Harrow Inc (HROW) 2024 Q3 法說會逐字稿

Good morning and welcome to Harrow's third quarter, 2024 earnings conference call. My name is Michelle and I will be your operator for today's call. At this time. All participants are in a listen-only mode later, we will conduct a question and answer session as a reminder, this conference is being recorded. I would now like to turn the call over to Jamie Webb, Director of Communications and Investor Relations for Harrow. Please go ahead.

早安，歡迎參加哈羅公學 2024 年第三季財報電話會議。我叫米歇爾，我將擔任您今天通話的接線生。此時。稍後所有與會者均處於監聽模式，我們將進行問答環節作為提醒，本次會議正在錄製中。我現在想將電話轉給哈羅公關和投資者關係總監傑米·韋伯 (Jamie Webb)。請繼續。

Thank you operator.

謝謝運營商。

Good morning and welcome to Harrow third quarter, 2024 earnings conference call.

早安，歡迎參加哈羅公學 2024 年第三季財報電話會議。

Before we begin today. Let me remind you that the company's remarks may include forward-looking statements within the meaning of federal securities law.

在我們今天開始之前。讓我提醒您，該公司的言論可能包括聯邦證券法含義內的前瞻性陳述。

Forward-looking statements are subject to numerous risks and uncertainties. Many of which are beyond Harold's control including risks and uncertainties described from time to time in its sec filings such as risk and uncertainties related to the company's ability to make commercially available. Its FDA approved products and compounded formulations and technologies and FDA approval of certain drug candidates in a timely manner or at all for a list and description of those risks and uncertainties. Please see the risk factors section of the company's most recent annual report on form 10-K and subsequent quarterly reports on form 10-Q filed with the Securities and Exchange Commission.

前瞻性陳述受到許多風險和不確定性的影響。其中許多因素超出了 Harold 的控制範圍，包括其 SEC 文件中不時描述的風險和不確定性，例如與公司商業化能力相關的風險和不確定性。其 FDA 批准了產品和複合製劑和技術，並且 FDA 及時或完全批准了某些候選藥物，以列出和描述這些風險和不確定性。請參閱本公司向美國證券交易委員會提交的最新 10-K 表格年度報告和 10-Q 表格後續季度報告的風險因素部分。

Harold's results may differ materially from those projected Harold disclaims any intention or obligation to update or revise any financial projections or forward-looking statements whether because of new information, future events or otherwise. This conference call contains time sensitive information and is accurate only as of today.

Harold 的結果可能與預測有重大差異 Harold 不承擔任何更新或修改任何財務預測或前瞻性聲明的意圖或義務，無論是由於新資訊、未來事件或其他原因。本次電話會議包含時間敏感訊息，僅截至今天準確。

Additionally, Harrow refer to non-GAAP financial metrics, specifically adjusted EBITDA and our adjusted earnings as well as core results such as core gross margin, core net income and core diluted net income per share.

此外，哈羅還參考了非公認會計準則財務指標、特別調整後的 EBITDA 和我們調整後的收益以及核心業績，例如核心毛利率、核心淨利潤和核心稀釋每股淨利潤。

A reconciliation of any non-GAAP measures with the most directly comparable GAAP measures is included in the company's earnings release and letter to stockholders. Both of which are available on the website by now. You should have received a copy of the earnings press release. If you have not received a copy, please go to the investor relations page of the company's website www.harrow.com.

任何非公認會計準則衡量標準與最直接可比較的公認會計準則衡量標準的調節都包含在公司的收益報告和致股東的信函中。目前，這兩者都可以在網站上找到。您應該已收到收益新聞稿的副本。如果您尚未收到副本，請造訪本公司網站 www.harrow.com 的投資者關係頁面。

Joining me on today's call are Harrow's Chief Executive Officer, Mark Baum and Harrow's Chief Financial Officer Andrew Boll.

參加今天電話會議的還有哈羅公學執行長馬克鮑姆 (Mark Ba​​um) 和哈羅公學財務長安德魯波爾 (Andrew Boll)。

With that, I'd like to turn the call over to mark to go over some prepared remarks prior to the question and answer session.

至此，我想將電話轉給馬克，以便在問答環節之前回顧一些準備好的發言。

Thanks Jamie and good morning to everyone. Thank you for joining us today. Please make sure to review our supplemental documents for the quarter including our earnings release, corporate presentation and letter to stockholders, all of which are available on the investor relations section of our website.

謝謝傑米，大家早安。感謝您今天加入我們。請務必查看我們本季度的補充文件，包括我們的收益發布、公司演示和致股東的信函，所有這些都可以在我們網站的投資者關係部分找到。

In the third quarter, they reported record revenue of $49.3 million and that's a 44% increase over the prior year quarter to slight increase over the previous quarter as well. Gross margins were solid and regenerated cash from operations and operationally while we could have done as I discussed in my letter to stockholders overall, we are well positioned to meet my commitment to exceed our 2024 financial guidance, especially given what looks like record performance in October and the fourth quarter, which is expected to be our strongest quarterly period of the year. Now, let's discuss some of our key products and achievements from the third quarter.

第三季度，他們的營收達到創紀錄的 4,930 萬美元，比去年同期成長 44%，比上一季略有成長。毛利率穩定，並從營運和營運中再生現金，雖然我們本可以做到，正如我在致股東的信中所討論的那樣，但我們完全有能力實現我超越2024 年財務指導的承諾，特別是考慮到10 月的業績似乎創紀錄第四季預計將是我們今年最強勁的季度。現在，讓我們來討論一下第三季我們的一些重點產品和成果。

BVI. Our Crown Jewel Dry Eye Asset which we launched in January of this year has surpassed our expectations and we believe it is destined to be a category leading product due to its rapid onset efficacy twice daily dosing and favorable tolerability profile. Total prescription volume increased 55% in the third quarter compared with the second quarter. As I mentioned in my letter to stockholders, our commercial team did such an excellent job of selling vivi that we reached the outer bounds of our internal forecasts leading to a temporary inventory shortage around mid September and our viva revenue potential. Therefore, for the third quarter was unfortunately capped. The good news is that we were able to recover in the fourth quarter. And we have appropriately adjusted our inventory levels by ordering additional batches so that we will not run out again. What drives vivi's strong sales growth is its clinical value, which is best demonstrated in the amazing refill rate. We have seen listen to this statistic before vivi 90% of patients did not refill their dry eye prescriptions and were not on therapy at the end of the year. However, viva patients are now into their 8th and 9th refills and we continue to see over 90% refill rates for VVI. It's just incredible payers are also taking note. And as a result, we are seeing consistent improvement in insurance formulary access for VBI and I talk more about that in our letter to stockholders. Strong V by prescription growth has led us to increase the number of covered territories where we have boots on the ground from 51 in the second quarter to 61 in the third quarter and in those 61 territories, even though we haven't filled all of those open positions, we are already beating T via in about 50% of these markets sequa in about a third of the markets and my b in nearly 10% of the markets as demand increases and we continue to increase our market share. We will also add territories as warranted.

