Glaukos Corp. ((GKOS)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Glaukos Corp. Soars with Record Sales Amid Challenges
The earnings call for Glaukos Corp. painted a picture of robust performance, showcasing record sales growth propelled by its U.S. and international glaucoma franchises and positive clinical advancements. Despite facing hurdles such as LCD impacts, foreign exchange headwinds, and Medicaid rebate effects on corneal health, the company remains positive about its strategic direction and financial standing.
Record Fourth Quarter and Full-Year 2024 Sales
Glaukos Corp. reported a remarkable fourth quarter with consolidated net sales hitting $105.5 million, marking a 28% increase year-over-year. The full-year 2024 saw consolidated net sales of $383.5 million, up 22% from the previous year. These figures underscore the company’s strong market performance.
Strong Growth in U.S. Glaucoma Franchise
The U.S. glaucoma franchise was a key driver of Glaukos’ success, delivering fourth-quarter net sales of $56.3 million, a staggering 45% increase from the previous year. This growth was largely fueled by the success of the iDose TR, highlighting the franchise’s significant contribution to the company’s overall performance.
Positive Clinical Developments for iDose TR
Further bolstering investor confidence, Glaukos announced positive 36-month follow-up results from the Phase III trials of iDose TR and initiated the Phase 2b/3 program for iDose TREX. These clinical developments indicate promising advancements in their product pipeline.
Strong International Glaucoma Franchise Performance
Internationally, the glaucoma franchise continued to shine with record net sales of $27.9 million, reflecting a 28% growth. This performance underscores the global reach and acceptance of Glaukos’ offerings.
NDA Submission for Epioxa
In a significant development, Glaukos submitted a New Drug Application (NDA) for Epioxa, a next-generation corneal cross-linking therapy aimed at treating keratoconus, with FDA approval anticipated in 2025.
Solid Financial Position
The company ended 2024 with a strong cash position of $324 million, having retired $287.5 million in convertible senior notes, effectively leaving them with no debt. This solid financial footing provides a cushion for future investments and growth opportunities.
U.S. Stent Growth Affected by LCD Changes
While the growth story is strong, the company faced challenges with new LCD restrictions that slowed non-iDose stent growth to mid-single digits. Projections for 2025 suggest a flat to potentially slight decline in growth for non-iDose revenues due to these changes.
Headwinds from Foreign Exchange and Competitive Products
Glaukos anticipates facing foreign currency exchange headwinds and the trialing of competitive products in international markets, which could pose challenges to growth in certain regions.
Impact of Medicaid Drug Rebate Program on Corneal Health Segment
The corneal health segment, particularly Photrexa, was impacted by the entry into the Medicaid Drug Rebate Program. This is expected to limit growth to low single digits for this segment in 2025.
Forward-Looking Guidance
Looking ahead, Glaukos has set an ambitious net sales guidance range of $475 million to $485 million for 2025. The company aims to build on the momentum from 2024, with a strong focus on expanding its market presence and advancing innovative platforms, despite expected headwinds in some areas.
In conclusion, Glaukos Corp.’s earnings call reflects a company that is thriving, with record sales growth and positive clinical progress. While challenges such as foreign exchange and policy changes pose risks, the company’s strong financial position and forward-looking strategies position it well for continued success in 2025.
