Harrow, Inc. (HROW): A Bull Case Theory

We came across a bullish thesis on Harrow, Inc. on 1035 Capital Management’s Substack. In this article, we will summarize the bulls’ thesis on HROW. Harrow, Inc.’s share was trading at $34.37 as of July 15^th. HROW’s trailing P/E was 9.64 according to Yahoo Finance.

Harrow (HROW) is executing a focused pharmaceutical rollup strategy within ophthalmology, targeting branded drugs with limited competition and integrating them into a concentrated commercial platform. The company is at a strategic inflection point, with recent product launches such as Vevye driving rapid revenue growth and operational leverage. Vevye, now nearing 50% of total revenue, is demonstrating accelerating adoption due to its best-in-class clinical profile and innovative, preservative-free formulation.

Its success is being bolstered by Harrow’s “Vevye Access for All” program, which has dramatically increased prescriptions and prescriber engagement while sustaining strong pricing. With a growing, underserved $3B market and Vevye’s strong trajectory, Harrow expects it to become its first nine-figure revenue product.

While recent setbacks—such as destocking of Iheezo and a slow TriEsence relaunch—have pressured the stock, these are viewed as transitory and present a potential entry opportunity. Harrow’s model mirrors that of successful rollups like Horizon Pharmaceuticals: acquiring marketed drugs, optimizing commercial execution, and reinvesting profits into further acquisitions.

With EBITDA and cash flow improving, the company is positioned to refinance debt, expand margins, and scale manufacturing. Management’s high-stakes equity compensation reflects strong conviction but also necessitates disciplined execution.

Harrow’s exclusive focus on ophthalmology helps avoid the pitfalls of overstretched rollups and positions it in a less competitive, high-margin segment. Valuation remains attractive with upside tied to continued organic execution, pipeline acceleration, strategic M&A, and monetization of its Melt Pharmaceuticals stake. Longer-term, success could lead to an acquisition by a larger pharma player seeking exposure to this growing niche.

Previously we covered a bullish thesis on Harrow, Inc. by Simon in October 2024, which highlighted strong revenue growth, the rise of Vevye, and the benefits of its direct-to-provider model. The company’s stock price has depreciated approximately by 22% since our coverage due to near-term setbacks. 1035 Capital Management shares a similar view but emphasizes Harrow’s rollup strategy and inflection point.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None.