英屬維京群島。我們在今年 1 月推出的 Crown Jewel 乾眼資產超出了我們的預期，我們相信，由於其每日兩次給藥的快速起效和良好的耐受性，它注定會成為該類別的領先產品。第三季總處方量較第二季增加55%。正如我在給股東的信中提到的，我們的商業團隊在銷售vivi 方面做得非常出色，以至於我們達到了內部預測的外部界限，導致9 月中旬左右出現暫時的庫存短缺以及我們的viva收入潛力。因此，第三節不幸被封頂。好消息是我們能夠在第四季復甦。我們透過額外訂購批次來適當調整我們的庫存水平，這樣我們就不會再出現缺貨的情況。推動vivi銷售強勁成長的是其臨床價值，這在驚人的補充率中得到了最好的體現。我們之前聽過這個統計數據，90%的患者沒有續配乾眼藥，年底也沒有接受治療。然而，viva 患者現在已進行第 8 次和第 9 次補充，我們繼續看到 VVI 的補充率超過 90%。令人難以置信的是，付款人也注意到了這一點。因此，我們看到 VBI 的保險處方准入持續改善，我在致股東的信中詳細討論了這一點。處方成長帶來的強勁 V 導致我們將實地覆蓋的地區數量從第二季度的 51 個增加到第三季度的 61 個，在這 61 個地區中，儘管我們尚未填補所有這些地區隨著需求的增加，我們已經在大約50% 的市場中擊敗了T via，在大約三分之一的市場中擊敗了T via，在近10% 的市場中擊敗了my b，並且我們繼續增加了我們的市場份額。我們還將根據需要添加地區。

Ihio continues to perform well too.

Ihio 也繼續表現出色。

In the third quarter, Ihio saw a 15% sequential increase in unit demand over the second quarter. And in addition, Ihi's reorder rate also was impressive at 82% unit demand has increased up and to the right every quarter, largely because eye care professionals are discovering that Ihio is not only an excellent clinical choice for their patients, but we also hear that it enhances their productivity by improving their procedural workflow that said in the third quarter with the advice and support of our commercial leadership. And after looking at the incredible opportunity before us, I made a strategic decision to implement what I have referred to in the letter to stockholders as the retina pivot, which is to say that our commercial team's call points moved nearly exclusively to the retina specialist community. There are numerous compelling reasons why I made this decision. It's because of the concentration of retina providers which allows us to have more ihes unit volume impact with fewer call points.

第三季度，Ihio 的單位需求比第二季度季增了 15%。此外，Ihi 的再訂購率也令人印象深刻，每季82% 的單位需求都在向右增長，這主要是因為眼科護理專業人士發現Ihio 不僅是其患者的絕佳臨床選擇，而且我們還聽說在我們商業領導層的建議和支持下，第三季表示，它透過改進程序工作流程來提高他們的生產力。在看到擺在我們面前的難以置信的機會之後，我做出了一個戰略決定，實施我在給股東的信中提到的視網膜樞軸，也就是說，我們的商業團隊的呼叫點幾乎完全轉移到視網膜專家社群。我做出這個決定有很多令人信服的理由。這是因為視網膜提供者的集中，使我們能夠以更少的呼叫點獲得更大的單位體積影響。

The intravital injection market is massive and growing and Ihio is an ideal clinical choice for ophthalmic anesthesia in this setting of care and beginning on July 1st of 2024 because we had clarity from C MS on reimbursement. Even for same day bilateral use cases, it just would have been foolish not to make this market our primary interest.

活體注射市場規模龐大且不斷增長，從 2024 年 7 月 1 日開始，Ihio 是這種護理環境下眼科麻醉的理想臨床選擇，因為我們從 C MS 獲得了報銷方面的明確信息。即使對於同一天的雙邊用例，不把這個市場當作我們的主要興趣也是愚蠢的。

I discussed the retina pivot more in the letter to stockholders but suffice it to say that this pivot may have resulted in a somewhat subdued demand for Ihio in the third quarter. As our sales folks focused on sales processes in the retina specialist community.

我在給股東的信中更多地討論了視網膜樞軸，但足以說明這一樞軸可能導致第三季對 Ihio 的需求有所減弱。因為我們的銷售人員專注於視網膜專家社群的銷售流程。

I am more than pleased though to report that we are already seeing the benefits of this retina pivot in the fourth quarter just as our commercial leadership predicted. And I am 100% convinced that this decision was the right one for not only 2024 but for 2025 and beyond.

不過，我非常高興地報告，正如我們商業領導層所預測的那樣，我們已經在第四季度看到了這種視網膜樞軸的好處。我 100% 相信這項決定不僅對於 2024 年而且對於 2025 年及以後都是正確的。

And as promised, the relaunch of Tri Essence has happened in the month of October following years of market absence, bringing Tri Essence back to the retina specialist community is yet another compelling reason for our retina pivot. The absence of tri Essence in the market created a backlog of demand for which there has been no on label alternatives. And we are working hard to make sure that everyone in that community knows that Tri Essence is back. We are convinced that our investment in tri essence will be richly rewarded. And I can tell you that today, I remain more convinced of this than ever.

正如承諾的那樣，Tri Essence 在市場缺席多年後於 10 月重新推出，將 Tri Essence 重新帶回視網膜專家社群是我們轉向視網膜的另一個令人信服的原因。市場上缺乏三元精華造成了需求積壓，但標籤上卻沒有替代品。我們正在努力確保社區中的每個人都知道 Tri Essence 回來了。我們相信，我們對三精的投資將會得到豐厚的回報。我可以告訴你，今天我比以往任何時候都更堅信這一點。

We also see the combination of Ihio and Trient as a powerful 12 punch enhancing our commercial team's ability to effectively serve the retina market.

