Harrow Health, Inc. (NASDAQ:HROW) Q2 2023 Earnings Call Transcript

Brooks O’Neil: Okay. And that’s very helpful guys. Any sense for what the doctor gets reimbursed in these various sites. Again I understand that it’s various buckets whether we’re talking hospitals or physician offices whether we’re talking commercial, Medicare or Medicare Advantage. But just help us with a general sense. If I understand it correctly it’s 544 plus some margin right?

Mark L. Baum: Yeah. There is — so there’s obviously a price that the ASC hospital or physician is paying for the product. And then there is — and that is typically a lower amount than the reimbursed amount. Sometimes there is an extra fee so a so-called GAAP that can be built to a supplemental. And so what we’re seeing is that the payments are coming in through the J-code and the supplementals are being paid as well if that coverage is available. So we’re not hearing any complaints. And when I say any I literally meet any complaints. There are always cases where the long NDC is billed or there are issues like that. Those are administrative. But the code itself is being paid and the supplementals even commercial and the advantages are covering the delta.

Brooks O’Neil: Great. And your sense is that the physicians in their office have had reasonable success getting paid too, which is really the big market, right?

Mark L. Baum: The in-office market is about twice the size we estimate to the cataract and surgical markets. So the intravitreal injection market in particular is double the size of the ASC hospital market. And so we’re seeing coverage there as well. And as I said, I think the big picture message with IHEEZO is that that last piece of the puzzle to ensure adoption of the product. When you have a product that works like IHEEZO you want to make sure and it does have a J-code, which IHEEZO has we want to make sure that physicians are able to build the code. And that was the last piece of the puzzle and we’re seeing the code get paid. And so there are really no barriers to doctors now adopting the product. And that’s I think very, very positive.

Brooks O’Neil: Very positive. That’s great. Let me shift gears and just ask you I don’t know nearly as much — I don’t know much about IHEEZO. I know home was nothing about VEVYE, which I apologize for and I’m going to learn a lot more about it both today and in the near future. But can you help me understand, or us understand the reimbursement picture for VEVYE in terms of where you stand with regard to getting the same kind of reimbursement established for that product, or whatever is required for that product in round numbers what the amount of reimbursement might be for that product?

Mark L. Baum: Yeah. So IHEEZO is a buy-and-bill product and it’s a Part B as in bravo product. And VEVYE is different. It is a Part D as in delta. It’s a drug product and it will be billed to a different part of the coverage. Now VEVYE is newly FDA-approved and the key activity now in addition to all of the marketing work that’s going on behind the scenes that’s already started is really market access. And so our team is working and focused on market access activities for VEVYE and in those activities now and we’ll go through a contracting price not only with public payers, but also private payers as well. We have an amazing market access team and this product VEVYE is certainly a priority for them. So we have not priced the product, yet.