Glaukos (GKOS) 4 Nov 24 2024 Q3 Earnings call transcript

Glaukos Corporation recently held its third quarter 2024 financial results conference call, providing investors and stakeholders with an update on the company's financial health and strategic direction. The call, led by CEO Tom Burns and other key executives, highlighted the company's robust performance in the quarter, marked by record-breaking net sales of $96.7 million, representing a 24% increase compared to the previous year. This achievement was attributed to the successful expansion of the company's U.S. and international glaucoma franchises, fueled by the strong adoption of its innovative interventional glaucoma tools.

Strong Financial Performance and Strategic Growth

The third quarter's record-breaking net sales were primarily driven by the U.S. and international glaucoma franchises, underscoring the company's commitment to advancing glaucoma treatment and driving earlier intervention. The company's goal to revolutionize glaucoma management by leading the way in interventional glaucoma has gained significant momentum, with surgeons and thought leaders globally embracing these new tools. This was evident at the recent AAO Annual Meeting, where the interest and excitement for interventional glaucoma and Glaukos' technologies were high.

In the U.S., the company reported record third quarter sales of $51.6 million, a 35% year-over-year increase, primarily due to the early contributions of iDose TR, alongside continued strong growth within the iStent portfolio, particularly iStent infinite. The successful execution of detailed launch plans for iDose TR, the first-of-its-kind intracameral procedural pharmaceutical, has been a significant catalyst for this growth. The positive feedback from surgeons and outcomes from a growing number of cases further reaffirm the transformative potential of this new treatment alternative for patients suffering from glaucoma and ocular hypertension.

The international glaucoma franchise also delivered strong growth, with sales of $24.5 million, up 21% year-over-year. This success is attributed to the company's efforts to scale its international infrastructure and drive MIGS forward as the standard of care worldwide. The recent French CEPS agreement was favorable to the company's third quarter reported revenues, further highlighting the company's commitment to expanding its global presence.

Strategic Investments and Future Prospects

The company also provided updates on its pipeline of innovative products, including the upcoming Phase III clinical trial for iDose TREX, its next-generation iDose therapy. This trial is expected to commence by the end of 2024, positioning the company to potentially lead the market with a commercial product available before any alternative glaucoma products. Furthermore, Glaukos has entered into licensing agreements with Ripple Therapeutics, positioning the company for potential advancements in the treatment of proliferative retinal diseases and neuroprotection.

Reimbursement and Market Access

The call also addressed the company's ongoing efforts to secure reimbursement and expand market access for its products. In the U.S., the company has made significant progress in securing final MAC LCDs for iStent infinite, aligning with their proposals and establishing coverage consistent with the original reconsideration request. This is expected to be an important step in unlocking remaining Medicare Advantage and Commercial coverage for iStent infinite. The company is also working to ensure a smooth transition from miscellaneous drug codes to the permanent J-code for iDose TR, which became effective July 1, 2024. This move is expected to increase patient access and support the expansion of training plans for surgeons and facilities over time.

Conclusion

Glaukos Corporation's third quarter 2024 earnings call painted a picture of a company on the cusp of transformative growth, driven by its innovative interventional glaucoma tools and strategic investments in its pipeline. The company's strong financial performance, coupled with its commitment to driving earlier intervention and advancing glaucoma treatment, positions it well for continued success in the future. As the company looks to expand its global footprint and lead the way in MIGS, investors and stakeholders remain optimistic about the company's long-term prospects.