我們也認為 Ihio 和 Trient 的組合將成為強大的 12 沖床，增強我們的商業團隊有效服務視網膜市場的能力。

Finally, other key parts of our business continue to perform and I would encourage you to review the letter to stockholders to see my latest commentary on our interior segment business and our infamous Rx business. We are happy to answer your questions. I will pause to have our operator pull for questions.

最後，我們業務的其他關鍵部分繼續表現良好，我鼓勵您閱讀致股東的信，以了解我對我們的內部業務和臭名昭著的 Rx 業務的最新評論。我們很樂意回答您的問題。我將停下來讓我們的接線生提問。

Operator.

操作員。

Thank you to ask a question. Please press star 1,1 on your telephone and wait for your name to be announced to withdraw your Question. Please press star 1,1 again. And our first question comes from chaies knickerbocker with Craig Hallum. Your line is now open.

謝謝你提出問題。請按電話上的星號 1,1 並等待您的名字被宣布以撤回您的問題。請再按星號 1,1。我們的第一個問題來自 Chaies Knickerbocker 和 Craig Hallum。您的線路現已開通。

Good morning. Thanks for taking the questions.

早安.感謝您提出問題。

Mark, I guess just first helpful to see you kind of give that inventory number that you have in Q4 on Tri essence. I mean, how should investors be thinking about the performance of that drug in Q4 with a little bit more detail around kind of what you think will need to be, you know, kind of stocked at distributors. And then ultimately, you know, how much of that kind of inventory do you think you can pull through before the end of the year? You know, given that the product has been off the market for so long? Thanks.

馬克，我想先看到你給出你在第四季度 Tri Essential 上的庫存數量是有幫助的。我的意思是，投資者應該如何考慮該藥物在第四季度的表現，並詳細了解您認為需要在分銷商處庫存的藥物。最後，你知道，你認為在年底前可以消耗多少這類庫存？你知道嗎，考慮到該產品已經退出市場這麼久了？謝謝。

Thanks for that case. Well, first I have some, I think very positive news about tri essence and that is that all of the regional Macs have indicated that they are reimbursing for tri es. So that is very important news. I would also say that the response thus far has been a very positive. I laid out as you noted in the stockholder letter, the inventory that we have to sell and what I can tell you is that the commercial team is just actively working to, to push that inventory through the system and into the system. So we can realize revenue as much revenue as possible from those units in the fourth quarter. And we have, you know, I think some, some very positive indications in terms of that inventory so far, but the team is working hard. And we're, we're as I said, I think emboldened by the response, at least from Medicare on the product specific J code thus far. Andrew. Do you want to add to that at all?

謝謝那個案例。好吧，首先我有一些關於 Tri Essential 的非常積極的消息，那就是所有地區 Mac 都表示他們正在補償 Tri es。所以這是非常重要的消息。我還要說，迄今為止的反應是非常正面的。正如您在股東信中指出的那樣，我列出了我們必須出售的庫存，我可以告訴您的是，商業團隊正在積極努力，將庫存推入系統並進入系統。因此，我們可以在第四季度從這些單位中實現盡可能多的收入。我認為到目前為止，我們在庫存方面有一些非常積極的跡象，但團隊正在努力工作。正如我所說，我們的反應讓我們更加大膽，至少是 Medicare 到目前為止對產品特定 J 代碼的反應。安德魯.你想補充一下嗎？

Yeah, chase, I think from our perspective too, you know, we're obviously early in the game with the relaunch. So a little early for us to give kind of more precise guidance on what we think, exact pull through will be. But the, the initial response has been great that the team is a big point for us at a EO in October when, when we came out. And I think the physicians, we were happy to see it back. Obviously, it's an important product in the market. We're really focused on also supplying, making sure that supply chain is, is set for the, for the duration of the for next year and well beyond. And so that is also another critical focus for us. We've got this initial stock and we're going to focus really on continuing to make sure supply is there so that there's no shortages for the market going forward.

是的，蔡斯，我認為從我們的角度來看，你知道，我們顯然還處於重新啟動的早期階段。因此，對於我們來說，為我們的想法提供更精確的指導還為時過早，確切的突破將會是。但是，最初的反應非常好，當我們在 10 月的 EO 上出來時，團隊對我們來說是一個重要的點。我認為醫生們很高興看到它回來。顯然，它是市場上的重要產品。我們真正關注的是供應，確保供應鏈在明年及以後的持續時間內做好準備。因此，這也是我們的另一個關鍵焦點。我們已經有了初始庫存，我們將真正專注於繼續確保供應充足，以便未來市場不會短缺。

And, and I, I do want to add, we do have additional batches being made and scheduled to be made in 2025. So, I think the issue that Andrew is referring to is just longer term supply.

而且，我確實想補充一點，我們確實正在生產更多批次，並計劃在 2025 年生產。所以，我認為安德魯所指的問題只是長期供應。

Got it. And just a confirmation question there, I guess on those batches you would expect to have more inventory next year, you know, in a material sense than, than you know, what you had in Q4 here for Tri Essence and then just a couple on, on VBI Mark, I'm sorry if I missed this. But can you quantify kind of what you guys think from a dollar perspective that disruption caused kind of in late Q3? And then a little bit more kind of color around that initial part D coverage that you were talking about in the recent press release and in the shareholder letter kind of any color there around kind of formulary management. Is there any step it's in there? What, what, what is that, what are those kind of contracts look like on the Medicare side?

知道了。只是一個確認問題，我想在這些批次中，您預計明年會有更多庫存，您知道，從物質意義上講，比您知道的第四季度 Tri Essence 的庫存還要多，然後只有幾個，關於VBI Mark，如果我錯過了這個，我很抱歉。但是，您能從美元的角度量化一下你們對第三季末造成的破壞的看法嗎？然後，圍繞您在最近的新聞稿和股東信中談論的最初的 D 部分報道，以及圍繞處方管理的任何顏色，有更多的色彩。裡面有步驟嗎？什麼，什麼，那是什麼，醫療保險方面的合約是什麼樣的？

Yes. So I think I and my phone went on mute but I think your question was around, you know, quantifying what the V by disruption was and then also kind of where we work on a qualitative basis with this Medicare part D contract. Is that right?

是的。所以我想我和我的手機都處於靜音狀態，但我認為你的問題是，你知道，量化中斷帶來的 V 是什麼，然後也是我們在定性基礎上與此 Medicare D 部分合約合作的地方。是這樣嗎？

That's correct.

