Harrow Health Inc (HROW) stock soared 5.21% on Wednesday during the pre-market session, outpacing the broader market rally. The surge came after promising Phase 3 trial results from Melt Pharmaceuticals, a company that was previously spun off from Harrow in 2019.

Melt Pharmaceuticals announced positive topline efficacy data from its pivotal Phase 3 study evaluating MELT-300, a non-IV, non-opioid sedative tablet combining midazolam and ketamine. The trial demonstrated that MELT-300 was statistically superior to both sublingual midazolam and placebo in providing successful procedural sedation for patients undergoing cataract surgery. Notably, MELT-300 exhibited a favorable safety profile generally comparable to placebo.

While Melt Pharmaceuticals is now an independent company, its positive trial results appear to have fueled investor optimism around Harrow Health. If MELT-300 gains FDA approval based on these data, it could offer an attractive non-opioid alternative for the over 5 million cataract surgeries performed annually in the U.S. This potential market opportunity has traders speculating on potential financial benefits for Harrow stemming from its previous ownership of Melt Pharmaceuticals.