Q1 2023 Harrow Health Inc Earnings Call
Speaker 1: And.
Speaker 2: Good afternoon and welcome to Harrow's first quarter 2023 earnings conference call. My name is Joe and I will be your operator for today's call.
Speaker 2: At this time, all participants are in a listen-only mode.
Speaker 2: Later, we will conduct a question and answer session. And as a reminder, this conference is being recorded today.
Speaker 2: I would now like to turn the call over to Jamie Webb, Director of Communications and Investor Relations for Harrow. Please go ahead.
Speaker 3: Thank you, operator. Good afternoon and welcome to Harold's first quarter 2023 earnings conference call.
Speaker 3: Before we begin today, let me remind you that the Company's remarks may include forward-looking statements within the meaning of federal securities laws.
Speaker 3: Overlooking statements are subject to numerous risk and uncertainties, many of which are beyond Harold's control, including risk and uncertainties described from time to time in its FCC file links, such as the risk and uncertainties related to the company's ability to make commercially available its FDA approved products.
Speaker 3: and compounded formulations and technologies, and FDA approval of certain drug candidates in a timely manner or at all.
Speaker 3: For a list in description of those risks and uncertainties, please see the risk factor section of the company's most recent annual report on form 10K and subsequent quarterly reports on form 10K filed with the Security Sym Exchange Commission.
Speaker 3: Heros results may differ materially from those projected. Heros' claims any intention or obligation to update or revise any financial projections are forward-looking statements whether because of new information, future events or otherwise. This conference call contains time-sensitive information and is accurate only as of today.
Speaker 3: Additionally, Harold will refer to non-GAAP financial metrics, specifically adjusted EBITDA and or adjusted earnings, as well as core results such as core gross margin, core net income and core diluted net income per share.
Speaker 3: A reconciliation of any non-GAAP measures with the most directly comparable GAAP measures is included in the company's earnings release and letter to stock coders, both of which are available on the website. Have fun.
Speaker 3: Now you should ever see the copy of the earnings press release. If you have not received a copy, please go to the Investor Relations page of the company's website www.hero.com.
Speaker 3: Joining me on today's call are Harold's Chief Executive Officer Mark Albohm and Harold's Chief Financial Officer Andrew Bowles. With that, I turn the call over to Mark to go over some prepared remarks prior to the question and answer session.
Speaker 2: Thanks, Jamie, and thanks to everyone for joining us on today's call.
Speaker 2: If you want to track where we've been and where we're heading as we execute our most recent five-year plan. On past quarterly calls either I or Andrew have read out the financial numbers for the quarter. However, all of these figures are in black and white on not only our Form 10 cube, but they're also summarized in our press release. And of course, they're also available in the stockholder letter, which includes additional commentary. Please forgive me for not covering what you have so many access points to see with your own eyes.
Speaker 2: With that said, I want to reaffirm 2023 guidance of $135 million to $143 million in net revenues and $44 million to $50 million in adjusted EBITDA.
Speaker 2: These figures approximate the revenues. We believe we can achieve in connection with the first year of the aforementioned five-year plan, keeping in mind that we started a new five-year planning cycle this past January .
Speaker 2: I realize these days that only a select few public company stockholders have an overflowing loyalty to a business or their stock holdings.
Speaker 2: Of course, it has never been easier to buy or sell a share of stock and thus a share of the businesses that they own. Please know that my day-to-day focus is on achieving the goals of this five-year plan. And this regard, I realize that a five-year plan is made up of a series of one-year plan.
Speaker 4: month plan.
Speaker 2: or the last week plan.
Speaker 2: Of course, if something we thought was achievable is no longer likely to happen, count on me.
Speaker 2: to do my best to identify those shortcomings on these calls.
Speaker 2: my best to identify those shortcomings on these calls. So what is that five year objective?