這是正確的。

Okay. Yeah. So, I mean, look, if you, if you add up what we would have had with ZV eight and V by, you know, it's several million dollars of additional revenue and probably would have allowed us to meet revenue guidance from the external analysts. The good news is, is we're going to recapture that we are recapturing that revenue in the fourth quarter. So it was, as I, I think characterized it in my letter to stockholders, we view it as a bump. It's an unfortunate bump, but it's something that we had to deal with. Nevertheless, kind of a good problem to have if you're going to have any problem that the demand is so strong that it is outside of the bounds of your forecast. But we do take responsibility, we, we can do a better job, I think of forecasting. But the answer to your question is, is that it was several million dollars for the period in terms of the part D plans. That's a really great story because we're talking about a preferred brand position with one of the largest med D providers. So it's, it's not easy to get those sorts of positions. We're still working on additional agreements, but the response so far I think is better than we had anticipated and we're getting these contracts in place before we thought we would get them in place. So we're doing well there and I think, you know, we should expect additional coverage arrangements in, in the fair year term. Andrew. Do you want to add to that at all?

好的。是的。所以，我的意思是，如果你把 ZV 8 和 V 的收入加起來，你知道，這是數百萬美元的額外收入，可能會讓我們達到外部分析師的收入指引。好消息是，我們將在第四季重新獲得收入。因此，正如我在給股東的信中所描述的那樣，我們認為這是一個障礙。這是一個不幸的碰撞，但這是我們必須應對的事情。然而，如果您遇到需求如此強勁以至於超出您的預測範圍的問題，那麼這是一個好問題。但我們確實承擔責任，我們，我們可以做得更好，我想到了預測。但你的問題的答案是，就 D 部分計劃而言，這段期間的費用為數百萬美元。這是一個非常精彩的故事，因為我們正在談論與最大的醫療 D 提供者之一的首選品牌地位。所以，要獲得這些職位並不容易。我們仍在製定其他協議，但我認為到目前為止的反應比我們預期的要好，並且我們在我們認為會落實這些合約之前就已經落實了這些合約。所以我們在那裡做得很好，我認為，你知道，我們應該期待在公平年度內有額外的承保安排。安德魯.你想補充一下嗎？

Not seen that.

沒見過那個。

Great. And then just one confirmation I'll hop back into you guys. Sorry for all the questions. But just on V by at the eight months on that 91% refill rate that you mentioned is that kind of from first fill. And so just, I guess that's another way that would be kind of like two or three X kind of what we would think of from kind of competitive dry eye kind of discontinuation rates, kind of improvement there. Can you just confirm that I'm, I'm looking at that number, right.

偉大的。然後只要一確認我就會回到你們身邊。抱歉提出所有問題。但就在 V by 的八個月裡，您提到的 91% 的補充率就是從第一次填充開始的那種情況。所以，我想這是另一種方式，類似於我們從競爭性乾眼症停藥率中想到的兩到三個X，那裡有某種改善。你能確認一下我正在看那個數字嗎？

Andrew can comment on, on, on that and I, I would just say by the way, I mean, VVI conservative conservatively next year is set to way more than double. That's if we don't do much of anything. So it's a really exciting product. And I think also we're, we're slated to capture more and more of that revenue next year as we get more contracting done, which is very exciting as, as our ASP hopefully improves Andrew. Do you want to comment on? Yeah, yeah.

安德魯可以對此發表評論，我只是順便說一句，我的意思是，保守保守的 VVI 明年將增加一倍以上。如果我們不做太多事情的話。所以這是一個非常令人興奮的產品。我認為，隨著我們完成更多的合同，明年我們預計將獲得越來越多的收入，這是非常令人興奮的，因為我們的平均售價有望提高安德魯。你想發表評論嗎？是啊是啊。

So the, the refill rate is based on patients eligible for that refill.

因此，補充率取決於符合補充資格的患者。

And so if they're, in other words, if they're eligible for their 10th refill, we're seeing, you know, that large portion of patients refill. And, and I, I think for the last two calls I've been, I said how excited I am about that refill rate because for us, I mean, from a modeling perspective, it is well beyond what we expected. And definitely well beyond what we model, that's, that's one of the reasons that we have that inventory shortage issue in the last couple, couple weeks of September. But it's some shareholders should be really excited about. It's going to drive a ton of value, I think in next year and certainly in the long term because those refills are just continuing to stack. The, the product is really performing well, performing better than we expected from a clinical perspective and certainly from a financial perspective. And it continues for me as CFO to be my favorite product, it's something I want to continue to invest in on the sales and marketing side. And really just see the see revenues from that product scale up and, and, and drive further value in the medium and long term.

因此，換句話說，如果他們有資格獲得第十次續藥，我們會看到很大一部分患者會續藥。而且，我想，在過去的兩次電話會議中，我說我對這個補充率感到非常興奮，因為對我們來說，我的意思是，從建模的角度來看，它遠遠超出了我們的預期。絕對遠遠超出了我們的模型，這就是我們在 9 月的最後幾週出現庫存短缺問題的原因之一。但有些股東應該對此感到非常興奮。我認為明年，當然從長遠來看，這將帶來巨大的價值，因為這些補充品正在繼續堆積。該產品確實表現良好，從臨床角度和財務角度來看，其表現都比我們預期的要好。作為財務長，它仍然是我最喜歡的產品，我想繼續在銷售和行銷方面進行投資。實際上，只要看到該產品的收入規模擴大，並在中長期內推動進一步的價值。

Great. Thanks guys.

偉大的。謝謝你們。

Thanks Chase.

謝謝蔡斯。

And the next question comes from Brooks o'neil with Lake Street Capital. Your line is now open.

下一個問題來自 Lake Street Capital 的布魯克斯·奧尼爾。您的線路現已開通。

Good morning guys.

早安，夥計們。

So I have a couple quick questions first. Just curious if you'd provide any additional color on summer seasonality. I think you called that out as a factor that maybe normally limits results in Q3, but any color would be helpful.

我首先有幾個簡單的問題。只是好奇您是否願意提供有關夏季季節性的任何其他顏色。我認為您將其稱為通常可能限制第三季結果的因素，但任何顏色都會有幫助。

Sure, the, since we began producing revenue, you know, back in 2014, because a lot of our revenue was dependent on surgical scheduling. The summer months are always the weakest months. And that's not only true for our business, but really you know, any, any drug company or device company that that sells into those markets. So in the summertime patients go on vacation, doctors go on vacation, staff goes on vacation. And so there there is always a reduced number of surgical openings.

