Harrow Health Acquires Rights of 4 Ophthalmic Drops from Novartis

Harrow Health, Inc. (NASDAQ: HROW) revealed that it has acquired the exclusive U.S. commercialization rights to four FDA-approved branded eye drops from Novartis (NYSE:NVS) for a one‑time payment of $14 million.

Notably, shares of the ophthalmic-focused healthcare company, with the current market capitalization of $231 million, have gained 64% over the past year.

The four acquired medicines are IOPIDINE 1% and 0.5%; MAXITROL 3.5mg; and MOXEZA 0.5%.

IOPIDINE 1% is vital in the treatment of intraocular pressure during and after laser eye surgery. It is used in approximately 40% of all prior cataract surgery patients and has been trusted by physicians for many years.


With this acquisition, Harrow Health becomes the only U.S. ophthalmic pharmaceutical company to provide both branded FDA-approved products as well as high-quality compounded formulations.

Furthermore, the acquired products will enhance Harrow’s existing ophthalmic‑focused product portfolio, and strengthen its foothold in the growing ophthalmic surgical and acute care market.


According to the terms of the deal, Harrow and Novartis will immediately begin a transition period. During the period, Novartis will continue to sell the products and transfer the related net profit to Harrow.

After the transition period, Harrow expects to have the products manufactured by third parties and commercialize the same for the U.S. market. However, Novartis will retain all rights to the products outside of the U.S.   

The medicines will be sold, marketed, and distributed through Harrow’s wholly-owned subsidiary, ImprimisRx.

CEO Comments

Sharing details of the company’s strategies, Harrow Health CEO, Mark L. Baum, commented, “These acquisitions, along with previously announced transactions for AMP-100, MAQ-100, and the expansion of our relationship to sell and market DEXYCU®, are consistent with our strategic mission to leverage the ImprimisRx commercial platform by adding high-value FDA approved products into our family of ophthalmic pharmaceutical products.”

He further added, “We are excited about the benefits these newest products provide our more than 10,000 customers, and we expect ImprimisRx’s commercial and distribution platform to be a tremendous advantage in the lifecycle management of these clinically valuable medicines.”

Analysts Recommendation

Last month, Ladenburg Thalmann analyst Jeffrey Cohen increased the price target on Harrow Health to $16.50 (92.3% upside potential) from $15.25 and reiterated a Buy rating.

Overall, the stock has a Strong Buy consensus rating based on 3 unanimous Buys. At the time of writing, the average Harrow Health price target was $15.83, which implies 84.5% upside potential from current levels.

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