Harrow (Nasdaq: HROW), a leading U.S. eyecare pharmaceutical company, today announced the closing of its previously announced acquisition of the exclusive U.S. commercial rights to five branded ophthalmic products: Ilevro, Nevanac, Vigamox, Maxidex, and Triesence.
Pursuant to the terms of an asset purchase agreement, Harrow paid $130 million at closing, with an additional milestone payment due upon the commercial availability of Triesence.
Harrow and the seller have entered into an estimated six-month transition period during which the seller will continue to sell the products in the U.S. and transfer all net profits from the products to Harrow.
During the transition period, the product NDAs will be transferred to Harrow. Upon the transfer of a product new drug application (NDA), Harrow will assume control over all U.S. market activities for the subject product.
Harrow expects these products to be immediately financially accretive and reaffirms 2023 guidance of $135 million to $143 million in net revenues and $44 million to $50 million in adjusted EBITDA.
Harrow believes that both net revenues and adjusted EBITDA should grow further during 2024 and for at least three to five years thereafter.