當然，自從我們在 2014 年開始產生收入以來，因為我們的大部分收入都依賴手術安排。夏季總是最弱的月份。這不僅適用於我們的業務，也適用於任何向這些市場銷售產品的製藥公司或設備公司。所以夏天病人去度假，醫生去度假，工作人員去度假。因此，手術開口的數量總是會減少。

Makes sense. Let me just ask you one other one that Is, you Know, I appreciate all the color you gave on, on VBI and Izo and Tri. And as you take a step back and think about the launches of each of those products and, and the response in the marketplace, is there anything you'd call out that worries you that strikes you as that. That's not what we hope for. That's not what we expected kind of thing beyond the, the color you've offered so far. Thank you very much for taking my questions.

有道理。讓我問你另一個問題，你知道，我很欣賞你在 VBI、Izo 和 Tri 上所提供的所有顏色。當您退一步思考每個產品的推出以及市場的反應時，您會發現有什麼讓您擔心的事情讓您感到震驚。這不是我們所希望的。這不是我們所期望的，超出了您目前提供的顏色範圍。非常感謝您回答我的問題。

Sure.

當然。

I think with any launch things go your way many times and then there are always things that don't go your way. That just happens. I think with Ihio, there have been a number of challenges over the last, you know, year and a half or so. I'm really excited about where we stand right now. I mean, the product is on track next year. I mean, it is heading towards being a nine figure revenue product in short order. That's what we promised and that's what looks like is happening. And that's a good thing. We have absolute clarity on the reimbursement side. Now, that's very positive. We didn't have that when we launched. So in many ways, I would say things didn't go perfectly out of the gate. But the team has done such an extraordinary job of positioning the product now for many years into the future. Our stockholders, I think should be really excited about Ihio Viba, as Andrew said, he's incredibly enthusiastic about it and he should be because once patients start using this product, it looks like they continue to use it, they continue to refill it. And as I've said, many times over the years, the value of products like Vivi is really on the refill. It's the chronic use of the product without having to invest further in sales and marketing. That's how you get the economic compounding effect taking place for chronic pharmaceutical products like Vivi.

我認為任何發布都會有很多次事情按你的方式進行，但總是會有一些事情不照你的方式進行。那就是發生了。我認為 Ihio 在過去一年半左右的時間裡遇到了許多挑戰。我對我們現在的處境感到非常興奮。我的意思是，該產品明年將步入正軌。我的意思是，它很快就會成為收入達到九位數的產品。這就是我們的承諾，而且看起來正在發生。這是一件好事。我們在報銷方面有絕對的明確性。現在，這是非常積極的。我們剛推出的時候還沒有這個。所以從很多方面來說，我想說事情不是一開始就完美的。但團隊在將產品定位到未來許多年方面做得非常出色。我認為我們的股東應該對 Ihio Viba 感到非常興奮，正如安德魯所說，他對此非常熱情，他應該如此，因為一旦患者開始使用該產品，看起來他們會繼續使用它，他們會繼續補充它。正如我所說，多年來，像 Vivi 這樣的產品的價值確實在於補充裝上。這是長期使用該產品，而無需進一步投資於銷售和行銷。這就是 Vivi 等慢性藥品產生經濟複合效應的方式。

And then finally, I would say with, with tri essence, you know, right now, and I can tell you once again, some things have gone absolutely as we expected and some things have not. But it's really important to note that our team when we launch something or take a particular action, we not only have a primary action but we have secondary and tertiary strategies behind them because you have to anticipate that not everything is going to go your way. We've seen that happen with Tris. We actually have a really exciting life cycle management strategy for that product. As I've said on these calls, I think in the past, our expectation is that we want to be able to sell more trient in 2035 than we do in 2025. So our stockholders should count on the fact that we have a life cycle management strategy that will be implemented to affect what I'm saying. And I think that means that we should be able to over the longer term, realize the value from these products that we had expected and that we've promised to our stockholders over the last year and a half or so

最後，我想說的是，從本質上講，你知道，現在，我可以再告訴你，有些事情完全按照我們的預期進行，有些事情卻沒有。但值得注意的是，我們的團隊在啟動某件事或採取特定行動時，不僅有主要行動，而且背後還有二級和三級策略，因為你必須預見到並非所有事情都會按你的方式進行。我們已經在 Tris 身上看到過這種情況。實際上，我們對該產品有一個非常令人興奮的生命週期管理策略。正如我在這些電話會議中所說的那樣，我認為在過去，我們的期望是我們希望能夠在 2035 年銷售比 2025 年更多的 Trient。因此，我們的股東應該相信我們擁有生命週期管理策略，該策略的實施將影響我所說的內容。我認為這意味著我們應該能夠從長遠來看，實現我們所期望的這些產品的價值，以及我們在過去一年半左右的時間裡向股東承諾的價值

Makes total sense Let.

完全有道理讓。

Me just slip in one more. I thought of it as you were talking. You, you've commented on the pivot, the Azo pivot, I think it was. Do you have plans to go back and, and try to capture the opportunity in the ophthalmic and cataract surgery areas or how are you thinking about that now?

我就再塞進去一張。你說話的時候我就想到了。你，你已經評論了樞軸，偶氮樞軸，我認為是的。您是否有計劃回去並嘗試抓住眼科和白內障手術領域的機會，或者您現在對此有何想法？

Yeah. First of all, we're not abandoning that, that market. We have quite a few Ihio customers in those markets and we'll, we'll continue to service those customers without question. But when you take a look at what I've said regarding how do you get to a billion dollars of revenue by the end of 2027 on a revenue run rate basis during one of those quarterly periods, one of the things we need is significant revenue from Ihio. And I discussed that in the letter to stockholders, we've penciled in about $75 million of quarterly revenue from that product.

是的。首先，我們不會放棄那個市場。我們在這些市場上有相當多的 Ihio 客戶，我們將毫無疑問地繼續為這些客戶提供服務。但是，當你看看我所說的關於如何在其中一個季度期間以收入運行率為基礎在 2027 年底之前實現 10 億美元的收入時，我們需要的事情之一就是大量收入來自伊希奧。我在給股東的信中談到，我們已經從該產品中獲得了約 7,500 萬美元的季度收入。

And what does that mean? That means that we need to capture about six or 7% of the intravital injection market for Ihio.

