
Glaukos Reports Solild 3Q23 but Commentary on Physician Behavior Due to Draft MIGS LCDs Weighs on Stock
11-2-23 (by: Scott Gleason) Glaukos has released its financial results for the third quarter ending on September 30, 2023 with net sales of $78.0 million in the third quarter of 2023, indicating a 10% year-over-year increase. Analysts had forecasted total sales of $75.3 million.
Net sales within the Glaucoma segment amounted to $58.3 million in the third quarter of 2023, demonstrating a notable 9% year-over-year growth. The company noted that it continues to promote its iStent Infinite product, the first standalone microinvasive technology for glaucoma treatment, ahead of Medicare coverage and payment. Management stated that six Medicare Administrative Contractors are undergoing tech assessments for the technology with four proposed LCDs issued that cover the technology. However, there is some concern in language in the LCDs around coverage for certain procedures which will remain an overhang until finalized.
The company also completed its manufacturing inspection as part of its NDA for iDose. iDose is a micro-invasive intraocular implant meticulously crafted to provide a consistent release of a specialized travoprost formulation within the eye for prolonged durations. The primary objective of iDose TR is to tackle the prevalent issues of patient non-compliance and persistent side effects often linked to the usage of topical glaucoma medications.
The Corneal Health segment experienced remarkable growth, with net sales totaling $19.7 million in the third quarter of 2023, marking a 12% year-over-year increase. Management noted that Photexra, the company’s therapeutic treatment for progressive keratoconus and corneal ectasia following refractive surgery, which makes up the majority of revenue, was up 18%. The company also noted that Epioxa, its next generation corneal cross linking technology continues to progress in Phase 3 clinical studies with a planned NDA submission by the end of 2024.
The non-GAAP loss from operations for the same period was $21.8 million, compared to a non-GAAP operating loss of $15.3 million in the third quarter of 2022. The non-GAAP net loss in the third quarter of 2023 was $24.2 million, translating to ($0.50) per diluted share, compared to a non-GAAP net loss of $21.3 million, or ($0.45) per diluted share, in the third quarter of 2022. Street estimates called for adjusted EPS of ($0.55). Glaukos concluded the third quarter of 2023 with approximately $307 million in cash and cash equivalents, short-term investments, and restricted cash showing no pressing liquidity concerns.
The company raised its net sales guidance for 2023 to a range of $307 million to $310 million, above the previously projected range of $304 million to $308 million.
Thomas Burns, Chairman and Chief Executive Officer of Glaukos, expressed pride in the company’s achievements during the third quarter. He attributed the strong performance to the effective execution of global commercial strategies, reflecting Glaukos’ commitment to improving patient outcomes and advancing eye disease treatments.