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

We came across a bullish thesis on Harrow, Inc. on Make Money, Make Time’s Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on HROW. Harrow, Inc.’s share was trading at $47.88 as of September 24th. HROW’s trailing and forward P/E were 9.64 and 51.55 respectively according to Yahoo Finance.

Harrow Pharmaceuticals (HROW) is a U.S.-based ophthalmology-focused pharmaceutical company headquartered in Nashville, operating across three main pillars: FDA-approved drugs, compounded formulations, and equity stakes in emerging innovators. Its portfolio spans dry eye disease, glaucoma, ocular inflammation, post-surgical recovery, and retina therapies, positioning HROW as one of the few “full-spectrum” players in the U.S. ophthalmic market.

Flagship products include VEVYE for dry eye, projected to generate $100M+ in FY25 with patents through 2039; IHEEZO, the first new branded ocular anesthetic in 14 years, expected to reach $50M+ in FY25 with rapid growth; and TRIESENCE, a corticosteroid with patent protection until 2029. HROW is expanding into the retina category with BYOOVIZ and OPUVIZ, and its ImprimisRx compounding division acts as a stable cash generator while enhancing distribution, cross-selling, and operational efficiency. Strategic equity stakes in Melt Pharmaceuticals and Surface Ophthalmics offer convex upside with minimal incremental R&D risk.

Financially, HROW posted $116.6M in 1H 2025 revenue and anticipates $280M for FY25, with gross margins improving from 68% to 74% and EBITDA expected to grow from ~26% in FY25 to 38% in FY27. Debt refinancing and $250M in senior notes reduce capital costs and simplify the balance sheet. Key risks include gross-to-net exposure from PBM and insurance dynamics, as well as execution complexity across multiple verticals.

Valuation is highly compelling, with analysts projecting $529M revenue by 2027 and management targeting $1B; even analyst estimates imply a potential 3x upside, while management goals suggest up to 5x potential over three years. HROW’s combination of high-growth branded products, stable cash-generating compounding operations, and strategic equity stakes presents a rare opportunity with asymmetric upside for investors ahead of its upcoming Investor Day.

Previously we covered a bullish thesis on Harrow, Inc. (HROW) by Simon in October 2024, which highlighted the company’s strong revenue growth, direct-to-provider model, and high-growth segments like VEVYE and IHEEZO. The company’s stock price has appreciated approximately by 8.7% since our coverage. The thesis still stands as HROW’s diverse portfolio supports long-term growth. Oliver | MMMT Wealth shares a similar perspective but emphasizes full-spectrum portfolio, financials, and 2027 revenue upside.

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Disclosure: None.