What happened
Shares of Harrow Health (HROW 1.44%) were down more than 24% as of 1:45 p.m. ET Friday after the company reported first-quarter earnings following the close of trading Thursday. The pharmaceutical company focuses on eye therapies. The company's stock is still up by around 39% so far this year.
So what
The company reported a first-quarter loss of $6.6 million after losing $2.4 million in the same quarter a year ago, but there was positive news in the report. It set a quarterly record for revenue -- $26.1 million, up 28% sequentially and 18% year over year.
CEO Mark L. Baum said the company expects the revenue growth from its branded pharmaceutical products will "meaningfully outpace" sales growth for its compounded pharmaceutical products. The company also reaffirmed its revenue guidance range of $135 million to $143 million for 2023, representing a climb of 52% to 61% over 2022. The company also said it expects between $44 million to $50 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) this year.
Now what
Friday's share price drop seemed a bit excessive considering that the company is increasing revenue and needed to spend money to help launch its latest product, Iheezo, which was approved by the Food and Drug Administration (FDA) in September as an ocular surface anesthesia. The drug, which launched last week at the American Society of Cataract and Refractive Surgery, has already been given a reimbursement status by the Centers for Medicare & Medicaid Services. It is the first branded ocular anesthetic approved by the FDA in nearly 14 years. It is a numbing eye gel that is applied just prior to a procedure in the eye and is fast acting.
