Shares of Nashville-based Harrow Health jumped 16 percent Wednesday after the ophthalmology company announced record first-quarter earnings and the roll-out of a telehealth platform later this week.
Harrow reported $15.4 million in revenues in the first quarter, up 31 percent from last year in what CEO Mark Baum called the “best financial quarter in Harrow Health’s history.” The company produced a profit of nearly $11.7 million and improved its gross margins to 75.6 percent compared to 69 percent last year.
Baum said week-to-week revenues have begun to stabilize from the disruption of the COVID-19 pandemic and the company’s clinic network is beginning to catch up to pent-up demand from the last year, trends the leadership team believes will remain throughout 2021 and boost overall revenue.
The company has recently raised nearly $75 million in capital to continue expanding and cutting costs, with plans to make strategic acquisitions and expand their suite of therapeutics in late stage studies or approved by the Food and Drug Administration. To improve margins, the company is also looking to build out more manufacturing and distribution facilities and launch an analytical lab to bring down quality control costs.
In a call with investors on Tuesday, Baum also introduced the company’s latest venture, dubbed Visionology, a telehealth platform, which will launch regionally later this week. The subsidiary will serve as a direct-to-consumer option that leverages Harrow’s 10,000-physician network to manage chronic eye conditions.
The software has been in development in-house for more than three years, Baum said, and will be led by former Doxy.me co-founder and CEO and current Harrow Chief Innovation Officer Drew Livingston. Livingston was hired last March specifically for the launch, after seven years working specifically in the digital health care space, including as a consultant for McKinsey & Co. and Bain & Co.
“Visionology is a direct-to-consumer eyecare platform that delivers a simple and seamless user experience to help patients manage their chronic eye diseases,” Baum wrote in a letter to investors. “Our goal with Visionology is to drive value, transparency and access to eyecare, and we are very excited about this revolutionary new technology that we believe will transform the way that consumers access eyecare products and services.”
Harrow shares (Ticker: HROW) were trading hands at $9.30 on Wednesday afternoon. They’re now up about 12 percent year to date.