Harrow Sells Non-Ophthalmic Compounding Business

Rhea-AI Summary

Harrow (Nasdaq: HROW) has announced the sale of its non‑ophthalmic compounding business to Innovation Compounding Pharmacy, LLC, part of Revelation Pharma Corporation. This strategic move aligns with Harrow's goal to focus exclusively on ophthalmic therapies. The sale encompasses various assets, excluding a production facility, while Revelation will hire Harrow employees involved in this area. The transition support from Harrow will last approximately three months. This decision aims to enhance Harrow's core competencies as it approaches multiple significant milestones, including upcoming product launches.

Positive

• Strategic focus on ophthalmic therapies enhances core competencies.
• Proceeds from the sale will support expansion of the branded ophthalmic product portfolio.
• Upcoming commercial launch of FDA-approved IHEEZO and new product launches are anticipated.

Negative

• None.

NASHVILLE, Tenn.--(BUSINESS WIRE)-- Harrow (Nasdaq: HROW), an eyecare pharmaceutical company exclusively focused on the discovery, development, and commercialization of innovative ophthalmic therapies, today announced the sale of its non‑ophthalmic compounding business to Innovation Compounding Pharmacy, LLC, an affiliate of Revelation Pharma Corporation (“Revelation”).

Pursuant to the terms of the transaction, Revelation purchased the assets of Harrow’s non‑ophthalmic compounding business, including its formulations, customer accounts, and other related assets. The transaction did not involve a pharmaceutical production or dispensing facility. Harrow will continue to support Revelation during an estimated three-month transition period, and Revelation will offer employment to Harrow employees supporting the acquired business.

“This transaction is consistent with Harrow’s strategic vision to focus exclusively on ophthalmic medicines – to be a ‘pure play’ ophthalmic pharmaceuticals company,” said Mark L. Baum, Harrow’s Chairman and Chief Executive Officer. “As we approach several key milestones, including the upcoming commercial launch of recently FDA-approved IHEEZO™; the launch of our patent‑pending Fortisite™ compounded combination antibiotics; the outcome of the MELT‑300 pivotal efficacy study, expected before the end of this year, for one of our former subsidiaries, Melt Pharmaceuticals; progress on product acquisition activities we are pursuing, and new ophthalmic compounded product launches expected in the coming months, we believe this transaction demonstrates our resolve to concentrate on our core competencies and commercial expertise in the North American ophthalmic pharmaceuticals market. Going forward, our capital allocation strategy, including proceeds from this transaction, will be aimed at expanding Harrow’s branded ophthalmic product portfolio.”

About Harrow

Harrow (Nasdaq: HROW) is an eyecare pharmaceutical company exclusively focused on the discovery, development, and commercialization of innovative ophthalmic therapies that are accessible and affordable. For more information about Harrow, including investor-related materials, please visit the corporate website, harrowinc.com, or Harrow’s LinkedIn page.

About Revelation Pharma Corporation

Revelation Pharma is a national network of 503A and 503B compounding pharmacies providing innovative and quality pharmaceutical products and services through “industry best” patient care and solutions for customers. Revelation Pharma is owned by Osceola Capital, a Tampa-based private equity firm that invests in lower middle-market services companies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221005005735/en/

Investors:

Jamie Webb

Director of Communications and Investor Relations

jwebb@harrowinc.com

615-733-4737

Media:

Deb Holliday

Holliday Communications, Inc.

deb@hollidaycommunications.net

412-877-4519

Source: Harrow

FAQ

What company did Harrow sell its non-ophthalmic compounding business to?

Harrow sold its non-ophthalmic compounding business to Innovation Compounding Pharmacy, LLC, an affiliate of Revelation Pharma Corporation.

What is the purpose of Harrow's recent business sale?

The sale aligns with Harrow's strategic vision to focus exclusively on ophthalmic medicines.

How long will Harrow support the transition to Revelation Pharma?

Harrow will support Revelation during an estimated three-month transition period.

What are some upcoming milestones for Harrow following the sale?

Harrow is approaching several milestones, including the launch of IHEEZO and progress on new ophthalmic product launches.

What will happen to Harrow employees after the sale?

Revelation will offer employment to Harrow employees who were supporting the acquired non-ophthalmic compounding business.