By Dean Seal

Shares of Harrow fell after a surge in demand from high-deductible patients for one of its key products hurt revenue and earnings in the first quarter.

The stock dropped 20% to $30.32 on Tuesday. Shares are now down 39% year to date.

The biotech company said revenue declined 7.6% to $44.2 million in the first quarter. Analysts polled by FactSet had been expecting a gain to $52.4 million.

Weaker gross margins on those sales widened the company's quarterly loss to $27.6 million, or 74 cents a share, from a loss of $17.8 million, or 50 cents a share, a year earlier. Analysts had expected the shortfall to narrow to 40 cents a share.

Chief Executive Mark Baum said demand for Harrow's flagship products was strong, but commercial coverage for its prescription eye-drop Vevye wound up hurting the bottom line. A higher-than-expected number of patients with high-deductible insurance plans bought Vevye, spurring the company to provide more out-of-pocket coupons and assistance than initially planned.

Harrow has since adjusted its rules to resolve the issue, Baum said. "With these rules now in place, we are now positioned to realize the expected financial benefit of our expanded commercial access," he said.

Write to Dean at dean.seal@wsj.com

(END) Dow Jones Newswires

May 12, 2026 11:53 ET (15:53 GMT)

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