Speaker 2: We'll put simply I believe at the end of this five year planning cycle. Hero has the opportunity to be one of the largest, if not the largest, pure play, ophthalmic pharmaceutical company in the United States.
Speaker 2: But simply, I believe at the end of this five-year planning cycle, Harold has the opportunity to be one of the largest, if not the largest, pure play ophthalmic pharmaceutical company in the United States. This is what our five-year plan calls for.
Speaker 2: If you as a stockholder believe that we as a management team can accomplish this, then please accept my thanks in advance for your patience and my appreciation for your trust today and hopefully for many years to come.
Speaker 2: Now, let's discuss the recent AS-CRS meeting, which the hero team just returned from, where we formally launched FDA-approved IHISO, the first branded ocular anesthetic approved for the U.S. ophthalmic market in nearly 14 years.
Speaker 2: We had the opportunity to talk with eye care professionals from all over the United States to answer questions about iHeSO, our Fab 5 products, and our expanding portfolio of innovative compounded formulations such as FortiSight and those available on atropine.com.
Speaker 2: As usual, amazing things happen when you speak to your customers.
Speaker 2: They tell you how well you're doing and what you can do better or differently.
Speaker 2: tell you how well you're doing and what you can do better or differently to serve their needs.
Speaker 2: Working the booth and speaking to customers is one of my favorite things to do. And it's one of the most productive things I get to do each year.
Speaker 2: Frankly, talking to customers is how we've built our company over the past nine years. It's our not-so-secret sauce, helping us to get us to this point in our development.
Speaker 2: Regarding IHizo, I had an opportunity to talk with early adopters.
Speaker 2: about their experience to date. Overall, customers are getting the exact experience from iHezo that we had hoped, and there is more commentary on iHezo in our latest stockholder letter.
Speaker 2: We also had the opportunity to talk with customers about our Fab 5 products.
Speaker 2: Generally, ophthalmologists were excited to see us again commit to support these important products and to revitalize them under the hero name.
Speaker 2: And, of course, we talked with many customers who are excited about ongoing product innovation within our compounded pharmaceutical products or CPP business.
Speaker 2: especially fortissite and our proprietary compounded atropine formulations which are available, as I said earlier, at atropine.com.
Speaker 2: Related to our Empress Rx CPP business, I'm happy to share the good news about a recent agreement with a large US health care insurer, which includes one of the nation's largest vision care networks.
Speaker 2: Under this agreement, which kicks off on June 1st of this year, Impromis-Rx will provide its next generation preservative free and boric acid free compounded atropine formulations and its innovative total tiers of ophthalmic formulations such as Clarity-C.
Speaker 2: to the over 9 million members of their VisionCare network, which includes approximately 36,000 private practice eye care professionals, local optical stores, and national retail stores, including well-known national brand names.
Speaker 2: We are looking forward to building our relationship with this new partner and making this new agreement a great success for everyone for many years to come.
Speaker 2: My summary observation from AS-HRS is that there is a growing leadership vacuum.
Speaker 2: in the ophthalmic pharmaceuticals market in the United States. That's aside from certain segments of the retina market, such as wet AMD or age-related macular degeneration or dry AMD, those markets.
Speaker 2: I believe Harrow though is in a pole position to help fill this void to provide leadership and serve ophthalmologists and optometrists as a market leader dedicated to serving the needs of their practices and their patients.
Speaker 2: Our team must continue to execute though and that is what we intend to do. A few more comments on a few items we are focused on.
Speaker 2: One, the Harrow family, all of us, are all hands on deck for the continued roll out of IHISO. Two, we are now beginning commercial activities for three of the Fab Five products, in other words, those products whose NDAs were recently transferred.
Speaker 2: 3. We expect the NDA for Vigamox to transfer towards the middle to latter part of the summer. 4.
Speaker 2: We continue to expect that triessence will be back in stock later this year, and that soon thereafter, the NDA for triessence will transfer to Herald. 5. In a matter of a few days, actually, next Tuesday at 3pm Central to be exact, melt pharmaceuticals is scheduled to meet with FDA regarding.
