Key Takeaways

  • Harrow has agreed to acquire Tyrvaya from Viatris for $30 million upfront and as much as $70 million in additional net sales-based milestone payments
  • The nasal spray adds a drop-free, complementary mechanism of action to a Harrow dry eye portfolio anchored by Vevye
  • Harrow expects the transaction to close in the second half of 2026

Harrow has entered into a definitive agreement to acquire Tyrvaya (varenicline solution) nasal spray 0.03 mg from Viatris, expanding the company’s portfolio of treatments for dry eye disease.

Under the agreement, Harrow will pay $30 million in cash at closing, with up to an additional $70 million in contingent payments tied to Tyrvaya net sales. The transaction, which could total up to $100 million, is expected to close in the second half of 2026, subject to customary closing conditions. Harrow said it expects to fund the upfront payment with cash on hand.

Tyrvaya is a cholinergic agonist indicated for the treatment of the signs and symptoms of dry eye disease. The prescription nasal spray is approved in the United States, China, and Taiwan, with marketing authorization applications pending in additional markets.

The acquisition adds another mechanism of action to Harrow’s dry eye portfolio, which includes Vevye. Whereas Vevye is intended to address inflammation associated with dry eye disease, Tyrvaya is administered intranasally and stimulates tear production. Tyrvaya's nasal administration also provides an alternative for patients who have difficulty administering or tolerating topical ophthalmic medications. According to its prescribing information, Tyrvaya has no listed contraindications, warnings, or precautions. Sneezing is its most commonly reported adverse reaction.

“This acquisition is about Harrow’s commitment to offer the most comprehensive set of tools to help U.S. ophthalmologists and optometrists manage their patients’ dry eye disease,” said Mark L. Baum, chief executive officer of Harrow.

Mr. Baum said Tyrvaya could be prescribed either separately from or alongside Vevye, giving clinicians additional flexibility in selecting therapies based on individual patient needs. Harrow also highlighted Tyrvaya as an option for contact lens wearers because the treatment does not require ocular administration or removal of contact lenses before dosing.

“While Vevye remains the cornerstone of our dry eye franchise, Tyrvaya strengthens our foundation by expanding the number of patients and physicians we can serve through a complementary mechanism of action,” Mr.  Baum said.

In addition to Vevye and Tyrvaya, the company’s portfolio includes FreshKote Preservative Free, an over-the-counter lubricant eye drop for temporary relief of dry eye symptoms, and Flarex, a corticosteroid indicated for corticosteroid-responsive inflammatory conditions of the palpebral and bulbar conjunctiva, cornea, and anterior segment of the globe.

In October 2021, Oyster Point Pharma received FDA approval for Tyrvaya the treatment of the signs and symptoms of dry eye disease. The approval marked the first and only nasal spray approved for the treatment of dry eye disease. In November 2022, Viatris announced a deal to acquire Oyster Point Pharma and establish it own eye care division.