Harrow Health Shares Surge on Key Reimbursement Victory

Harrow Health US4158581094

Harrow Health's equity is experiencing significant momentum following a pivotal strategic achievement. The ophthalmology-focused pharmaceutical company has secured a Tier 1 preferred formulary placement for its dry eye treatment, VEVYE, with the major pharmacy benefit manager CVS. This development dramatically improves insurance coverage for millions of patients and has fueled a robust recent performance for the stock.

This formulary win, announced last Friday, represents a major commercial breakthrough. VEVYE is set to replace the competing product Xiidra on the CVS list. Analysts expect this enhanced positioning with a major payer to substantially accelerate prescription volumes and market access for VEVYE starting in January 2026. The news has provided a fresh catalyst, contributing to a 30-day return exceeding 29%.

This positive development builds upon already strong quarterly results released in November. At that time, Harrow Health significantly surpassed earnings expectations and raised its full-year revenue guidance to a range of $270 million to $280 million. Company leadership highlighted VEVYE as a primary growth driver, noting its demand surged 47% compared to the same quarter last year.

Strategic Pipeline Expansion and Analyst Sentiment

Beyond its core commercial operations, Harrow Health is strategically broadening its portfolio. In November, the acquisition of Melt Pharmaceuticals brought the drug candidate MELT-300 into the company's pipeline. This asset is being developed for procedural sedation without the use of opioids, with a New Drug Application (NDA) submission to the FDA planned for the first half of 2027.

Furthermore, the commercial launch of another ophthalmology product, BYQLOVI, is scheduled for this current quarter.

Market experts maintain a favorable outlook on the company. The average price target from ten brokerage firms stands at approximately $71.43, indicating considerable upside potential from current trading levels. This assessment reflects confidence in Harrow Health's strategic acquisitions, its development pipeline, and its effective commercialization strategy. Key near-term milestones include the imminent launch of BYQLOVI and the anticipated revenue acceleration for VEVYE beginning in January 2026.