1035 Capital Management shared a bullish thesis on Harrow, Inc., highlighting its focused pharmaceutical rollup strategy in ophthalmology. HROW’s stock was trading at $34.37 on July 15th, with a trailing P/E of 9.64. Recent product launches like Vevye are driving rapid revenue growth and operational leverage.

Harrow’s success is attributed to Vevye’s best-in-class clinical profile and innovative formulation. The “Vevye Access for All” program has boosted prescriptions and prescriber engagement. Recent setbacks are seen as transitory, presenting a potential entry opportunity. Harrow’s model mirrors successful rollups like Horizon Pharmaceuticals, focusing on acquiring marketed drugs and reinvesting profits.

With EBITDA and cash flow improving, Harrow is poised to refinance debt, expand margins, and scale manufacturing. The company’s exclusive focus on ophthalmology positions it in a less competitive, high-margin segment. Valuation remains attractive, with potential upside from organic execution, strategic M&A, and pipeline acceleration. Longer-term success could lead to acquisition by a larger pharma player.

Despite a 22% stock price depreciation since October 2024, 1035 Capital Management remains bullish on Harrow, Inc. They emphasize the company’s rollup strategy in ophthalmology and its strategic inflection point. Management’s high-stakes equity compensation reflects strong conviction, but disciplined execution is crucial for future success.

Read more at Yahoo Finance: Harrow, Inc. (HROW): A Bull Case Theory