Nashville-based Harrow Inc. is making a big bet on dry eye treatment, agreeing to acquire global rights to the nasal spray Tyrvaya from Viatris for $30 million upfront in cash plus up to $70 million in additional milestone payments tied to future sales. The deal, funded with cash on hand, arrived alongside a batch of other product news that sent Harrow shares ticking upward Wednesday even as the company's latest quarterly report showed a widening net loss.
According to a release cited by the Nashville Post, the Tyrvaya agreement was struck with Viatris, a pharmaceutical company based in Canonsburg, Pennsylvania. Tyrvaya itself has passed through several corporate hands since it first reached the market: the drug was originally developed by Oyster Point Pharma and won FDA approval in October 2021, before Viatris acquired Oyster Point in early 2023 to build out its own eye care division, according to Optometry Times.
What makes Tyrvaya distinct from typical dry eye treatments is its delivery method. As a cholinergic agonist nasal spray, it activates the trigeminal parasympathetic pathway to stimulate natural tear production, offering patients a drop-free option that does not require contact lens wearers to remove their lenses before use, per OINDP News.
Vevye Sales Surge as Formulary Coverage Expands
The Tyrvaya purchase gives Harrow a second major dry eye product to sit alongside Vevye, its prescription eye drop that has been gaining ground fast. Vevye generated $29.4 million in second-quarter 2026 revenue, a 40% sequential increase, and the company also secured coverage with a top-three national pharmacy benefit manager effective August 1, the same report notes. Vevye was developed by German biopharmaceutical company Novaliq using water-free EyeSol technology, won FDA approval in May 2023, and was acquired by Harrow that July for commercialization in the U.S. and Canada, according to a company announcement.
Together, the two products position Harrow to compete for both drop-based and drop-free dry eye patients, a strategy the company is pursuing as it expands its broader eye care portfolio. Harrow is based in Nashville, and the products announced this week extend a franchise that already anchors much of the company's local business.
Byooviz Launch Pushes Harrow Into Retinal Disease Market
Beyond dry eye, Harrow also launched Byooviz in the United States on July 1 under an exclusive agreement with Samsung Bioepis, marking its entry into the estimated $9 billion U.S. retinal anti-VEGF market, the company said in a release. Byooviz became the first FDA-approved ophthalmology biosimilar in September 2021 and earned an FDA interchangeability designation to Lucentis in October 2023, before Samsung Bioepis transitioned U.S. marketing rights over to Harrow.
The Nashville Post reported that Harrow's stock saw an uptick Wednesday as investors digested the combined news of the Byooviz launch, the Vevye formulary expansion, and the pending Tyrvaya acquisition. That reaction came even though Harrow's second-quarter results, released the same week, showed the company missing profitability expectations.
Q2 Loss Widens Despite Revenue Growth
For the second quarter of 2026, Harrow reported $70.7 million in revenue, an 11% year-over-year increase, but posted a GAAP net loss of $17.3 million, or $0.46 per share, missing analyst expectations, according to MarketBeat. The shortfall stemmed largely from aggressive commercial expansion investments, including doubling Harrow's dry eye field force and tripling its surgical sales force during the first half of the year.
Despite the quarterly loss, Harrow management reiterated its full-year 2026 guidance of $350 million to $365 million in revenue and $80 million to $100 million in adjusted EBITDA, according to Seeking Alpha. Management also projects that Tyrvaya will contribute more than $30 million in revenue in 2027, with executives expecting growth to accelerate significantly in the fourth quarter of this year.
A Growing Middle Tennessee Employer
Harrow's product push carries local weight in Middle Tennessee, where the company relocated its headquarters from San Diego back in 2019. In September 2024, Harrow announced a $3 million expansion in Davidson County that added 147 local jobs and grew its office and chemistry lab footprint to 30,000 square feet, according to Trade and Industry Development. That expansion increased Harrow's local Tennessee headcount by nearly 70%, underscoring the company's role as a growing presence in the region's healthcare and biopharmaceutical sector.
