NASHVILLE, Tenn. - Harrow (NASDAQ:HROW), a prominent eyecare pharmaceutical company in North America, has announced that its dry eye disease treatment VEVYE will be covered under the 2025 Medicare Part D Prescription Drug Program starting January 1, 2025. This inclusion in the formularies of major plan sponsors such as Express Scripts (NASDAQ:ESRX), Cigna (NYSE:CI), Kaiser Permanente, and CVS Caremark, extends VEVYE's reach to over 25 million Medicare Part D beneficiaries.
The company also confirmed that VEVYE has obtained comprehensive coverage across various insurance programs, with 100% inclusion in U.S. Medicaid programs and 60% in commercial insurance plans. This expansion is part of Harrow's strategy to make VEVYE accessible to patients with chronic dry eye disease (DED), which has a significant impact on the elderly population.
Mark L. Baum, Chairman and CEO of Harrow, expressed his enthusiasm about the Medicare Part D formulary inclusions, emphasizing the importance of accessible treatment options for the 67 million Medicare beneficiaries in the U.S., including 54 million with Medicare Part D prescription coverage. He highlighted the high prevalence of DED among seniors and the potential improvement in their eye health and quality of life that VEVYE could bring.
VEVYE (cyclosporine ophthalmic solution) 0.1% is the first and only cyclosporine-based product indicated for treating both the signs and symptoms of DED. It is dispensed in a 10 microliter drop, using a patented, preservative-free technology.
DED is a common condition where the eyes do not produce enough tears or when tears evaporate too quickly, often leading to discomfort and, in severe cases, vision loss. A 2020 report from Market Scope suggested that over 38 million Americans are affected by DED, with a large percentage being under-treated due to limited efficacy and poor tolerability of existing treatments.
This press release statement serves as the basis for the news, providing information on Harrow's latest market access achievement for VEVYE and its potential impact on patients with DED.
In other recent news, Harrow Inc. reported record quarterly revenue of $48.9 million, reflecting a 46% year-over-year growth. The company also amended its existing credit agreement with Oaktree Fund Administration, drawing down $30 million to fund a payment to Novartis (LON:0QLR) (SIX:NOVN). This financial move is part of Harrow Inc.'s strategic financial management. On the analyst front, B. Riley upgraded their price target on Harrow Health (NASDAQ:HROW) shares to $73.00, citing promising sales growth trajectory of its leading ophthalmic pharmaceutical brands. Other significant news includes the reintroduction of FDA-approved corticosteroid TRIESENCE after a five-year absence due to supply chain issues, and the progress of Melt Pharmaceuticals' lead program MELT-300. Furthermore, Harrow Inc. is expanding its corporate headquarters in Nashville, Tennessee, a move expected to create nearly 150 new jobs. These recent developments highlight the company's robust financial performance and potential for future growth.
InvestingPro Insights
Harrow's recent announcement regarding VEVYE's inclusion in the 2025 Medicare Part D Prescription Drug Program aligns with the company's impressive financial performance and market position. According to InvestingPro data, Harrow has demonstrated strong revenue growth, with a 50.06% increase in the last twelve months as of Q2 2024, reaching $154.15 million. This growth trajectory is further supported by a robust gross profit margin of 71.16% for the same period.
InvestingPro Tips highlight Harrow's significant market momentum, with a remarkable 348.45% price total return over the past six months. This surge in stock price reflects investor confidence in the company's strategic moves, such as the expanded coverage for VEVYE. Additionally, the company operates with a moderate level of debt, which provides financial flexibility to support its growth initiatives in the competitive eyecare pharmaceutical market.
While Harrow is not currently profitable, with an operating income margin of -5.29%, the expanded market access for VEVYE could potentially improve the company's financial outlook. The high return over the last year, as noted in another InvestingPro Tip, suggests that investors are optimistic about Harrow's future prospects, possibly anticipating that products like VEVYE will drive profitability in the coming years.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Harrow, providing deeper insights into the company's financial health and market position.
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