Glaukos Corp. ((GKOS)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Glaukos Corp. recently held its earnings call, revealing a generally positive sentiment driven by strong financial performance and strategic advancements. The company reported record net sales and significant growth in key segments, such as the U.S. glaucoma franchise and international markets. Despite these achievements, challenges persist, including the impact of MAC LCDs on the MIGS market and potential disruptions from proposed CMS reimbursement changes. Nevertheless, the company’s positive achievements and strategic advancements appear to outweigh these challenges.
Record Second Quarter Net Sales
Glaukos reported record second quarter consolidated net sales of $124.1 million, marking a 30% increase on a reported basis and 29% on a constant currency basis compared to the previous year. This impressive growth reflects the company’s strong market position and successful execution of its strategic initiatives.
Strong U.S. Glaucoma Franchise Growth
The U.S. glaucoma franchise delivered record second quarter net sales of $72.3 million, representing a significant year-over-year growth of 45%. This robust performance underscores the franchise’s strong market demand and effective sales strategies.
iDose TR Adoption and Utilization
Sales of iDose TR reached approximately $31 million in the second quarter, showcasing strong commercial momentum. This success is supported by positive clinical outcomes, highlighting the product’s growing acceptance and utilization in the market.
Increased Full Year 2025 Sales Guidance
Glaukos raised its full year 2025 net sales guidance to a range of $480 million to $486 million, up from the previous range of $475 million to $485 million. This upward revision reflects the company’s confidence in its growth trajectory and market opportunities.
International Glaucoma Franchise Performance
The international glaucoma franchise achieved record net sales of $31.3 million, a year-over-year growth of 20% on a reported basis and 15% on a constant currency basis. This performance highlights the company’s successful expansion efforts in international markets.
Corneal Health Pipeline Progress
The FDA’s ongoing NDA review for Epioxa, the next-generation corneal cross-linking therapy, is progressing with a targeted PDUFA date of October 20, 2025. This development is a key milestone in Glaukos’s corneal health pipeline.
Operational and Strategic Investments
Glaukos made strategic investments, including the acquisition of Mobius Therapeutics and the purchase of an additional building at its headquarters. These investments are aimed at enhancing operational capabilities and supporting future growth.
Challenges with MAC LCDs and MIGS Market
The 5 MAC LCDs caused turbulence in the market during the second quarter, affecting the utilization of two MIGS surgical devices in the same procedures. This challenge is expected to continue as a headwind throughout 2025.
Medicaid Drug Rebate Program Impact
The entry into the Medicaid Drug Rebate Program impacted Photrexa’s realized revenues, affecting the Corneal Health franchise. This impact reflects the complexities of navigating regulatory environments.
Proposed CMS Reimbursement Changes
CMS proposed reductions in physician fee reimbursement for several ophthalmology procedures, which could impact future revenues. This proposal presents a potential challenge for Glaukos’s financial outlook.
Anticipated Disruption with Corneal Health Transition
Potential transient disruption is anticipated as the market transitions from Photrexa to Epioxa following its approval. This transition highlights the dynamic nature of the corneal health market.
Forward-Looking Guidance
During the earnings call, Glaukos provided forward-looking guidance, emphasizing its record consolidated net sales of $124.1 million, a 30% increase on a reported basis. The company raised its full-year 2025 net sales guidance to a range of $480 million to $486 million, reflecting its confidence in continued growth. Glaukos aims to advance its mission of transforming vision care through expanding interventional glaucoma initiatives, regulatory progress, and commercial launches.
In conclusion, Glaukos Corp.’s earnings call highlighted a positive sentiment driven by strong financial performance and strategic advancements. Despite facing challenges such as MAC LCDs and proposed CMS reimbursement changes, the company’s record net sales and growth in key segments underscore its robust market position. Looking forward, Glaukos remains focused on expanding its initiatives and advancing its mission of transforming vision care.