Harrow’s ImprimisRx Subsidiary Receives $34.9 Million Unanimous Jury Verdict Award in ImprimisRx, LLC v. OSRX, Inc.

Rhea-AI Summary

Harrow (HROW) announced a favorable jury verdict in a trademark infringement case where its subsidiary ImprimisRx sued OSRX, Inc. and Ocular Science, Inc. The eight-person jury unanimously found the defendants guilty of willful trademark infringement and unfair competition, awarding $34.9 million in damages. The verdict includes $20.4 million in punitive damages and $14.5 million in actual damages. The case was tried in the United States District Court for the Southern District of California, where the jury validated ImprimisRx's trademark estate and found the defendants acted with malice, fraud, or oppression.

Positive

• Awarded $34.9 million in total damages
• Successfully defended intellectual property rights
• Unanimous jury verdict in favor of ImprimisRx
• Validation of company's trademark estate

Negative

• Incurred significant legal expenses and time investment

Insights

Legal Expert

This landmark verdict represents a significant win for Harrow, with substantial financial implications. The $34.9 million award, including $20.4 million in punitive damages and $14.5 million in actual damages, demonstrates the jury's strong condemnation of OSRX's willful trademark infringement. The unanimous verdict validates ImprimisRx's entire trademark portfolio and establishes a powerful precedent for protecting intellectual property in the ophthalmic compounding market.

The inclusion of substantial punitive damages, comprising nearly 60% of the total award, sends a clear deterrent message to potential future infringers. This verdict strengthens Harrow's market position and adds significant value to their intellectual property portfolio. The finding of malice, fraud, or oppression enhances the likelihood that the verdict will withstand potential appeals, though enforcement and collection processes may take time.

Financial Analyst

This verdict significantly bolsters Harrow's financial position and market value. The $34.9 million award represents approximately 2.4% of Harrow's current market capitalization, providing a meaningful boost to their balance sheet. Beyond the immediate monetary impact, the verdict protects Harrow's revenue streams by preventing competitors from exploiting their intellectual property and brand equity in the ophthalmic compounding market.

The successful defense of their trademarks preserves their competitive advantage and market leadership position, potentially leading to increased customer confidence and market share. This outcome may also deter future competitors from attempting similar infringement, reducing future legal expenses and protecting long-term revenue potential.

Jury in Trademark Infringement Case Finds in Favor of ImprimisRx

NASHVILLE, Tenn.--(BUSINESS WIRE)-- Harrow (Nasdaq: HROW), a leading North American eyecare pharmaceutical company, today announced a favorable jury verdict in the case of ImprimisRx, LLC v. OSRX, Inc. ImprimisRx, a wholly owned subsidiary of Harrow, brought the lawsuit to a jury trial in a San Diego, California, federal court alleging willful acts of trademark infringement against OSRX, Inc. and its related party, Ocular Science, Inc. An eight-person jury in the United States District Court for the Southern District of California unanimously validated the entirety of ImprimisRx’s subject trademark estate and found OSRX, Inc. or Ocular Science, Inc. acted with malice, fraud, or oppression, willfully engaging in trademark infringement and unfair competition under California and federal law. The $34.9 million verdict includes $20.4 million in punitive damages and $14.5 million in actual damages.

“While we are extremely pleased with the jury verdict, which supports ImprimisRx’s position as the market-leading innovator in the U.S. ophthalmic compounding market, we would have rather had the defendant in this case, and its CEO and leadership team, respect our trademarks and not willfully engage in unfair competition,” said Mark L. Baum, Chief Executive Officer of Harrow. “It goes without saying that, having now successfully defended our intellectual property, at great time and expense, we have confidence that these defendants and any others will not infringe on our creativity or attempt to take advantage of the significant investments we’ve made over many years building our trusted brands. In addition to our sincere appreciation to our extraordinary lawyers, we are grateful to the jury for carefully reviewing the evidence and reaching a just conclusion, allowing us to continue focusing on our work to make eyecare more accessible and affordable for patients across North America.”

ImprimisRx, LLC was represented by Keith J. Wesley, Christopher W. Arledge, and George Laiolo of ELLIS GEORGE LLP, with the management of litigation strategist Nikki Wyll of Wyll Legal Consulting.

OSRX, Inc. and Ocular Science, Inc. were represented by Dylan J. Liddiard, Dale Bish, Thomas J. Martin, Charles A. Talpas, and Mikaela Burkhardt of WILSON SONSINI GOODRICH & ROSATI.

The subject case is Case No. 3:21-cv-01305-BAS-DDL.

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. For more information about Harrow, please visit harrow.com.

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, including litigation matters, and other 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/20241121119103/en/

Jamie Webb, Director of Communications and Investor Relations

jwebb@harrowinc.com

615-733-4737

Source: Harrow, Inc.

FAQ

What was the total amount awarded to Harrow (HROW) in the OSRX trademark lawsuit?

Harrow (HROW) was awarded $34.9 million in total damages, consisting of $20.4 million in punitive damages and $14.5 million in actual damages.

What did the jury find OSRX guilty of in the Harrow (HROW) trademark case?

The jury found OSRX guilty of willful trademark infringement and unfair competition under California and federal law, determining they acted with malice, fraud, or oppression.

Where was Harrow's (HROW) trademark infringement case against OSRX tried?

The case was tried in the United States District Court for the Southern District of California in San Diego.