Harrow Launches Access and Affordability Program with Price Reductions for Branded Products

Rhea-AI Summary

Harrow (HROW) announced a new initiative to improve access and affordability of its ophthalmic pharmaceutical products through two main strategies. First, the company is implementing price reductions for several products, starting with VIGAMOX® and MAXIDEX®. Second, Harrow established a partnership with GoodRx to provide discounted pricing for seven products including FLAREX®, ILEVRO®, MAXIDEX®, TOBRADEX® ST, VEVYE®, VIGAMOX®, and ZERVIATE® through GoodRx's platform, particularly benefiting uninsured and underinsured patients.

Positive

• Implementation of price reductions for key products VIGAMOX® and MAXIDEX®
• Strategic partnership with GoodRx expanding market access for seven products
• Potential for increased sales volume through improved product accessibility

Negative

• Price reductions may impact profit margins
• Discounted pricing through GoodRx could affect revenue per unit

Insights

Market Research Analyst

This strategic pricing initiative marks a significant shift in Harrow's market positioning, targeting both revenue growth and market share expansion. The partnership with GoodRx, which serves over 20 million monthly users, creates a powerful distribution channel for reaching price-sensitive consumers, particularly beneficial for the 7 key products included in the program.

The price reduction strategy for VIGAMOX® and MAXIDEX®, with more products under review, indicates a volume-over-margin approach. While this may initially impact per-unit profitability, the increased accessibility could drive higher prescription volumes and market penetration, especially among the growing population of underinsured patients. The move also positions Harrow more competitively against generic alternatives, potentially capturing market share from cost-conscious consumers who previously opted for lower-cost alternatives.

Financial Analyst

This initiative represents a calculated strategic pivot that could significantly impact Harrow's financial performance. By reducing prices and partnering with GoodRx, the company is positioning itself to capture a larger share of the $16 billion U.S. ophthalmic pharmaceutical market. The focus on cash-pay alternatives through GoodRx could improve cash flow predictability and reduce dependency on insurance reimbursements.

While there may be initial margin compression, the potential for increased volume and market share expansion could drive long-term revenue growth. The strategy also helps hedge against future generic competition by establishing stronger market presence and brand loyalty. The move demonstrates proactive management of pricing pressures while potentially creating sustainable competitive advantages.

New Partnership with GoodRx to Lower Costs for Uninsured and Underinsured Patients

NASHVILLE, Tenn.--(BUSINESS WIRE)-- Harrow (Nasdaq: HROW), a leading North American eyecare pharmaceutical company, today announced an innovative initiative to expand access and affordability for its ophthalmic pharmaceutical products. This effort includes a program of targeted price reductions for several Harrow products and a strategic partnership with GoodRx (Nasdaq: GDRX), the leading prescription savings platform in the U.S., providing patients with discounts on select Harrow products. This initiative reflects Harrow’s ongoing commitment to making essential, sight-saving medications accessible and affordable.

A core component of Harrow’s Access and Affordability Program is reducing the prices of several widely used eyecare products, addressing cost barriers that too often limit patient access. Harrow’s program began this week with price reductions for VIGAMOX^® and MAXIDEX^®, with the analysis of additional products underway. By lowering these costs, Harrow aims to improve patient access to high-quality eyecare products, ultimately enhancing patient outcomes and overall quality of life.

In addition, Harrow has partnered with GoodRx to provide a cash-pay alternative for the purchase of select Harrow products, including FLAREX^®, ILEVRO^®, MAXIDEX^®, TOBRADEX^® ST, VEVYE^®, VIGAMOX^®, and ZERVIATE^®. This alternative to traditional insurance offers patients discounted pricing through the GoodRx platform. By leveraging GoodRx’s reach, Harrow is meeting the needs of those who may not have adequate insurance coverage for the eyecare medications they need.

“Our company was founded on a mission to help patients manage and preserve their sight by providing access to innovative and affordable medicines, and these initiatives are a significant step in advancing that mission,” said Mark L. Baum, Chairman and Chief Executive Officer of Harrow. “Patients often tell us that insurance co-payments can make their medications cost-prohibitive. By reducing prices and providing new access points, we’re creating a win-win: helping patients access critical sight-saving treatments while simultaneously delivering improved value to Harrow’s shareholders.”

How to Access Discounts on Harrow Products Through GoodRx

Patients can search for participating pharmacies and access discounts directly through the GoodRx website or mobile app, providing a streamlined experience for obtaining their prescriptions.

About Harrow

Harrow, Inc. (Nasdaq: HROW) is a leading eyecare pharmaceutical company engaged in the discovery, development, and commercialization of innovative ophthalmic pharmaceutical products for the North American market. Harrow helps eyecare professionals preserve the gift of sight by making its portfolio of prescription and non-prescription pharmaceutical products accessible and affordable to millions of patients each year.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this release that are not historical facts may be considered such “forward-looking statements.” Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties which may cause results to differ materially and adversely from the statements contained herein. Some of the potential risks and uncertainties that could cause actual results to differ from those predicted include, among others, risks related to: liquidity or results of operations; our ability to successfully implement our business plan, develop and commercialize our products, product candidates and proprietary formulations in a timely manner or at all, identify and acquire additional products, manage our pharmacy operations, service our debt, obtain financing necessary to operate our business, recruit and retain qualified personnel, manage any growth we may experience and successfully realize the benefits of our previous acquisitions and any other acquisitions and collaborative arrangements we may pursue; competition from pharmaceutical companies, outsourcing facilities and pharmacies; general economic and business conditions, including inflation and supply chain challenges; regulatory and legal risks and uncertainties related to our pharmacy operations and the pharmacy and pharmaceutical business in general; physician interest in and market acceptance of our current and any future formulations and compounding pharmacies generally. These and additional risks and uncertainties are more fully described in Harrow’s filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2023, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. Such documents may be read free of charge on the SEC's web site at sec.gov. Undue reliance should not be placed on forward‑looking statements, which speak only as of the date they are made. Except as required by law, Harrow undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances after the date they are made, or to reflect the occurrence of unanticipated events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241113864368/en/

Investors

Jamie Webb

Director of Communications and Investor Relations

jwebb@harrowinc.com

Media

Deb Holliday

Holliday Communications, Inc.

deb@hollidaycommunications.net

Source: Harrow, Inc.

FAQ

What products are included in Harrow's (HROW) GoodRx partnership?

The partnership includes FLAREX®, ILEVRO®, MAXIDEX®, TOBRADEX® ST, VEVYE®, VIGAMOX®, and ZERVIATE®.

Which Harrow (HROW) products received price reductions in 2024?

VIGAMOX® and MAXIDEX® were the first products to receive price reductions under the new Access and Affordability Program.

How can patients access Harrow's (HROW) product discounts?

Patients can access discounts through the GoodRx website or mobile app, which shows participating pharmacies and available discounts.