Speaker 2: the proposed phase three program for its melt 300 program. Once again, there's more. Thank you.
Speaker 2: information about the Melt 300 program and that opportunity in our stockholder letter.
Speaker 2: Six, beginning June 1st, we're working on pull through for our new agreement with this large national health care insurance provider.
Speaker 2: related to sales and dispensing of our atropine formulations, as well as our total tears formulations, specifically Clarity C. And seven.
Speaker 2: We continue to be on the hunt for a creative deals at attractive prices that will enhance our ability to serve our customers and in turn create value for our stockholders.
Speaker 2: 2023 has started out strong and we intend to continue to dig deeper and capitalize on the momentum that we have created. While there are absolutely no guarantees, we are committed to the success of the United States of America.
Speaker 2: and a considerable amount of work lies ahead. We truly believe that Harrow is well positioned to meet our five-year strategic plan objectives.
Speaker 2: uniquely providing both branded pharmaceutical products and compounded pharmaceutical products that meet the needs of our growing customer base and of course millions and millions of their patients.
Speaker 2: We are now happy to take your questions. I will pause to have our operator pull for questions. Operator? We will now begin the question and answer session.
Speaker 5: To ask a question, you may press star and one on your telephone keypad.
Speaker 5: If you are using a speakerphone, please pick up your handset before pressing the keys. And to withdraw a question, please press star then 2.
Speaker 5: At this time, we will take our first question, which will come from Jeffrey Cohen with Leighton-Berg-Fahlman. Please go ahead with your question.
Speaker 6: Well, how are you Jamie Mark and Andrew? How are you? Good to speak with you Jeffrey.
Speaker 6: Hi Jamie, Mark and Andrew, how are you? Good to speak with you, Jeffrey. Long time no see.
Speaker 6: It looked like you had a strong presence here, a CRS, so it's nice to see. So I'll keep it just to a few for now.
Speaker 6: Talk a little bit about HVP and our clarity C as far as the money flow. It looked like your commentary was cash pay and then also around that, can you expand upon clarity C a little bit? Is it being positioned from that specific pair to...
Speaker 6: with an X or a Zupin position to the other Ys.
Speaker 2: Yeah, no. So first of all, thanks for the question.
Speaker 2: To be clear, the agreement is related to compounded formulations that are Empress-Rx.
Speaker 2: compounded business makes and dispenses. So these are products that are not FDA approved, they don't have a specific label or an indication for use to be clear. However, in the case of Clarity-C, which is a proprietary product, the vehicle is patented and it contains 0.1% of cyclosporin.
Speaker 2: That is a compounded formulation that believe it or not has been prescribed in the United States to date by more than 6,000 I-Care professionals.
Speaker 2: So, this is a product, a formulation that has tremendous history in helping many, many thousands of patients, tens of thousands of patients. And it is a cash pay product. Many of the patients who have been prescribed clarity C have also been prescribed before clarity C. They've been prescribed FDA approved products. And there are several of them out there. And we all know which products they are. And for whatever reason, they failed on those products. And we're ultimately prescribed clarity C. Our objective is to not only sell a formulation to help these patients, but to also service these patients. We've real.
Speaker 2: to their members to these formulations on a cash pay basis. For many years, I have said that we have been able to make available these compounded formulations at or below the co-pays that patients oftentimes pay for other alternatives.
Speaker 2: And so they realize that and in this case, they've negotiated a deal with us to make these products available and as I said I think they're quite confident that these formulations will be compelling to their member base.
Speaker 6: And then Mark, walk us through now what the commercial organization looks like in size or maybe geography and then tie that into, I know they've got a lot of more products coming to where it's added into at least the.
Speaker 6: Mark, what does through now what the commercial organization looks like in size or maybe geography and then tie that into? I know they've got a lot of more products coming to where I tie that into at least the three products coming to where I live row.
