Harrow (HROW) Q2 2025: TriEssence Up 32% as Ophthalmic Portfolio Accelerates Leverage
TriEssence’s 32% sequential volume surge and IHESO’s 251% revenue jump underscore Harrow’s expanding leverage across its ophthalmic platform. V-VI’s stabilized ASP and broadening access position the franchise for sustained outperformance into the second half, while the Samsung biosimilars deal sets up a new competitive front for 2026. The company’s commercial infrastructure is now primed to convert incremental volume into profit, with coverage and market penetration as the key levers to monitor.
Summary
- TriEssence Expansion: Accelerated retina and new market entry signal a broader revenue base taking hold.
- V-VI Access and ASP Stability: Pharmacy network expansion and business rule changes lock in margin improvement.
- Biosimilars Pipeline Integration: Samsung portfolio adds a major growth vector for 2026 and beyond.
Performance Analysis
Harrow’s ophthalmic disease management platform delivered a 30% year-over-year revenue increase, with total sales reaching $63.7 million in Q2 and a 33% sequential lift. The company’s model, which monetizes branded pharmaceuticals for both front and back of the eye across insurance and cash-pay channels, is now showing clear operating leverage as adjusted EBITDA hit $17 million and net income reached $5 million for the quarter. IHESO’s revenue soared 251% sequentially, propelled by a retina-focused commercial pivot and expanded GPO (group purchasing organization, bulk-buying network) access, while TriEssence volumes grew 32% quarter-over-quarter, reflecting both deeper retina penetration and the early impact of new leadership focused on the ocular inflammation market.
V-VI, Harrow’s flagship cyclosporine-based dry eye therapy, saw a 66% jump in prescription volume, though revenue fell 13% sequentially due to a normalization in average selling price (ASP) after Q1’s business rule reset. Management emphasized that ASP has now stabilized, and the addition of ApolloCare as a specialty pharmacy partner should improve coverage and drive a modest upward ASP bias through year-end. ImprimisRx, the company’s compounding business, grew 7% sequentially, maintaining its role as a cash-generating, stable base. Specialty branded products rebounded, with TriEssence leading and further upside expected as the product enters the large post-surgical market in Q4.
- TriEssence Volume Acceleration: 32% sequential growth and 870 new accounts YTD, with retina and inflammation markets opening.
- IHESO Retina Pivot: 251% revenue growth, 19 new retina accounts, and 170% distributor shipment increase highlight momentum.
- V-VI Prescription Surge: 66% volume growth, 62% increase in new scripts, and refill rates sustaining at industry-leading levels.
Operating leverage is now evident, with incremental revenue translating to profit as infrastructure costs remain stable. The company is on pace to achieve its $280 million full-year revenue target, with a stronger second half expected due to seasonality and ramping product adoption.
Executive Commentary
"Our primary financial goal is to deliver a $250 million revenue quarter by the end of 2027. I believe this is achievable because of what we own, how we're performing, and where I see the business heading, and our demonstrated history of growth from literally no customers, no products, and no revenue about a dozen years ago."
Mark L. Baum, Chief Executive Officer
"Samsung is a leader in biosimilars, and Harrow is, we think, a leader in ophthalmology. And definitely, we have a vision of being one of the top ophthalmology pharma companies in the U.S., and we see this really as a perfect marriage between the two companies."
Andrew Boll, Chief Financial Officer
Strategic Positioning
1. Ophthalmic Portfolio Breadth and Leverage
Harrow’s portfolio now spans 59 prescription products, covering both front and back of the eye, and addressing insurance and cash-pay markets. The infrastructure, built over five years, enables the company to scale volume with minimal incremental cost, creating high operating leverage as demand for key assets like V-VI, IHESO, and TriEssence accelerates. The platform’s ability to serve offices, ambulatory surgical centers, hospitals, and direct-to-patient channels enhances market reach and resilience.
2. Market Access and ASP Optimization
The launch of the V-VI Access for All (VAFA) initiative and the ApolloCare partnership have structurally improved V-VI’s margin profile. By expanding pharmacy network coverage and optimizing business rules, Harrow now captures more high-value prescriptions and reduces patient out-of-pocket costs—directly increasing the profitability and stickiness of its dry eye franchise. ASP volatility has been addressed, with management expecting a stable to slightly improving trend in the second half.
