What happened
Shares of Harrow Health (HROW 5.30%) were up more than 17% at 11 a.m. ET on Wednesday after the eye care pharmaceutical company made several big announcements after the market closed on Tuesday and before it opened on Wednesday. The stock is up more than 45% so far this year.
So what
Harrow has the U.S. commercial rights to 10 branded ophthalmic pharmaceutical products approved by the Food and Drug Administration (FDA). Harrow also owns ImprimisRx, a leading U.S. ophthalmic‑focused pharmaceutical compounding business. After the markets closed on Tuesday, the company announced it was acquiring certain products from private Japanese pharmaceutical company Santen Pharmaceutical, which will substantially add to Harrow's stable of branded products. The new products include Flarex, a corticosteroid used for certain inflammatory eye conditions, Natacyn, a antifungal therapy used to treat conjuctivitis and other fungal conditions of the eye, antibiotic Tobradex, antifungal Verkazia, eye allergy medication Zerviate, and eye lubricants Freshkote and Cationorm Plus.
The company also announced, after the market closed on Tuesday, that it expected second-quarter revenues to be more than $31 million, compared to $23.3 million in the same period last year.
The last announcement, which came early Wednesday morning, was that the company is planning a $60 million public stock offering. Normally the last announcement would likely have brought the stock's price down, but the positives from the prior two announcements were enough to prevent that. The company explained the money would be used to fund the acquisition of Santen as well as to fund operations.
Now what
Obviously, the three announcements are a lot to unpack for investors. The key, though, is that the company obviously is feeling positive about its future. It had a strong first quarter that saw revenue rise 18% year over year, and the second quarter is following suit. The addition of the therapies from Santen should enable the company to add to that growth.