Speaker 6: and Maxidex, which arguably is in their hands as well as Ejizo. How does that look like and talk about their enthusiasm and maybe territories out there?
Speaker 2: Yeah, so first and foremost, our number one priority within our commercial organization without question above all other opportunities is IHIZO. We've talked a lot about it.
Speaker 2: The product has this unique and permanent J code associated with it. I say in the stockholder letter that I had this unique discussions with eye care professionals where, you know, originally we had thought that a Heezer would be useful.
Speaker 2: not only cataract surgeries but also in travitual injections but I care professionals had other ideas for its use that would be unlabeled and that would potentially be able to be paid for using this J-code or even through the pass-through payment. As far as our commercial organization goes I view our commercial organization.
Speaker 2: sales reps that have these incredible relationships with eye care professionals across the country. Right now, you know, if you aggregate all of those folks, I think the group is around 90 or so in total.
Speaker 2: And they cover all 50 states, and as I said, prior calls, we sell into every populated county throughout the United States. So it's a size of an organization. It is a mighty organization. These folks do a lot with relatively few resources. And then just philosophically, I would say that...
Speaker 2: What you will not wake up and see us do is go out and raise $50 million to hire 150 reps to put out on the street to try and pitch some new product. That's not the way we have grown our organization. We're going to let market interest and sales opportunities and potential revenue...
Speaker 2: drive the addition of additional costs within the sales organization right now. You know these these folks produce a lot of profit for us.
Speaker 2: And as the market grows and the market interest increases for IHISO, for NEBINAC, for Alevro, for Triessence when it comes back and so on, you will see us grow our commercial organization accordingly.
Speaker 6: But, and then a couple quick ones for Andrew, if I may, firstly on the margins, how you're feeling about Q1 margins, and is that sustainable for the balance of 2020-23? And then secondly, on the guide, if you could put forth any commentary, which it's unchanged sandwich...
Speaker 6: Please need to believe that the extra few from the first quarter.
Speaker 6: Doesn't change the full year, but that may be the case in subsequent quarters Sure Jeff, I'll let Mark talk about the guidance a little bit, but in regard to gross margins and specifically core gross margins
Speaker 5: I was pleased with where we came in at. I always think we can do better. I know Mark feels the same way. But 76% on the cordless margin is a good number. We feel like there's room to grow, definitely as the branded portfolio.
Speaker 5: starts getting more sales from those products in particular, which are gonna have higher gross margins of Tydram. So it's definitely a number that we think is sustainable throughout the year. Mark, do you wanna talk a little bit about the guidance? Sure, and Jeffrey, we have
Speaker 2: We've been reticent to put out guidance for many, many years. I think Andrew and I looked at each other earlier this year when we closed the Fab 5 deal, and when we received this permanent J code, and we just said, you know, I think I feel comfortable, and we felt comfortable putting out guidance.
Speaker 2: We're not going to put out guidance that we don't have a fairly high degree of confidence we can achieve. We don't want to put out guidance for the first time really in more than a handful of years and then just absolutely fall right on our face. And so we would like to, you know.
Speaker 2: put out a number and we have put out a number that we think.
Speaker 2: you know, we can put smiles on the faces of our stockholders when we're actually able to deliver our quarterly results. And then ultimately, by the end of the year, hopefully they'll have an even much bigger smile on their face. I think the reality is that Ahezo is going to be a glowing, glowing, glowing, glowing
Speaker 2: phenomenon from a financial perspective and also within the market. This second calendar quarter we're expecting
Speaker 2: I wouldn't say necessarily modest, but the most modest, certainly, out of the second, third or fourth quarter, in terms of revenues, but that should grow markedly in the third calendar quarter, and even more so in the fourth calendar quarter, and we expect even more considerable growth in the 2024.