這意味著什麼？這意味著我們需要佔領 Ihio 大約 6% 或 7% 的活體注射市場。

And so it just makes sense given what we're trying to accomplish by 2027 to really laser focus on that specific market. Does that mean we're not going to have any units sold into the cataract surgery market? No, You can expect that we'll, we'll probably sell into that market even by that date, even if it's not reimbursed in the a sc environment. But because we have such clarity on in office reimbursement, that's really where we need to focus. We have a permanent J code and we have clarity of reimbursement in the office setting. And there are just more than 10 million annual procedures that take place there and we have an ideal product that is gaining traction and that is producing a lot of value not only clinically but also I think for our stockholders.

因此，考慮到我們想要在 2027 年之前實現真正專注於該特定市場的目標，這是有道理的。這是否意味著我們不會向白內障手術市場出售任何設備？不，您可以預期，即使到了那個日期，我們也可能會向該市場出售產品，即使在 SC 環境中沒有得到補償。但因為我們對辦公室報銷非常明確，所以這確實是我們需要關注的地方。我們擁有永久的 J 代碼，我們在辦公室環境中擁有明確的報銷資訊。那裡每年進行的手術量超過 1000 萬例，我們擁有一種理想的產品，它正在獲得越來越多的關注，不僅在臨床上而且我認為也為我們的股東創造了很多價值。

Great. Thank you very Much.

偉大的。非常感謝。

And the next question comes from Jeffrey Cohen with Ladenberg Thalmann and company. Your line is open.

下一個問題來自傑弗裡·科恩 (Jeffrey Cohen) 和拉登伯格·塔爾曼 (Ladenberg Thalmann) 等人。您的線路已開通。

Hey, Mark and Andrew, good morning. I guess you did talk about the, the size of the organization in commercial for BEVA. I wanted to kind of jump that over to a HEO RYC. Could you give us at least some, some relative metrics on size if those folks out there are selling both a heo ry Essence and maybe talk about we're driving into OpEx going forward and how you're thinking about ramping that up.

嘿，馬克和安德魯，早安。我想您確實在廣告中談到了 BEVA 的組織規模。我想將其轉移到 HEO RYC。如果那些人正在銷售一種令人驚嘆的精華，您能否至少給我們一些有關規模的相對指標，也許可以談談我們正在推動營運支出的發展，以及您如何考慮提高這一點。

Sure, thanks for that, Jeff. To be clear, the team that is selling Ihio is also the same team that is selling Triesence. So they now have two products in their bag. Our strategic accounts team is is also selling both products obviously and what we're working on, I think to make our, our efforts even more potent, our new GPO relationships outside of even our sales organization where we can efficiently reach very large segments of the market and particularly that's true with strategic accounts. So we have a small but very mighty sales organization moving Ihio and tri Essence. And as I said, that team, which is extraordinarily experienced, coupled with these new relationships that we're bringing on, which I also talked about or mentioned in the letter to stockholders are really going to set us up. Well, not only for the fourth quarter, but also for 2025 and beyond Andrew. Do you want to comment on, the balance of the question?

當然，謝謝你，傑夫。需要明確的是，出售 Ihio 的球隊也是出售 Triesence 的同一支球隊。所以他們現在包包裡有兩種產品。我們的策略客戶團隊顯然也在銷售這兩種產品以及我們正在從事的工作，我認為為了使我們的努力更加有效，我們新的GPO 關係甚至在我們的銷售組織之外，我們可以有效地接觸到非常大的細分市場市場，尤其是策略客戶。因此，我們有一個規模雖小但非常強大的銷售組織，負責銷售 Ihio 和 tri Essence。正如我所說，這個經驗豐富的團隊，加上我們正在建立的這些新關係，我在致股東的信中也談到或提到過，這確實會讓我們建立起來。嗯，不僅是第四季度，而且是 2025 年及以後安德魯。您想對問題的平衡發表評論嗎？

Yes. Yeah, Jeff on, on the operating expense side. So we're, you know, the approach, it's typically we take kind of a moderated approach where we're, we're trying to make sure the business is profitable while we're still in that growth mode, the operating infrastructure, the, the G&A part of SG&A is really there, it's in place for the most part. So any investment further in operating expenses is going to be tied primarily to the commercial side. And we'll continue to do that as revenues ramp as market access improves on V by. You should see us continue to invest in the sales and marketing and market access type activities to further drive revenue and further drive growth. So all those important part about that really is that those expenses should be tied to the correlating revenue increase as well. So the overall profitability of the company as we as we grow up, X will continue to expand in, in 2025 and in out years.

是的。是的，傑夫，在營運費用方面。所以，你知道，我們的方法通常是採取一種適度的方法，我們試圖確保業務盈利，同時我們仍處於增長模式，運營基礎設施， SG&A 的 G&A 部分確實存在，而且大部分已經就位。因此，任何對營運費用的進一步投資都將主要與商業方面掛鉤。隨著 V by 市場准入的改善，收入不斷增加，我們將繼續這樣做。您應該看到我們繼續投資於銷售和行銷以及市場准入類型的活動，以進一步推動收入並進一步推動成長。因此，所有這些重要的部分實際上是這些支出也應該與相關的收入成長掛鉤。因此，隨著我們的成長，X 公司的整體獲利能力將在 2025 年以及未來幾年繼續擴大。

Okay. Got it. That's helpful. And then one more, if I may, we haven't heard about it in a while. Any commentary or thoughts on how everything is going at information, please.

好的。知道了。這很有幫助。然後，如果可以的話，我們已經有一段時間沒有聽說過這件事了。請對資訊中的一切進展發表任何評論或想法。

Andrew. Do you want add a comment about implements? I think business is doing really well. It's producing a lot of cash, that's for sure.

安德魯.您想添加有關工具的評論嗎？我認為生意做得非常好。它正在產生大量現金，這是肯定的。

Yeah. And, and Jeffrey, we added a new disclosure in the queue where we broke out segments. So you can kind of get an idea of profitability of of the infamous business as well as our, our, our branded business and how those, those two things are performing on an individual level. But we've been really pleased with, with how the infor business has been operating this year, summer months are traditionally slow as Mark mentioned. But despite that, it's continuing to see improvement, we really see a pathway especially in 2025 to see that double digit revenue growth that we've talked about in the past hitting. Definitely seeing new accounts get added there and and continue to see, you know, a real market need for, for the products and seeing market and seeing even new products come to market. We launched a new product called Toca at A al and we're seeing initial uptake there is and customer reception has been really positive.

