Harrow Health Sees Stock Purchases From Two Insiders

Corporate insiders know more about their businesses than anyone else. If these individuals are buying company stock, it’s often worth taking a closer look.

In this report, we are going to highlight some interesting insider buying at Harrow Health Inc (HROW:US). Harrow Health is an American ophthalmic healthcare company. Based in Nashville, the company makes pharmaceutical products for ophthalmic surgeries in the US, as well as medications prescribed to treat patients managing chronic and acute eye conditions such as dry eye disease, glaucoma, allergies, and infections. It is listed on the Nasdaq and currently has a market cap of around $573.7 million.

Insider Buying

Our data shows that on August 14, two insiders at Harrow Health bought company stock. Board member Martin Makary made the largest purchase, picking up 20,000 shares at a price of $16.92 per share. CEO Mark Baum made a smaller trade, acquiring 5,800 shares at a price of $17.05 per share.

Trading Skill

This trading activity is worth highlighting due to the fact that insiders at Harrow Health have made well-timed stock purchases in the recent past. Back in January, we noted that four insiders (including Mr. Baum and Mr. Makary) at the company had bought stock. Over the next four months, the stock roughly doubled in price.

It’s worth pointing out that both Mr. Baum and Mr. Makary have considerable industry experience. Mr. Baum is the founder of Harrow Health, as well as the founder of Eton Pharmaceuticals, Melt Pharmaceuticals, and Surface Ophthalmics and Visionology. Mr. Makary is the Chief of Islet Transplant Surgery at the Johns Hopkins Hospital in Baltimore, where he has been employed since 2002.

Market Leadership Position

Harrow Health’s recent Q2 results showed that the company continues to grow at a rapid rate.

For the quarter, revenues came in at a record $33.5 million, an increase of 44% year on year. Meanwhile, adjusted EBITDA amounted to a record $11.0 million, an increase of 144% year on year.

It’s worth noting that Harrow recently acquired the commercial rights to a range of FDA‑approved ophthalmic products. And these deals have catapulted the company into a leadership position in the US ophthalmic pharmaceuticals market.

“Since January of 2023, through a series of transactions, we have not only improved Harrow’s balance sheet, but we’ve dramatically improved Harrow’s product portfolio, which is now one of the most comprehensive ophthalmic pharmaceutical offerings in the US market,” said Mr. Baum in the Q2 results.

“With what we now have in our “bag” and continued execution and operational performance by the Harrow team, we believe we are on our way to achieving the highest financial goals for Harrow’s stockholders,” he added.

In light of the company’s recent deals, we see the insider buying here as a bullish development.