Speaker 2: beyond. So please forgive us for being conservative. That's just the nature of how we think. But you know we we certainly could have adjusted guidance. We're not going to do that. Let us let us hit these numbers and then you know we'll hopefully provide additional guidance as
Speaker 2: Please progress. Okay, super. Thanks for taking our questions. Thank you, Jeffrey. And our next question will come from my young Camontani. Would be Riley. Please go ahead with your question.
Speaker 7: Good afternoon, T, and thanks for taking a question and congrats on the progress. So maybe just on the ACSRS KLL feedback, I think you mentioned you got some good traction on understanding where exactly the initial uptake for IHSA could be. So in terms of patient populations.
Speaker 7: And also, you know, your clinical data that you have, the faster onset of action, like, could you just talk about like these early adopters, what they feel is really innovative for them, having had not seen a lot, you know, in the past two decades? And then also, we get a lot of questions on the importance of J code and pass through status. So let's talk a little bit about
Speaker 7: how the early grant of that is helpful to understand the trajectory of this drug. And then I have a quick follow up.
Speaker 2: You know, and I say this in the stockholder letter that my experience with the commercial launches that we've had over the last seven years or so is that the first thing that has to happen, and it's paramount, is that the product has got to work.
Speaker 2: It's got to not only work for the physician who's prescribing it or administering it, it's got to work for the patient who it's being administered to and frankly it's got to work for the office staff who are dealing with payment issues. They're dealing with receiving inventory and setting up a surgery.
Speaker 2: for the physician or the surgeon. So what I heard repeatedly,
Speaker 2: And it's not just from KOLs, but really everyone who has used it. And I hasty to say everyone, but it literally is everyone who I spoke to and who was referred to me as being a user from our commercial.
Speaker 2: leadership had very positive experiences using iEASO.
Speaker 2: It was promised in the label. The label is fantastic. And so what I thought was unusual beyond the fact that it worked really well, like I said, not only for the doctors, the patients, and the staff is that it was used more broadly than I had anticipated.
Speaker 2: A friend of ours who is an ophthalmologist, a very well-known ophthalmologist in the state of Wisconsin used ihezo for glaucoma surgeries.
Speaker 2: There are doctors now using it for retina injection, for intravitreal injections and retina procedures, other retina procedures. Doctors want to use this for various laser procedures.
Speaker 2: And so all of those uses, I believe, are on label, because the label is so broad, is a novel ocular anesthetic. And so that was what we heard. And by the way, all of that was consistent with the clinical data. Now, I have had to learn something over the last couple of years as we've branched out beyond compounded formulations, and that is,
Speaker 2: I'm not going to talk about or promote an FDA approved product beyond what is in the four corners of the label. The doctors, of course, are free to say whatever they wish, but what I can tell you is that I'm very, very happy with the physician's feedback, not only from KOLs, but...
Speaker 2: from regular ophthalmologists that are taking care of patients who are customers of ours. And then in terms of the importance of the J code and pass-through, it means everything.
Speaker 2: The fact is that on the cataract surgery side, the policy of providing payment outside of a capitated C for a product like ihezo encourages innovation when innovation would otherwise not be, would not happen.
Speaker 2: The J-code itself though, outside of the ASC or the hospital, outside of cataract surgery, allows the formulation of product to be paid for in the office environment for many of these other procedures that I mentioned. And so we think that bodes very well. We think that over time more and more ophthalmic procedures are going to take place in the office, whether it's cataract surgery or even I was met with someone who's doing they're doing retina procedures in office now. So, retina surgery is in the office.
Speaker 2: More and more procedures are going in office and I think that is a great thing for IHISO use and certainly the J-code that we have for it.
Speaker 7: Appreciate the health of color, very detailed. And then just quickly on the surface of talmics, the phase two dry eye disease data that is presented at a reddener meeting recently or eye conference. But you just talk about what the next steps are there in terms of doing a late stage registration in Ableing Study. Thanks for taking our questions. Thank you. You know, to be candid with you, I recently dropped off of the surface talmics board of directors. I was on the board of directors since the founding of the company.
