Harrow Health, Inc. (HROW) closed its acquisition of Melt Pharmaceuticals, Inc. on November 17 2025, with the announcement released the following day. The deal was structured for an initial cash payment of approximately $4.3 million at closing, with up to $348 million in regulatory and commercial milestone payments contingent on the successful development and commercialization of Melt’s Zydis® oral‑disintegrating tablet platform.
The acquisition gives Harrow immediate access to Melt’s proprietary Zydis® technology, which has already been deployed in more than 800 U.S. ophthalmic centers through Harrow’s ImprimisRx subsidiary (MKO Melt). The platform will allow Harrow to launch a needle‑free, sublingual sedative—MELT‑300—once it receives FDA approval. MELT‑300, a 3 mg midazolam/50 mg ketamine formulation, completed a Phase 3 trial that demonstrated superiority to midazolam alone and is slated for an NDA submission in the first half of 2027, with a potential approval and commercial launch in the second half of 2028.
Harrow’s recent financial performance underscores the strategic fit of the acquisition. In the third quarter of 2025, the company reported revenue of $71.6 million, up 45 % year‑over‑year, and earnings per share of $0.33, beating analyst expectations of $0.24 by $0.09. The fourth quarter of 2024 saw revenue of $66.8 million, an 84 % jump from the prior year, and an EPS of $0.24 versus a forecast of $0.13. These results reflect strong demand for Harrow’s core ophthalmic products, particularly VEVYE and IHEEZO, and demonstrate the company’s ability to maintain profitability while investing in growth initiatives.
Mark L. Baum, Harrow’s CEO, said the acquisition is a “defining milestone” that positions the company to transition from a niche ophthalmology focus to a broader procedural sedation portfolio. He added that the integration of Melt’s technology will “reduce opioid exposure and expand safe sedation options for patients across a range of outpatient procedures.” Baum emphasized that the company’s existing infrastructure and customer base will accelerate the market entry of MELT‑300 once regulatory approval is obtained.
The deal expands Harrow’s revenue mix and mitigates concentration risk by adding a high‑growth, non‑opioid sedation segment. By leveraging its established MKO Melt network, Harrow can quickly convert existing customers to the FDA‑approved product, creating a new revenue stream that complements its ophthalmology business. The strategic move also aligns with industry trends toward needle‑free, patient‑centric solutions and positions Harrow to capture a share of the growing procedural sedation market, which is projected to reach multi‑billion‑dollar valuations as demand for opioid‑free alternatives rises.
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