是的。而且，傑弗裡，我們在隊列中添加了一個新的披露，我們在其中細分了片段。因此，您可以了解臭名昭著的業務以及我們的品牌業務的盈利能力，以及這兩件事在個人層面上的表現如何。但我們對資訊業務今​​年的營運感到非常滿意，正如馬克所提到的，夏季月份傳統上進展緩慢。但儘管如此，它仍在繼續改善，我們確實看到了一條途徑，特別是在 2025 年，我們將看到我們過去談到的兩位數收入成長。肯定會看到新的帳戶在那裡添加，並且繼續看到，你知道，產品的真正市場需求，看到市場，甚至看到新產品進入市場。我們在 A al 推出了一款名為 Toca 的新產品，我們看到了初步的應用，並且客戶反應非常積極。

Super. Thanks for taking our questions.

極好的。感謝您回答我們的問題。

Thank you Joe.

謝謝喬。

As a reminder to ask a question, press star 1,1 on your telephone. The next question comes from myank Tony with B Riley Securities. Your line is now open.

作為提問提醒，請按電話上的星號 1,1。下一個問題來自 B Riley 證券公司的 myank Tony。您的線路現已開通。

Good morning team. Thanks for taking the questions and appreciate the four Q trend update that's helpful. Just quickly on the VY script volume and market share trends that look impressive. Could you talk a bit more on what you're doing to improve gross and net based on our ma map, you know, you're trending a third lower than AP dry eye launch. Anything there to comment on related to your commercial payer coverage goals or how might, how you might be investing in access payer efforts and, and also should we see some D DC activity from you as we've seen from, from your peers and then I have a couple of quick follow ups.

早上好，團隊。感謝您提出問題並感謝四問趨勢更新，這很有幫助。快速了解看起來令人印象深刻的 VY 腳本量和市場份額趨勢。您能否根據我們的 MA 地圖多談談您正在採取哪些措施來改善總收入和淨收入，您知道，您的趨勢比美聯社乾眼症發射低三分之一。任何需要評論的內容都與您的商業付款人覆蓋目標有關，或者可能如何，您可能如何投資於接入付款人的努力，以及我們是否應該看到您的一些D DC 活動，就像我們從您的同行那裡看到的那樣，然後我有幾個快速跟進。

Sure, thanks for the question. Let me start by commenting on the DTC effort. And the answer is absolutely not, you will not see us investing in DTC. That said we really appreciate the investments that we are seeing in DTC because they are definitely increasing awareness of dry eye disease. And when you have a product like V by that is so effective and that patients appreciate so much they refill at the rates that we're seeing. You just really want as much awareness, consumer awareness in particular about the condition. So we're not going to invest there, but I think we're going to benefit there. Which is terrific. I also want to add that the market access team that's working on viva is doing an extraordinary job. We took a look at the gross this last quarter and we just are seeing, you know, a massive number, especially for a new launch and a very small on a relative basis, sales organization. So very, I think, efficient team, you know, doing a lot of building a lot of revenue question is, is how do we get more and more of that revenue? We're going to do that through obviously contracting. There is a lot of interest on the payer side with the product because of the refill rate because of what is is being seen clinically.

當然，謝謝你的提問。首先讓我評論一下 DTC 的工作。答案絕對不是，你不會看到我們投資DTC。也就是說，我們非常感謝 DTC 的投資，因為它們確實提高了人們對乾眼症的認識。當你擁有像 V by 這樣的產品時，它非常有效，而且患者非常欣賞，他們會以我們看到的價格補充。你真的想要盡可能多的意識，特別是消費者對這種情況的意識。所以我們不會在那裡投資，但我認為我們會在那裡受益。這太棒了。我還想補充一點，致力於 viva 的市場准入團隊做得非常出色。我們查看了上個季度的總收入，我們發現，你知道，這個數字很大，特別是對於新產品和相對而言非常小的銷售組織。我認為，非常有效率的團隊，你知道，做了很多工作，創造了大量收入，問題是，我們如何獲得越來越多的收入？我們將透過明顯的合約來做到這一點。由於臨床上所觀察到的補充率，付款人對該產品很感興趣。

But what I can tell you is that on a net basis and that's really what our stockholders care a lot about is not only the refill rate, but what are we capturing on a per prescription basis? There is a significant oh amount of revenue per unit that we can capture by tweaking a few little things. And those efforts underway right now. And I think over the next couple of quarters, we have the ability to very meaningfully improve our ASP and that's what we're going to do. I think our stockholders can count on us to do that. That's not only going to improve revenue, but it's going to improve margins as well for the product. Andrew. Do you want to add to that?

但我可以告訴你的是，在淨值基礎上，我們的股東真正關心的不僅是補充率，還有我們在每個處方的基礎上捕獲的是什麼？我們可以透過調整一些小事情來獲得大量的單位收入。這些努力現在正在進行中。我認為在接下來的幾個季度中，我們有能力非常有意義地提高我們的平均售價，這就是我們要做的。我認為我們的股東可以信賴我們能夠做到這一點。這不僅會提高收入，還會提高產品的利潤率。安德魯.你想補充一下嗎？

Yeah, that from a gross to net perspective this year, especially on the launch side, we really have been focused on volume and getting volume and getting patients on therapy and getting doctors introduced to the product that that said next year and beyond, as we gain more access, as Mark was saying that gross and that should continue to improve. And then importantly, I think as access improves, obviously, you should also help drive volume. So we should get a double benefit. As those things start coming online.

是的，從今年整體到淨的角度來看，尤其是在發布方面，我們確實一直專注於銷量和獲得銷量，讓患者接受治療，讓醫生了解明年及以後所說的產品，因為我們獲得更多的訪問權限，正如馬克所說，這很糟糕，而且應該繼續改進。然後重要的是，我認為隨著訪問的改善，顯然，你也應該幫助提高銷售量。所以我們應該得到雙重好處。隨著這些東西開始上線。

Very helpful and and then on the Triac relaunch at a AO I know it's early but are there, is there any overlap in patients and procedures where you, you see use of both adhesive and and, and triac and, and, and similar question is there a net price you, you expect for a trial that you know, based on your early discussions? II, I know the, the grossing net for AIS for example, is that training at 70%. So is the expectation trial would also be in that same range?