Speaker 2: And so I am not privy to if you've had information any longer. What I can tell you is that Cameron was able to produce some extraordinary chronic dry disease data, but he also has produced extraordinary data with the other products that they've now completed phase two studies with.
Speaker 2: We think there's significant value there. They have unique drug candidates that they're in the middle of developing, but I can't tell you specifically what the next steps are with surface. We're hoping though that the company sooner rather than later.
Speaker 2: will be a little bit more communicative, not necessarily at eye conferences, but to the broader interested, more broadly to more interested parties, including, frankly, me and the rest of our stockholders.
Speaker 2: So, that's all I really have to say about surface at this time.
Speaker 8: That's helpful to you, Mark.
Speaker 8: That's helpful to you, Mark. Thank you, Mayak.
Speaker 5: And again, if you have a question, you may press star then one to join the queue. Our next question here will come from Brooks O'Neill with Lake Street Capital Markets. Please go ahead with your question. Good afternoon, Mark and Andrew. I got on a few minutes late. So if I ask a question about something you've already talked about in detail, maybe you can just give me the quick answer.
Speaker 5: in that product in the balance of 20, 23.
Speaker 2: Yes, thank you for that Brooks. Is this said, you know, everybody on our team is all hands on deck for IHIZO. We are now recording revenues for IHIZO, which is exciting. Doctors are billing the J-code for IHIZO and we have not had any reports.
Speaker 2: There are, on the cataract surgery side, certainly accounts that are using other pass-through products in the market, and we're certainly talking to those folks first. And so there's sort of a strategic pecking order as we roll this out. That's an opinion.
Speaker 2: Look, there are so many opportunities.
Speaker 2: are so many opportunities in terms of product units.
Speaker 2: to sell into this market when you think about cataract surgery, when you think about intravitreal injections. And now as I've said in the stockholder letter and on this call, glaucoma surgeries and other ophthalmic procedures, including laser procedures. If you take a look at the overall bolus of what that number looks like, it's a big, big number. It's over 15 million.
Speaker 2: unit opportunities annually. And so given the fact that we make drug currently for over a million cataract surgeries.
Speaker 2: You know, I think we have a huge opportunity in front of us with this product, IHizo, and you know, we just need, I think, a stepwise fashion execute this commercial strategy that we've laid out.
Speaker 2: The big, I think, issue for us is creating that buzz. It is these doctors telling their friends about their clinical experience. It is seeing more and more doctors try the product out and continue to order from us, which is happening now. That is also a very important phenomenon that we need more of that.
Speaker 2: But look, there's a big opportunity, it's a huge market, it's the first new topical anesthetic in almost 14 years, and doctors are having great experiences, and we're gonna help more of them have more of those experiences throughout the year.
Speaker 5: He's an acropene and foresight and some of these additional formulations in various areas of Pratt 5.
Speaker 5: and your organization.
Speaker 5: organization. How do you think you'll know when?
Speaker 5: There's enough on the plate and before you get to too much on the plate
Speaker 2: Yeah, that's I appreciate the question.
Speaker 2: Your number one priority is iHISO.
Speaker 2: IHISO is the biggest opportunity within our company, not only from a revenue perspective, but also from a profitability perspective. We are not, though, going to let go of our
Speaker 2: our infamous RX compounding business is an example. You know, that is a business that continues to churn day in and day out. I get the daily sales figures, you know, and it's a great thing to see that thing continue to churn and produce cash and create value and to talk to doctors who love.
Speaker 2: those products in their practices.
Speaker 2: You know, at the ASCRS meeting, I had the opportunity to listen to Dr. Neil Desai's presentation. And I actually put a link to it within the soccer order letter. And I would encourage you to listen to how fort a site.
