Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 58

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 58
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, and we may not be competitive
with respect to these factors. Other competitive factors include the safety and efficacy of a product, the size of the market for a product,
the timing of market entry relative to competitive products, the availability of alternative compounded formulations or approved drugs,
the price of a product relative to alternative products, the availability of third-party reimbursement, the success of sales and marketing
efforts, brand recognition and the availability of scientific and technical information about a product. Although we believe we are positioned
to compete favorably with respect to many of these factors, if our proprietary formulations are unable to compete with the products of
our competitors, we may never gain market share or achieve sustained profitability.

Concentration of sales
at certain of our wholesaler distributors and consolidation of private payors may negatively affect our business.

Certain of our distributors,
customers and payors have substantial purchasing leverage, due to the volume of our products they purchase or the number of patient lives
for which they provide coverage. The substantial majority of our U.S. branded product sales are made through four pharmaceutical product
wholesaler distributors: McKesson Corporation, AmerisourceBergen Corporation, Western Wellness and Cardinal Health, Inc. These distributors,
in turn, sell our products to their customers, which include physicians or their clinics, ambulatory surgical centers, hospitals and
pharmacies. Similarly, as discussed above, there has been significant consolidation in the health insurance industry, including that
a small number of PBMs now oversee a substantial percentage of total covered lives in the U.S. See the risk factor Our sales depend
on coverage and reimbursement from government and commercial third-party payors, and pricing and reimbursement pressures have affected,
and are likely to continue to affect, our profitability. The three largest PBMs in the U.S. are now part of major health insurance
providers. The growing concentration of purchasing and negotiating power by these entities has, and may continue to, put pressure on
our pricing due to their ability to extract price discounts on our branded products, fees for other services or rebates, negatively affecting
our bargaining position, sales and/or profit margins. In addition, decisions by these entities to purchase or cover less or none of our
branded products in favor of competing products could have a material adverse effect on our branded product sales, business and results
of operations due to their purchasing volume. Further, if one of our significant wholesale distributors encounters financial or other
difficulties and becomes unable or unwilling to pay us all amounts that