3. Biosimilars and Pipeline Expansion
The acquisition of exclusive U.S. rights to Samsung’s biosimilars portfolio (BioViz and OpioViz, referencing Lucentis and Eylea) positions Harrow to enter the large anti-VEGF market in 2026. These FDA-approved, interchangeable biosimilars will leverage Harrow’s existing retina relationships and commercial infrastructure, accelerating uptake and providing a new growth pillar. The integration is expected to be seamless due to overlapping customer bases with existing products like IHESO and TriEssence.
4. Specialty Branded Product Rebound
TriEssence’s relaunch, under new sales leadership, is driving account growth and volume acceleration in the retina segment and sets up for a major push into the post-surgical ocular inflammation market in Q4. The product’s broad coverage (84%) and low out-of-pocket cost ($37 copay) make it highly competitive, with the company targeting significant market share gains as it expands into its largest addressable market.
5. Operating Model and Commercial Execution
The company’s commercial team, GPO partnerships, and specialty pharmacy reach create a self-reinforcing flywheel: each new launch deepens penetration across surgical centers, retina practices, and optometry offices, while also accelerating adoption of existing products. Management is preparing to scale the commercial team further once supply chain safety stock is secured, especially for V-VI, to unlock additional prescriber and patient growth in underpenetrated regions.
Key Considerations
Harrow’s Q2 reflects a business at an inflection point, with platform leverage and market access improvements converging to drive both top-line and margin expansion. The following factors will shape the trajectory into the second half and 2026:
Key Considerations:
- V-VI ASP and Coverage Stability: The ApolloCare partnership and business rule resets have stabilized ASP, with further improvement tied to commercial prescription capture.
- TriEssence Market Expansion: Entry into ocular inflammation and continued retina growth could drive outsized H2 revenue, but requires execution from new sales leadership.
- IHESO Penetration: Retina pivot and “IHESO for All” initiative are accelerating account growth and utilization, with broad payer coverage supporting adoption.
- Biosimilars Launch Timing: Samsung portfolio integration is a 2026 catalyst, but execution risk remains during the transition and relaunch phase.
- Commercial Team Scaling: Investment in field force and marketing is gated by supply chain confidence, with upside as underpenetrated geographies are targeted.
Risks
Key risks include execution on TriEssence’s push into the ocular inflammation market, biosimilars launch timing and competitive response, and the need to maintain supply chain flexibility as demand ramps. ASP and margin improvements for V-VI depend on continued payer coverage and successful capture of high-value scripts. Regulatory changes or disruption in specialty pharmacy networks could pressure revenue quality or growth cadence.
Forward Outlook
For Q3, Harrow expects:
- Continued sequential revenue growth driven by V-VI, IHESO, and TriEssence volume expansion.
- Stable to modestly improving ASP for V-VI as ApolloCare network impact builds.
For full-year 2025, management maintained guidance:
- Revenue target of more than $280 million, requiring $169 million in H2 sales.
Management highlighted multiple drivers for H2 acceleration:
- Seasonally stronger second half and ramping adoption across key franchises.
- TriEssence and IHESO expected to outperform, offsetting slower segments.
Takeaways
Harrow’s Q2 marks a transition to scalable profitability, with operational leverage now visible as product volume surges across the ophthalmic portfolio.
- Platform Leverage: Commercial infrastructure is absorbing new volume with minimal incremental cost, driving margin expansion as product adoption grows.
- Strategic Breadth: Biosimilars, branded innovation, and specialty pharmacy expansion diversify growth drivers and reduce reliance on any single product.
- Execution Watchpoint: Success in TriEssence’s Q4 market entry and biosimilars launch will determine the pace and durability of multi-year growth.
Conclusion
Harrow’s operating leverage and portfolio breadth are now translating into tangible profit and market share gains, with multiple franchises showing accelerating adoption. The next phase hinges on execution in new markets and seamless integration of biosimilars, but the platform is positioned for sustained, diversified growth.
Industry Read-Through
Harrow’s results reinforce the value of commercial infrastructure scale and payer coverage in specialty pharma, particularly in ophthalmology where market access and refill rates drive durable revenue streams. The rapid adoption of biosimilars and branded therapies highlights physician openness to new entrants with proven clinical and economic value. Competitors in the space should note the importance of GPO partnerships, specialty pharmacy networks, and integrated go-to-market strategies as critical to gaining share and defending margin. The biosimilars integration will be a key watchpoint for all U.S. ophthalmic players as the market shifts toward interchangeable therapies and broader access models.