Speaker 2: has helped him in his practice. Now, I did say that he was paid a little under $1,000 for his time in giving that talk, but trust me.
Speaker 2: Doctors like Dr. DeSci and hundreds of others and a growing number really appreciate the value that this patent pending formulation bring to their practice to help them take better care of their patients.
Speaker 2: If you do the math on what that opportunity looks like, it's a very large opportunity. I was actually talking to another doctor about FortiSite and I mentioned to him that we have a product replacement guarantee that if you have FortiSite in your refrigerator, the value is less than a Sort, because FortiSite does not work so you can do more on my job faster, basically, I make that contribution, on myselskernel,
Speaker 2: and you don't have a patient who needs it, then we would replace it if it expired. And he quickly said, there's no way that I would ever let that expire because I wouldn't just use that on, you know, and he laid out a few other procedures. There's so many other uses for Fortasite.
Speaker 2: besides the specific, for example, central corneal ulcers that he was thinking about. And so, you know, when you think about atropine.com, you know, I've talked about the market opportunity for atropine, you know, the 5 million or so American patients, you know, who are, who would benefit from
Speaker 2: an atropine like therapy And you start doing the math on that. It's a big big number And so we have a lot of these things going it certainly is going to help To have this large insurance company helping us market these opportunities to their patient base, but I I don't think that we're
Speaker 2: we're overwhelmed from a commercial perspective with the products that we have. If you look at the portfolio, we have Vigamox because we already sold a ton of Moxifloxacin already before we own Vigamox. And now to have Vigamox as an FDA approved version of Moxifloxacin only helps us.
Speaker 2: And if you look at the rest of the portfolio with the Fab Five in particular, with the Nseds, the Lebro, and the Nevinak, the same story. So I don't feel like we're overwhelmed. And I think all of these products and the aggregate just help us.
Speaker 5: kind of circle the wagon around our customer to maximally provide for their needs. Well, that sounds great. You guys have executed beautifully in the four or five years I've been following the company and I'm pretty confident you're gonna continue to execute beautifully going forward.
Speaker 5: Thank you, Brooks. Thank you. And this concludes our question and answer session. I'd like to turn the conference back over to Mark Baum for any closing remarks.
Speaker 2: Thank you operator. You know even to to talk a little bit more about the last question you know there really is sort of a vacuum in the ophthalmic pharmaceutical space in the United States all of the major pharmaceutical companies
Speaker 2: for whatever reason are focused on other therapeutic areas it seems. And the large and sort of high science players seem to be focused on wet or dry AMD within the ophthalmic pharmaceutical space. And over the last 10 years or so there's really been a...
Speaker 2: domination in the pharmaceutical space by PBMs and insurance companies. It sort of derailed a lot of drug development.
Speaker 2: small to medium markets, then we had COVID and now we've had massive inflation. Not only for labor materials and other related costs like promotion. And we really believe that there has been a diminishment of competitive threats. We believe that there has been a diminishment of competitive threats.
Speaker 2: in the pharma, pharmaceutical space. It's sort of a unique phenomenon.
Speaker 2: in the up-pharmac pharmaceutical space. It's sort of a unique phenomenon. And we want to be there with those assets.
Speaker 2: to serve this need. And by the way, the need has not diminished one bit. Competition I think has been reduced. The need has only increased. And as I said, for a number of reasons, there are fewer new products being developed that are threats. So today, you know, Harrow is in the best financial and operational shape of its history, and that would not be possible without the support of our stockholders and the entirety of our incredible team.
Speaker 2: So I offer all of you very, very sincere thanks. Thanks to everyone for attending today's call and for your interest in Harrow. If you have any investor related questions, please email Jamie Webb, that's J Webb, webb at Harrow Inc.com. This will conclude our call. The conference is now concluded.
Speaker 5: Thank you very much for attending today's presentation. You may now disconnect your lines and have a great day.