Company: HROW
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000925
Chunk: 1649

Company: HARROW, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 9B
Chunk 1649
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 0.1%, an ophthalmic drug product, for the U.S. and Canadian markets (the “VEVYE Acquisition”).
The Company acquired the commercial rights to VEVYE by entering into a license agreement with Novaliq GmbH (“Novaliq”). As
consideration, the Company made initial payments to Novaliq totaling $8,000,000 and will pay low double-digit royalties on net sales
of VEVYE along with potential commercial milestone payments.

The Company accounted for the VEVYE Acquisition as
an acquisition of assets and capitalized the initial payments of $8,000,000 and costs of $70,000 associated with the transaction.

Acquisition of Certain U.S. and Canadian Commercial Rights to Santen
and Eyevance Products

In July 2023, the Company entered into an Asset Purchase
Agreement with Eyevance Pharmaceuticals, LLC and a License Agreement with Santen S.A.S. (collectively, the “Santen Agreements”),
each a subsidiary of Santen Pharmaceuticals Co., Ltd. (collectively, “Santen”). Pursuant to the Santen Agreements, the Company
acquired the exclusive commercial rights to assets associated with the following ophthalmic products (collectively, the “Santen
Products”): FLAREX, NATACYN, ZERVIATE, VERKAZIA and FRESHKOTE in the U.S., and VERKAZIA and CATIONORM PLUS in Canada.

The transactions pursuant to the Santen Agreements
are referred to in these notes as the “Santen Products Acquisition.”

Under the terms of the Santen Agreements, the Company
made an initial one-time payment of $8,000,000. In addition, the Santen Agreements provide for various one-time contingent milestone
payments associated with certain manufacturing-related events as well as low-double digit royalty payments on net sales of VERKAZIA and
high-single digit royalty payments on net sales of CATIONORM PLUS. Under the Santen Agreements, the Company also assumed certain obligations
associated with other third parties that require mid-single digit royalties on sales of FRESHKOTE and ZERVIATE. Immediately following
the closing and subject to certain conditions, prior to the transfer of the Santen Products NDAs and other marketing authorizations to
the Company, Santen continued to sell the Santen Products on the Company’s behalf and transfer the net profit from the sale of
the Santen Products to the Company.