Harrow, Inc. · NASDAQ:HROW
Harrow — Harrow Health — Investor Presentation (May 2019)
24 slides from Harrow's investor presentation, May 22, 2019
Slide 1: Harrow
HARROW NASDAQ: HROW MAY 2019
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains express "forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying ‘assum
Slide 3: Topics Covered
HARROW HEALTH INC TOPICS COVERED Introduction to Harrow Health, Inc. Financial Metrics Harrow Health Equity Interests * ImprimisRx Operating Business + Passive Equity Holdings * Other Subsidiaries Defining Success in 2021
Slide 4: Harrow Health Introduction
Harrow Health Introduction Value Stool * We found pharmaceutical companies; oO « We finance and manage them; and « We own: * large equity stakes, and * royalties on many of the drug candidates they develop By HARROW aa
Slide 5: Harrow Health Introduction
Harrow Health Introduction Value Stool —____— HARROW -melt/surtace equity values estimated based on the conversion price of Series A preferred stock (the most recent financing; and not a U.S. GAAP measure) Eton value is calculated based on the closing stock market price of Eton’s common stock as of
Slide 6: Harrow Health Introduction
Harrow Health Introduction BB) HARROW Tt Subsidiaries Deconsolidated businesses |ARROW Imprimis MAY.FIELD* Siazess’ 8. aman * Pursuing a deconsolidating transaction ** Includes all future label extensions G@urface g 30% | ' Does not include ParkRx subsidiary, which Harrow is reviewing strategic opti
Slide 7: Financial Metrics
FINANCIAL METRICS HARROW
Slide 8: Consolidated Financials
Consolidated Financials Revenue Growth: + $100M rev run rate goal in 2021 + 123% revenue CAGR 2014-2018 + 55% consolidated annual revenue growth (2017-2018) + 57% ophthalmology year-over- year revenue growth (QI 2019) + Five ophthalmology products launched in May 2019; more planned for 2019-2020 Gro
Slide 9: Equity Interests
HARROW HEALTH INC EQUITY INTERESTS Imprimis p elon G@u tface eee onerm acest eer = «RD pharmaceuticals
Slide 10: ImprimisRx Subsidiary
ImprimisRx Subsidiary THE OPPORTUNITY? |ARROW Founded by Harrow in 2014 100% owned by Harrow Leading ophthalmology pharmaceutical compounder Two facilities (30,000 ft?) producing -25 SKUs IP focused; 60+ patents filed 3,000+ physician customers in all 50 states 187% revenue CAGR (2014 through 2018)
Slide 11: ImprimisRx Subsidiary: Opportunity in U.S.
ImprimisRx Subsidiary Opportunity in U.S. OCULAR SURGERY Antibiotics, antrinflammatories, sedatives, mydriatics, and anesthetics $1+ billion drug market -4.6M ocular surgeries and other procedures" Demographic growth in the overall market -6% per yr'> GLAUCOMA Prostaglandin analogs, beta blockers, a
Slide 12: Harrow Subsidiaries and Deconsolidated Businesses
HARROW Subsidiaries ] [ Deconsolidated businesses] Royalty opportun s] imprimis p.. elon MAM BLE LD” G@urface gr 30% | S: ADLEY* Soe MELT * Pursuing a deconsolidating transaction ** Includes all future label extensions * Does not include ParkRx subsidiary, which Harrow is reviewing strategic options
Slide 13: Harrow's Deconsolidated Equity Portfolio
HARROW’S DECONSOLIDATED EQUITY PORTFOLIO ESTIMATED VALUE: $57M* elo G@urtace MELT + Eton was formed by Harrow in 2017 Te 606 + Led by CEO Sean Brynjelsen s JET + 20+ years of pharma leadership 3.5M shares at $5 Eton $28,000,000) + Eton has: 3.5M shares at $8 + 11 drug candidates in pipeline + 7 NDAs
Slide 14: Passive Equity Holdings
Passive Equity Holdings HARROW’S DECONSOLIDATED EQUITY PORTFOLIO ESTIMATED VALUE: $57M* = Se) Gurface MELT N + Led by CEO Kamran Hosseini, MD, PhD gi ennaoo ™ + 20+ years of senior ophthalmology drug as q development experience 3.5M shares at $5 Eton sO ' $28,000,000) } + Developing three ocular sur
Slide 15: Passive Equity Holdings
Passive Equity Holdings HARROW’S DECONSOLIDATED EQUITY PORTFOLIO ESTIMATED VALUE: $57M* — Gurface MELT Led by CEO Greg Madison gi ennaoo + Ex-CEO of Keryx Biopharmaceuticals ea \ + 15+ years senior pharma leadership 3.5M shares at $5 Eton ' $28,000,000 \ + Developing non-opioid, non-lV, sedation and
Slide 16: Other Subsidiaries
Other Subsidiaries / SPRADLEY MAYELELD § Pharmaceuticals + Women’s health-focused + Focused on 505(b)(2) drug candidates for rare + May-44, a patented non-estrogen topical anesthetic and orphan drug indications drug candidate for dyspareunia + RAD-100, RAD-101 are anti-infective drug + Positive anec
Slide 17: Defining Success in 2021
DEFINING SUCCESS IN 2021 HARROW
Slide 18: Defining Success in 2021
Defining Success in 2021 € Value Stool > History of Executing * 187% ophthalmology revenue CAGR* * 123% consolidated revenue CAGR* * 68% gross margins (Q1-2019), an all-time high + $57M balance sheet value** from deconsolidated entities 2021 Vision * ImprimisRx operating business + $100M revenue run
Slide 19: Company Profile
Company Profile” SYMBOL RICE PER SHARE AILY Q1-2019 TRADING VOLUME NASDAQ: HROW $6.57 277,000 SHARES OUTSTANDING COMMON S$ STRONG CEO/CFO INCENTIVE THRU 24. 8M SHARES $163 MILLION "ACHIEVE $9 - $15 SHARE PRICE. HARROW haiti Bia ee
Slide 20: Appendix and References
APPENDIX AND REFERENCES HARROW
Slide 21: Published Clinical Data
Published Clinical Data Kindle, Trevor, MD, et al. (2018, January). Safety and efficacy of Intravitreal Injection of sterold and antiblotics In the setting of cataract surgery and trabecular microbypass stent. Journal of Cataract and Refractive Surgery. Ina study of 483 eyes undergoing cataract surg
Slide 22: References
References 1. Market Scope, LLC, Comprehensive Report on the Global |OL Market (2013, May). 2. Allen, A. (2007). Vasectomy Risks and Benefits, Retrieved November 08, 2016, from http://Awww.webmd.com/men/features/ vasectomy-risks- benefits 3, US Market Report Suite for Gastrointestinal Endoscopic Dev
Slide 23: References
References 15, Market Scope, Steady Growth in Catara scope.com/pressrelease/steady-growth 16, Glaucoma Research Foundation, Glaucor statistics/glaucome-facts-and-stats.php 7. Schott, Chris, .P. Morgan, "Eye" ideally Positioned to Expand the Dry Eye Market . ..” August 14, 2017 18. Mayo Clinic Staff.
Slide 24: Harrow Health Inc
HARROW | 2228505 (858) 704-4040 HEALTH INC IR@HARROWINC.COM WWW.HARROWINC.COM