Harrow Health Inc

B. Riley analyst Mayank Mamtani has identified six top biotech picks heading into third-quarter 2026 earnings season, following the Federal Reserve's 25 basis point rate hike to 4.00%, its first increase since July 2023. The unanimous 12-0 vote left room for one to two additional hikes before year-end, and with the 10-year Treasury at its highest level since 2007, small and mid-cap biotech stocks face a macro-driven drawdown that historically has presented buying opportunities. The XBI index is up 27% year-to-date but down 2% quarter-to-date, compared to the S&P 500's 13% and 4% gains respectively, while loss of exclusivity-driven pharma mergers and acquisitions track toward their strongest year since 2019, permanent FDA leadership is installed, and drug-pricing risk is largely resolved through most favored nation agreements covering 26 companies. Late third quarter and fourth quarter carry over 40 company-specific catalysts across the coverage list. The picks are Axsome Therapeutics, rated Buy with a $300 price target and up 6% year-to-date, where the analyst models AUVELITY revenue at approximately $205 million to $210 million against consensus of $215.8 million and total revenue of approximately $259 million; Cytokinetics, rated Buy with a $146 price target and up 4% year-to-date, with MYQORZO wholesale tracking to approximately $18 million for the full third quarter versus $8.9 million for all of second quarter; Eton Pharmaceuticals, rated Buy with a $70 price target and up 229% year-to-date, with consensus third-quarter 2026 and fiscal year 2026 revenue of $42 million and $149.7 million versus management's guidance of over $145 million for fiscal year 2026; Harrow, rated Buy with a $60 price target and down 31% year-to-date, with fiscal year 2026 guidance of $350 million to $365 million; TG Therapeutics, rated Buy with an $86 price target and up 95% year-to-date, positioned to compound off an approximately $1 billion U.S. Briumvi exit run-rate at year-end 2026; and Zymeworks, rated Buy with a $44 price target and up 4% year-to-date, where partner Jazz Pharmaceuticals' third-quarter 2026 report in early November provides the first commercial read on the first-line HER2-positive gastroesophageal adenocarcinoma launch following the August 25 approval and $250 million milestone.

Viatris reported second-quarter revenue of $3.8 billion, up 3.5% operationally, and raised its full-year 2026 guidance across all key metrics. Adjusted EBITDA rose 8% operationally to $1.2 billion, and adjusted EPS grew 9% to $0.69, driven by 16% operational growth in Greater China and strength in North American complex generics. The company now expects 2026 revenue of $14.55 billion to $14.95 billion, adjusted EBITDA of $4.3 billion to $4.5 billion, and adjusted EPS of $2.45 to $2.59, with midpoints raised for all three. Viatris also announced FDA approval of its Gwyn Lo contraceptive patch, a $30 million upfront deal to sell Tyrvaya rights to Harrow, and completion of its Biocon stake sale for $380 million, while warning that Nashik facility disruptions could cut second-half revenue by $100 million to $150 million.

Harrow reported second-quarter revenue of $70.7 million, an 11% increase year over year, driven by stronger demand for VEVYE, IHEEZO and specialty products. The company reiterated its full-year revenue guidance of $350 million to $365 million and adjusted EBITDA guidance of $80 million to $100 million. Management expects second-half growth from improved VEVYE pricing and expanded commercial coverage, IHEEZO's 25% net price increase, BYOOVIZ and the relaunch of VERKAZIA. Harrow plans to acquire global rights to TYRVAYA for $30 million in cash, with more than $30 million of revenue expected in 2027 if the deal closes. The company also advanced pipeline programs G-MELT and YOCHIL, targeting future FDA submissions.

Samsung Bioepis has relaunched its interchangeable ophthalmology biosimilar BYOOVIZ in the United States in partnership with Harrow. BYOOVIZ, a biosimilar referencing Lucentis, was the first ophthalmology biosimilar to gain FDA approval in September 2021 and received interchangeability designation in October 2023. Harrow assumed commercialization responsibility for BYOOVIZ and another interchangeable biosimilar, OPUVIZ, after Biogen returned commercial rights to Samsung Bioepis at the end of 2025. Samsung Bioepis will continue to handle development, regulatory registration, and manufacturing, while Harrow leads US commercialization. The relaunch aims to expand patient access to a quality-proven, cost-effective treatment for wet age-related macular degeneration and other retinal conditions.