Release Date: March 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you explain the significant improvement in VEVYE's gross-to-net revenue and the factors driving this change? A: Mark Baum, CEO: VEVYE's revenue more than tripled, with a considerable improvement in ASP due to changes in business rules and fewer copay buy downs. The demand also increased significantly. The VEVYE Access for All program is expected to further boost growth and improve ASP, making the recent improvements just the beginning of what we anticipate for this year.
Q: What impact do you expect the VEVYE Access for All program to have on prescriptions and market access? A: Mark Baum, CEO: The program ensures access for all patients, regardless of insurance status, by reducing costs and logistical barriers. It aims to expand the prescription market and increase Harrow's market share. The program is expected to drive significant growth in prescription volumes and improve ASP.
Q: Can you provide guidance on SG&A growth and cash flow conversion for 2025? A: Andrew Boll, CFO: SG&A growth should be modeled based on the second half of 2024, with variable expenses tied to revenue increases. We expect significant operating leverage in 2025. Most EBITDA will convert to cash flow, with some impact from interest expenses and taxes.
Q: What are the strategic plans for TRIESENCE, and how will it contribute to revenue growth? A: Mark Baum, CEO: TRIESENCE is positioned for significant growth, especially with CMS reimbursement approval. We are investing in supply chain and lifecycle management, including developing a next-generation version. We expect TRIESENCE to play a more substantial role in revenue and profit growth starting in Q2 2025.
Q: How does Harrow plan to manage its debt and continue acquisitions? A: Andrew Boll, CFO: We plan to refinance our debt with supportive partners like Oaktree or others. The business is well-positioned to service debt, and we have options for refinancing. We aim to continue acquisitions intelligently without compromising shareholder value, leveraging opportunities in the ophthalmology market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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