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

We came across a bullish thesis on Harrow, Inc. on MVC Investing’s Substack by M. V. Cunha. In this article, we will summarize the bulls’ thesis on HROW. Harrow, Inc.’s share was trading at $47.84 as of January 12th. HROW’s trailing and forward P/E were 9.64 and 44.25  respectively according to Yahoo Finance.

Harrow, Inc., an eyecare pharmaceutical company, engages in the discovery, development, and commercialization of ophthalmic pharmaceutical products. HROW has quietly transformed from a controversial ophthalmic compounder into one of the most integrated specialty pharma platforms in U.S. eye care. Founded by Mark Baum in 2012 as Imprimis Pharmaceuticals, the company pivoted from custom formulations to acquiring and scaling FDA-approved ophthalmic drugs through its own nationwide commercial infrastructure.

Its three-segment model—Branded Pharmaceuticals, ImprimisRx, and Strategic Holdings—creates a self-reinforcing ecosystem: ImprimisRx builds physician relationships; branded drugs like VEVYE, IHEEZO, and TRIESENCE drive growth; and strategic assets such as MELT-300 extend reach beyond ophthalmology.

At the center is Harrow’s “Access for All” program, an in-house reimbursement engine that removes friction for doctors and patients, underpinning rapid adoption and high retention. The firm’s disciplined acquisition strategy—buying late-stage or under-commercialized assets and scaling them via a single ophthalmology-focused sales force—has produced compounding revenue growth above 40% annually since 2014.

Looking ahead, Harrow targets over $1 B in annualized revenue and 30–40% EBIT margins by 2027, driven by expanding dry-eye penetration, entry into the $12 B retina market via anti-VEGF biosimilars, and pipeline launches such as BYQLOVI and MELT-300. Founder-led discipline, high insider ownership, and capital-light economics strengthen the investment case.

At a sub-$1.4 B market cap (~5× 2028E EBIT), Harrow trades like a niche compounder despite operating as a scaled ophthalmic pharma platform. Execution on product launches and reimbursement remains key, but the setup offers asymmetrical upside—with management, margin profile, and infrastructure already in place.

Previously we covered a bullish thesis on Harrow, Inc. (HROW) by Simon in October 2024, which highlighted strong revenue growth, expanding dry-eye treatments, and improving efficiency under CEO Mark Baum. The company’s stock has depreciated about 8.55% since then due to rising costs, though the thesis remains valid. M. V. Cunha shares a similar view but focuses on Harrow’s integrated ophthalmic platform and margin expansion potential.

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Disclosure: None.