• Consolidated Net Sales: $96.7 million, up 24% year-over-year.
• Full Year 2024 Net Sales Guidance: Raised to $377 million to $379 million from $370 million to $376 million.
• US Glaucoma Franchise Sales: $51.6 million, 35% year-over-year growth.
• International Glaucoma Franchise Sales: $24.5 million, 21% year-over-year growth.
• Corneal Health Franchise Sales: $20.6 million, 5% year-over-year growth.
• Photrexa Net Sales: $17.9 million.
• Convertible Senior Notes Redemption: Notice issued for $57.5 billion principal amount outstanding, due 2027.

• Warning! GuruFocus has detected 6 Warning Signs with GKOS.

Release Date: November 04, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Glaukos Corp (NYSE:GKOS) reported record third-quarter consolidated net sales of $96.7 million, marking a 24% increase compared to the previous year.
• The company raised its full-year 2024 net sales guidance range to $377 million to $379 million, up from the previous range of $370 million to $376 million.
• Strong performance was driven by both US and international glaucoma franchises, with US glaucoma sales reaching $51.6 million, a 35% year-over-year growth.
• The iDose TR launch is progressing well, with positive feedback from trained surgeons and growing utilization, indicating potential to reshape glaucoma management.
• Glaukos Corp (NYSE:GKOS) successfully advanced its pipeline, including positive top-line outcomes in the second Phase 3 pivotal study for Epioxa, supporting an NDA submission by the end of 2024.

Negative Points

• The company anticipates some transient turbulence as providers navigate potential impacts associated with new LCDs for iStent Infinite.
• International glaucoma sales growth may face headwinds due to currency fluctuations and increased competition in key markets.
• The corneal health franchise experienced only 5% year-over-year growth, with anticipated declines in the fourth quarter due to MDRP impacts.
• Reimbursement confidence for iDose TR is still developing, with some MACs not yet providing consistent payment, potentially affecting adoption rates.
• The company is not yet focusing on profitability, with cash flow break-even being the near-term goal, indicating ongoing investment needs.

Q & A Highlights

Q: Can you discuss the top learnings from the iDose launch over the past year and the key factors affecting iDose revenue in the upcoming quarters? A: Joseph Gilliam, President and COO, highlighted that clinical outcomes have been very positive, which is crucial for long-term success. The importance of reimbursement confidence was also emphasized as a key factor for broader clinical adoption. Looking ahead, the focus will be on achieving consistent professional fee payments and expanding coverage into commercial and Medicare Advantage plans throughout 2025.

Q: Can you provide insights into the utilization trends for iDose among doctors and any surprises in adoption? A: Joseph Gilliam noted that most doctors start with a few cases to build reimbursement confidence. Encouragingly, in regions with normalized payment schedules, there is a growing trend of surgeons incorporating iDose into routine clinical practice, indicating expanding utilization.

Q: What is the outlook for Epioxa's approval and its impact on the corneal health business? A: Thomas Burns, CEO, expressed confidence in Epioxa's approval, citing positive Phase 3 results and FDA feedback. Epioxa is expected to significantly enhance patient comfort and procedural efficiency. The NDA submission is planned for the end of 2024, with potential growth catalysts anticipated in 2026 and beyond.

Q: How is the company addressing the reimbursement dynamics for iDose, and what progress has been made? A: Joseph Gilliam explained that progress is being made with two MACs paying efficiently and others improving. The goal is to have reimbursement processes streamlined by 2025, ensuring consistent and predictable payments across all MACs.

Q: What are the expectations for iDose's impact on gross margins and operating expenses in the near term? A: Alex Thurman, CFO, stated that iDose is currently a modest drag on gross margins but is expected to become accretive by the end of next year as volumes increase. Operating expenses are projected to grow by about 10% in 2024, with further guidance for 2025 to be provided in the next earnings call.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.