非常有幫助，然後關於在AO 重新啟動三端雙向可控矽開關，我知道現在還早，但確實存在，患者和程序中是否有重疊，您看到使用粘合劑和，以及三端雙向可控矽開關和，以及類似的問題是根據您的早期討論，您期望進行一次試驗的淨價格是多少？II，我知道，以 AIS 為例，訓練的總收入是 70%。那麼預期試驗也會在同一範圍內嗎？

Yeah, so 1st, 1st thing we're not going to really comment on sort of net pricing for Triac right now, we're actually still completing that work. But with respect to the first part of the question, what I can tell you is at least like on a GPO basis, we're moving both products together. And so, you know, you can create a sort of retina specialist formulary. And that's one of the real big positives about having both IUO and trient.

是的，所以第一，第一件事我們現在不會真正評論 Triac 的淨定價，我們實際上仍在完成這項工作。但關於問題的第一部分，我可以告訴您的是，至少在 GPO 的基礎上，我們正​​在將這兩種產品放在一起。所以，你知道，你可以創建一個視網膜專家處方集。這是同時擁有 IUO 和 Trient 的真正巨大積極因素之一。

I think we're one of the only companies in the Omic Pharma market may even be the only company that actually has two products to sell into that market, which is exciting.

我認為我們是 Omic Pharma 市場上僅有的公司之一，甚至可能是唯一一家實際上有兩種產品可銷往該市場的公司，這令人興奮。

Oh, okay. And, and lastly, I noticed a bit more color on mail 300 in, in your shareholder letter including the bar reached with FDA recently. And and the phase three readout is obviously expected shortly. How should we think about value creation from that? And thanks for taking our questions.

哦好的。最後，我注意到你們的股東信函中的 300 號郵件中的顏色有所增加，包括最近與 FDA 達成的標準。第三階段的讀數顯然預計很快就會公佈。我們該如何思考由此創造的價值？感謝您回答我們的問題。

Thank you, Mike. I believe that by this time next week, we're going to know where we stand with melt in terms of the phase three data.

謝謝你，麥克。我相信，到下週的這個時​​候，我們將知道我們在第三階段數據方面的融化。

So my expectations are that the phase three data will read out early next week and that there'll be some sort of external communication regarding that by this time next week, in terms of value creation for me, we are very interested in that product, obviously, as I've said, in, in prior communications, we sell a compounded version of the melt formulation.

所以我的期望是，第三階段的數據將於下週初讀出，到下週這個時候，將會有某種外部溝通，就為我創造價值而言，我們對該產品非常感興趣，顯然，正如我在先前的溝通中所說，我們銷售的是熔融配方的複合版本。

And you know, if we were able to sell an FDA approved version of that product, it would result in nearly $100 million of annual revenue. So we know who those customers are that use the compounded formulation. And I have a high degree of confidence they would prefer to use an FDA approved version of the product.

您知道，如果我們能夠銷售 FDA 批准的該產品版本，那麼年收入將接近 1 億美元。因此我們知道使用複合配方的客戶是誰。我非常有信心他們更願意使用 FDA 批准的產品版本。

And so as I said, it creates sort of a as much of a no brainer commercial launch as you could possibly have. That's something we're really attracted to, but all of that is premature unless we have a positive readout. And so we'll hopefully know more about that this time next week. If the data is strong, the data comes through, especially given the spa that the company was able to reach with FDA will be well positioned to do great things with that, that patented formulation, it's patented, not only domestically, it's patented internationally. It has uses certainly an ophthalmology where we're focused, but the greater number of use cases is outside of ophthalmology. And it's going to be a big product, but we need to see what the data looks like. And if we were to fast forward a week from now, we will know.

正如我所說，它創造了一種盡可能簡單的商業發布。這是我們真正感興趣的事情，但除非我們有積極的結果，否則所有這些都為時過早。因此，我們希望下週這個時候能了解更多。如果數據有力，數據就會通過，特別是考慮到該公司能夠與FDA 聯繫的水療中心將處於有利地位，可以利用該專利配方做出偉大的事情，它不僅在國內，而且在國際上都獲得了專利。它確實用於我們關注的眼科領域，但更多的用例是在眼科領域之外。這將是一個大產品，但我們需要看看數據是什麼樣的。如果我們快轉一周後，我們就會知道。

That's all the time that we do have for questions. And I would like now to turn it back to mark for closing remarks.

這就是我們提問的時間。現在我想將其轉回標記以供結束語。

Sure. Thank you, operator and thanks for, joining Us today

當然。謝謝您，運營商，感謝您今天加入我們

Just want to reiterate how grateful we are for your continued support and trust in the company as we execute on this vision. It's not a short term vision. It's a long term vision. I think we have a pretty good record of creating value over the longer term. It's a really exciting time to be a part of our journey though. Whether you're an investor, a customer, a partner, a member of the Harrow family, the progress and achievements that we've made this year. A testament to the team's hard work and dedication, the partnerships that we've built along the way. And as we move towards the very end of this year, which I believe is, is going to certainly be a record year. Our focus is going to be delivering sustainable growth, operational excellence and importantly value for all of our stockholders and stakeholders. So if you have any other questions or you need additional information.

只是想重申，我們非常感謝您在我們實現這一願景的過程中對公司的持續支持和信任。這不是一個短期願景。這是一個長期願景。我認為我們在長期創造價值方面有著良好的記錄。不過，成為我們旅程的一部分確實是一個令人興奮的時刻。無論您是投資者、客戶、合作夥伴、哈羅大家庭的一員，都在關注我們這一年所取得的進步和成就。這證明了團隊的辛勤工作和奉獻精神，以及我們一路建立的合作關係。隨著我們接近今年年底，我相信這肯定會是創紀錄的一年。我們的重點是為所有股東和利害關係人提供永續成長、卓越營運以及重要的價值。因此，如果您有任何其他問題或需要更多資訊。

Don't hesitate to. Reach out to Jamie Webb. Her email address is JWEBB at harrowinc.com. This will conclude our call.

不要猶豫。聯絡傑米·韋伯。她的電子郵件地址是 harrowinc.com 上的 JWEBB。我們的通話到此結束。

Thank you so much for participating. This does conclude the call. You may now disconnect.

非常感謝您的參與。這確實結束了通話。您現在可以斷開連線。