Harrow to Buy TYRVAYA for Up to $100 Million
The ophthalmic company will add the FDA-approved nasal spray to VEVYE and fund the $30 million upfront cash from cash on hand.
Harrow (HROW) agreed to acquire TYRVAYA® (varenicline solution) nasal spray 0.03 mg from Viatris Inc. in an asset purchase that will pay $30 million in cash at closing and up to $70 million in contingent milestone payments tied to TYRVAYA’s net sales, for potential total consideration of up to $100 million.
The ophthalmic disease-management company expects the deal to close in the second half of 2026, subject to customary closing conditions, and to fund the upfront cash payment using cash on hand.
TYRVAYA is a cholinergic agonist indicated for the signs and symptoms of dry eye disease and is currently approved in the U.S., China, and Taiwan, with marketing authorization applications pending in other countries. The addition of TYRVAYA meaningfully expands Harrow’s position in the large and growing U.S. dry eye market and complements VEVYE®, its flagship prescription therapy for DED.
Because TYRVAYA is delivered as a nasal spray rather than an eye drop, it avoids ocular instillation-site reactions; its prescribing information includes no contraindications and no warnings or precautions, and its most common adverse reaction, sneezing, is transient. Chief Executive Officer Mark L. Baum said the two products approach dry eye differently and give eyecare professionals two distinct tools from one organization. “VEVYE remains the cornerstone of our dry eye franchise, while TYRVAYA gives us an established, complementary prescription brand with a unique route of administration and an existing base of physicians who know and use the product,” he said. Baum also said VEVYE addresses the inflammatory component of dry eye disease and TYRVAYA stimulates the body’s natural basal tear production, and that the products may be prescribed separately or together.
President and Chief Financial Officer Andrew Boll said the transaction aligns with an attractive investment, with the primary purchase payment from cash on hand and any additional payments made only if net revenue milestones are achieved. The acquisition is expected to expand Harrow’s commercial organization with new experienced dry eye sales representatives and to create additional opportunities to expand VEVYE adoption across new and existing accounts.
TYRVAYA is expected to contribute more than $30 million in revenue in 2027, with revenue expected to exceed the incremental operating costs required to support the business. Given the anticipated timing of the close and integration, TYRVAYA is expected to contribute modestly to 2026 revenue.