| Deal value | $30M |
|---|---|
| Share of market cap | 2.6% |
| Share of annual revenue | 11.0% |
Key highlights
- Initial cash consideration of $30 million paid at closing using cash on hand
- Potential for $70 million in milestone payments based on net sales through 2029
- Acquisition includes global rights except for Japan, where Viatris will pay Harrow royalties
- Integration of approximately 40 experienced personnel from Viatris to join Harrow
- TYRVAYA complements VEVYE, Harrow’s flagship prescription therapy for dry eye disease
What Is the Deal?
Harrow, Inc. has officially closed the acquisition of TYRVAYA from Viatris Inc. for an initial cash consideration of $30.0 million. The transaction, initially announced in August 2026, grants Harrow the global rights to the varenicline solution nasal spray, with the specific exception of the Japanese market. While Viatris retains commercialization rights in Japan, it will pay Harrow tiered royalties on future net sales in that territory. The deal includes the transfer of related intellectual property, inventory, and regulatory approvals, including the product's New Drug Application. The closing payment was funded entirely from Harrow's existing cash reserves.
Deal Structure & Terms
- Harrow paid $30.0 million in fixed cash consideration at the close of the transaction
- Contingent milestone payments of up to $70.0 million are tied to specific net sales thresholds
- The measurement period for sales-based milestones extends through December 31, 2029
- Viatris is obligated to pay tiered royalties on annual net sales in the Japanese market
- Harrow assumed specified liabilities related to the acquired assets and global operations
Strategic Rationale
The acquisition positions TYRVAYA as a high-growth complement to VEVYE, Harrow’s existing flagship dry eye disease therapy. By offering both a nasal spray and a topical drop, Harrow aims to provide ophthalmic professionals with a broader range of treatment modalities for complex ocular conditions. Management intends to leverage its expanded Ocular Surface commercial organization, which will be augmented by 40 former Viatris employees, to increase market penetration. The integration is expected to utilize Harrow’s established market access and patient affordability platforms to scale the product's current prescription base across North America and international markets where approvals are pending.
Business Overview
Based in Nashville, Tennessee, Harrow is an ophthalmic-focused pharmaceutical company specializing in the development and commercialization of innovative therapies for eye diseases. The company operates a growing portfolio of branded prescription products and manages a North American commercial platform that services optometrists and ophthalmologists. Its revenue profile is supported by a mix of legacy products and recent launches such as IHEEZO. With a current market capitalization of approximately $1.14 billion and trailing twelve-month revenues exceeding $272 million, the company continues to execute a buy-and-build strategy within the specialty ophthalmology sector.
Down 7.3% since our story on 5 Oct: $30.48 when we broke it → $28.24 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.
Show the prices
| 14 Sep | $34.07 |
|---|---|
| 15 Sep | $33.84 |
| 16 Sep | $34.21 |
| 17 Sep | $33.13 |
| 18 Sep | $33.08 |
| 21 Sep | $33.92 |
| 22 Sep | $34.45 |
| 23 Sep | $33.60 |
| 24 Sep | $33.10 |
| 25 Sep | $33.07 |
| 28 Sep | $31.60 |
| 29 Sep | $31.40 |
| 30 Sep | $30.80 |
| 1 Oct | $30.61 |
| 2 Oct | $30.48 |
| 5 Oct | $30.58 |
| 6 Oct | $30.35 |
| 7 Oct | $30.62 |
| 8 Oct | $30.52 |
| 9 Oct | $29.36 |
| 12 Oct | $29.11 |
| 13 Oct | $28.24 |
Management Perspective
“VEVYE remains the cornerstone of our dry eye franchise, while TYRVAYA gives us an established, complementary prescription brand with a unique route of administration and an existing base of physicians who know and use the product.”
Management commentary
“Today marks an important step forward for Harrow and for the physicians and patients we serve.”
| Share price | $30.48 |
|---|---|
| Market cap | $1.1B |
| Revenue (annual) | $272M |
| 1-month price change | -17.55% |
| Sector | HealthcareDrug Manufacturers - Specialty & Generic |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
SEC filing by Harrow, Inc. announcing the completion of the acquisition of TYRVAYA from Viatris Inc.
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