Harrow, Inc
Harrow, Inc. develops and commercializes ophthalmic pharmaceutical products for the U.S. market, combining branded eye-care medicines with an ophthalmology-focused compounding business through ImprimisRx. The company sells prescription and non-prescription products to eye-care professionals and also earns revenue from intellectual property licenses and related arrangements.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueFDA-approved eye-care medicines sold under the Harrow name through wholesalers and distributors.
Custom ophthalmic compounded products sold through ImprimisRx to prescribers and patients.
Income from intellectual property licenses and out-license arrangements tied to ophthalmic assets.
Products
Reported · share of revenue- Product Sales Net99.7 %
- Other Revenue0.1 %
- Other Revenues0.1 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Harrow sells primarily into the U.S. eye-care channel, where physicians, clinics, ambulatory surgical centers, hospitals, and pharmacies use its products for patient treatment. Its branded products are distributed mainly through large pharmaceutical wholesalers, while ImprimisRx serves ophthalmology-focused prescribers and patients seeking compounded alternatives or cash-pay options.
Large wholesalers such as McKesson, Cencora, Western Wellness, and Cardinal Health buy branded products for downstream distribution.
Ophthalmologists and related prescribers buy or recommend branded and compounded products for patient treatment.
Care sites purchase ophthalmic products for in-office use and patient care workflows.
Patients buy compounded or direct-to-prescriber offerings when affordability or access is important.
They do not buy products directly but materially affect access, reimbursement, and net pricing.
Strategy
Harrow is shifting mix toward FDA-approved branded ophthalmic products while reducing reliance on compounded formulations. Management is also trying to simplify the product portfolio, improve operating efficiency, and expand access through cash-pay and direct-to-prescriber channels.
Branded products can improve mix, simplify operations, and reduce compounding dependence.
A smaller formulary can lower complexity, improve efficiency, and reduce regulatory burden.
Growth in branded products is the main driver of revenue and margin expansion.
Capital access supports operations, acquisitions, and product development.
Geography
Harrow is overwhelmingly a U.S.-focused business, with its commercial activity centered on the domestic ophthalmology market. The company’s revenues, distribution, and regulatory exposure are tied to U.S. wholesalers, prescribers, and federal healthcare agencies, so changes in U.S. reimbursement or FDA oversight have outsized impact.
Risks
Harrow depends on a concentrated set of wholesalers, payors, and PBMs, which gives counterparties leverage over pricing, rebates, and access. The business also faces regulatory, manufacturing, and financing risk because it relies on FDA approvals, third-party manufacturing and logistics, and debt refinancing to support growth.
- Customer and payor concentrationImpact: HighLikelihood: High
A small number of wholesalers and PBMs control a large share of purchasing and coverage decisions.
Exposure: Branded ophthalmic products
- Reimbursement and pricing pressureImpact: HighLikelihood: High
PBMs and insurers can demand discounts, rebates, or exclude products in favor of competitors.
Exposure: U.S. branded product sales
- Regulatory and approval riskImpact: HighLikelihood: Medium
Product commercialization depends on FDA approvals and ongoing compliance.
Exposure: Drug candidates and branded ophthalmic products
- Product quality, recall, and litigation riskImpact: HighLikelihood: Medium
Defects or adverse events could trigger recalls, liability, and reputational damage.
Exposure: Ophthalmic pharmaceuticals
- Debt and refinancing riskImpact: HighLikelihood: Low
Liquidity depends on refinancing existing borrowings and maintaining access to capital.
Exposure: Oaktree Loan and 2026 Notes
- Third-party manufacturing and supply chain dependenceImpact: MediumLikelihood: Medium
The company relies on external parties for certain components, manufacturing, and clinical activities.
Exposure: Branded and compounded products
Accounting
Judgemental itemsNet revenue depends on estimates for rebates, chargebacks, discounts, and product returns.
Impact: A 2-point change in aggregate rebate/discount rate was disclosed to move product revenue by about $10.6 million.
Product sales are recognized when control transfers, but variable consideration must be estimated upfront.
Impact: Affects timing and amount of branded and compounded revenue
Amortization and impairment judgments can materially affect operating income.
Impact: Relevant to branded product portfolio economics
Deferred tax asset realizability depends on projected taxable income and historical results.
Impact: Can materially affect tax expense and equity
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Last updated: 24/09/2026