Harrow closes $30m TYRVAYA acquisition from Viatris

Harrow (Nasdaq: HROW) has completed its acquisition of TYRVAYA (varenicline solution) nasal spray 0.03 mg from Viatris, paying $30 million in cash at closing and committing to up to $70 million in contingent milestone payments tied to net sales. The deal, first announced in August, gives Harrow worldwide commercial rights to TYRVAYA with the exception of Japan, where Viatris retains commercialisation rights but will pay Harrow royalties on future net sales.

TYRVAYA is a cholinergic agonist that works via a distinct mechanism from conventional topical eye drops. Administered intranasally, it is thought to activate the trigeminal parasympathetic pathway to stimulate basal tear production. It holds FDA approval in the United States, and is also approved in China and Taiwan, with marketing applications pending in further markets.

Expanding the dry eye franchise

The acquisition adds a second branded prescription product to Harrow's ophthalmic portfolio, sitting alongside VEVYE (cyclosporine ophthalmic solution 0.1%), its flagship dry eye therapy. The two products approach the disease differently: VEVYE acts directly on the ocular surface, while TYRVAYA's nasal route bypasses the eye entirely, a distinction that chief executive Mark L. Baum said gives prescribers meaningful flexibility when managing individual patients.

"Dry eye disease is complex and multifactorial, and there is no single treatment approach that works for every patient," Baum said. "VEVYE and TYRVAYA approach dry eye differently and give eyecare professionals two distinct tools from one organisation committed to serving this market."

Harrow expects approximately 40 experienced personnel from Viatris to join its Ocular Surface commercial team during the fourth quarter of 2026, materially expanding its field force. Both products will be supported by a shared specialty pharmacy partner, PhilRx, and a single commercial infrastructure, which the company says should drive efficiency as the integration progresses. Harrow projects TYRVAYA will contribute more than $30 million in revenue in 2027.

Market context and competitive landscape

The US dry eye disease market is one of the most actively contested segments in ophthalmology, with an estimated tens of millions of sufferers and a well-established commercial infrastructure of ophthalmologists and optometrists. Approved therapies range from over-the-counter artificial tears to prescription immunomodulators such as cyclosporine and lifitegrast, as well as newer biologics and procedural options. TYRVAYA's nasal delivery mechanism is notably distinct, and Harrow is positioning the product as complementary rather than directly competitive with topical agents.

Harrow's strategy of building a two-brand prescription dry eye portfolio mirrors a broader trend among mid-sized ophthalmology-focused companies seeking to maximise commercial efficiency by leveraging a single field force across multiple branded assets. The company already operates a compounding pharmacy business serving back-of-eye conditions, and the TYRVAYA acquisition represents a further commitment to building its front-of-eye franchise through branded prescriptions rather than compounded formulations alone.

Regulatory-wise, the pending marketing applications in additional international markets could provide incremental upside beyond the core US business, though the timeline and scope of those submissions were not disclosed. The royalty arrangement on Japanese sales also provides a modest ongoing revenue stream without the cost of a direct commercial presence there.

With integration of the Viatris personnel planned for the fourth quarter and TYRVAYA already stocked in major wholesale channels including McKesson, Cardinal, and Cencora, Harrow is aiming for a commercially seamless transition with minimal disruption to existing prescribers.