Will Harrow's (HROW) New Debt Structure Unlock Greater Financial Flexibility and Growth Potential?

• Harrow recently completed a private offering of US$250 million in 8.625% senior unsecured notes due 2030, with the proceeds being used to refinance existing debt and fund future corporate growth.
• This refinancing, which also includes the establishment of a new US$40 million revolving credit facility, significantly changes the company's capital structure and financial flexibility.
• We'll explore how this move to refinance and extend debt maturities could affect Harrow's investment narrative and long-term outlook.

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Harrow Investment Narrative Recap

To believe in Harrow as a shareholder, you need to trust in the company's ability to keep growing its ophthalmic drug portfolio while defending market share for flagship products like VEVYE, IHEEZO, and TRIESENCE. The move to refinance over US$220 million in higher-cost debt with new 8.625% senior notes and add a US$40 million revolving facility strengthens Harrow’s short-term financing position but does not materially alter the top catalyst, continued prescription and revenue growth, or the ongoing risk of slower organic demand as early surges normalize.

Among Harrow’s recent announcements, the affirmed 2025 revenue guidance of over US$280 million stands out, as it reflects management’s expectations for robust product growth even as the company restructures its balance sheet. This forward-looking guidance will be watched closely by the market, given that sustaining earlier growth rates, particularly in VEVYE and TRIESENCE, is key to validating Harrow’s investment case over the next year.

In contrast, investors should be aware that heavy reliance on a small number of products could expose Harrow to higher-than-expected earnings volatility if...

Read the full narrative on Harrow (it's free!)

Harrow's outlook anticipates $586.7 million in revenue and $209.0 million in earnings by 2028. This requires 37.1% annual revenue growth and an increase in earnings of $219.2 million from the current -$10.2 million.

Uncover how Harrow's forecasts yield a $60.10 fair value, a 40% upside to its current price.

Exploring Other Perspectives

Five community members on Simply Wall St set fair values for Harrow ranging from US$42 to US$247.52 per share. Given Harrow’s recent refinancing, opinions on the sustainability of top-line growth may help explain why investor outlooks can differ so much.

Explore 5 other fair value estimates on Harrow - why the stock might be worth just $42.00!

Build Your Own Harrow Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Harrow research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Harrow research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Harrow's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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