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Harrow Health(HROW) - 2023 Q4 - Earnings Call Transcript
HROWHarrow Health(HROW)2024-03-20 14:14
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Financial Data and Key Metrics Changes - The company achieved record revenues in 2023, increasing by 47% compared to 2022, with adjusted EBITDA more than doubling during the same period [21][34] - The cash position strengthened, ending the year with 83millionincashandcashequivalents,withexpectationsforcontinuedgrowthincashreserves[35]BusinessLineDataandKeyMetricsChanges−TheVEVYElaunchisperformingexceptionallywell,withallkeyperformancemetricstrendingpositively,indicatingstrongmarketacceptance[4][23]−IHEEZOhasseencontinueduptakesinceitslaunchinMay2023,withrecentdevelopmentsfromCMSregardingitsaveragesellingpricepositivelyimpactingitsmarketpotential[37][60]MarketDataandKeyMetricsChanges−TheU.S.dryeyemarket,whereVEVYEoperates,wasapproximately8millionunitslastyear,indicatingasubstantialopportunityforgrowth[36]−Theretinamarket,particularlyforintravitrealinjections,issignificant,exceeding10millionunitopportunitiesannually,whichthecompanyistargeting[44]CompanyStrategyandDevelopmentDirection−ThecompanyaimstodominatetheU.S.chronicdryeyediseasemarketwithVEVYE,leveragingitsuniquetolerabilityprofilecomparedtoexistingproducts[36][68]−ThereisafocusonexpandingthesalesandmarketingeffortsforIHEEZOandTriesencetoacceleraterevenuegrowth,withplanstoinvestfurtherintheseareas[42][51]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedhighconfidenceinachievingrevenueguidanceofover83 million in cash and cash equivalents, with expectations for continued growth in cash reserves [35] Business Line Data and Key Metrics Changes - The VEVYE launch is performing exceptionally well, with all key performance metrics trending positively, indicating strong market acceptance [4][23] - IHEEZO has seen continued uptake since its launch in May 2023, with recent developments from CMS regarding its average selling price positively impacting its market potential [37][60] Market Data and Key Metrics Changes - The U.S. dry eye market, where VEVYE operates, was approximately 8 million units last year, indicating a substantial opportunity for growth [36] - The retina market, particularly for intravitreal injections, is significant, exceeding 10 million unit opportunities annually, which the company is targeting [44] Company Strategy and Development Direction - The company aims to dominate the U.S. chronic dry eye disease market with VEVYE, leveraging its unique tolerability profile compared to existing products [36][68] - There is a focus on expanding the sales and marketing efforts for IHEEZO and Triesence to accelerate revenue growth, with plans to invest further in these areas [42][51] Management's Comments on Operating Environment and Future Outlook - Management expressed high confidence in achieving revenue guidance of over 180 million for 2024, citing recent positive developments as a significant boost to their outlook [60][76] - The company is optimistic about the future trajectory of IHEEZO following confirmation from CMS regarding separate reimbursement, which is expected to open up a large market [60][78] Other Important Information - The company has added approximately 100 new employees, primarily for the VEVYE launch, indicating a commitment to scaling operations [27] - A recent cyber-attack affected payment processing, but recovery is expected by the second quarter, with normalization anticipated [65] Q&A Session Summary Question: Can you provide a breakdown of the anticipated contribution from your growth drivers for 2024? - Management reiterated confidence in revenue guidance exceeding $180 million but did not provide specific product guidance [40][51] Question: What is the anticipated cadence for top-line growth this year? - The company expects a linear increase in revenue similar to the previous year [72] Question: How will pricing adjustments impact margins in 2024? - Pricing for Triesence has been adjusted to create profit incentives while remaining competitive, with expectations for margins to vary based on revenue growth [54][72]