Glaukos Corp (GKOS) Q1 2024 Earnings Call Transcript Highlights: Robust Growth and Strategic ...

• Consolidated Net Sales: $85.6 million, up 16% year-over-year.

• Full Year Net Sales Guidance: Increased to $357 million to $365 million.

• U.S. Glaucoma Franchise Sales: 20% year-over-year growth.

• International Glaucoma Franchise Sales: $25.2 million, 20% growth reported, 21% on a constant currency basis.

• Corneal Health Franchise Sales: $18.4 million, 4% year-over-year growth.

• Photrexa Sales: $15.1 million, 7% year-over-year growth.

• Warning! GuruFocus has detected 8 Warning Signs with GKOS.

Release Date: May 01, 2024

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

Positive Points

• Glaukos Corp reported record first quarter consolidated net sales of $85.6 million, up 16% versus the year ago quarter.

• Full year 2024 net sales guidance range increased to $357 million to $365 million, reflecting strong start to the year.

• 20% year-over-year growth achieved in both U.S. and international glaucoma franchises.

• Successful initial phases of controlled launch plan for Eidos TR, with positive feedback and outcomes from early access surgeons.

• Significant advancements in market access initiatives, including CMS assigning a unique permanent J code for Eidos TR, effective July 1, 2024.

Negative Points

• Challenges with foreign currency fluctuations impacting business operations.

• MDRP entry related headwinds expected to persist throughout the year, impacting corneal health franchise.

• Increased competition in the glaucoma treatment market could impact market share.

• Dependence on successful commercialization and adoption of new products like Eidos TR for future growth.

• Potential volatility in gross margins due to inefficiencies as new products like Eidos TR ramp up.

Q & A Highlights

Q: Can you talk about the changes to the full year revenue outlook? A: Joseph Gilliam, President and COO, explained that the improved guidance reflects a stronger than expected start to the year. Key considerations include the early stages of the Eidos launch, stent growth driven by timing of launch activities, and foreign exchange headwinds. The corneal health franchise is expected to face headwinds from the Medicaid Drug Rebate Program.

Q: Could you elaborate on the high-dose Trio product and its portfolio fit? A: Thomas Burns, CEO, mentioned that the development aims to create a more minimally invasive product with an applicator suitable for a smaller incision, aligning with in-office procedures. The expected introduction is around late 2025.

Q: How are you managing the initial high-dose TR cases and surgeon training? A: Joseph Gilliam noted that initial training and cases are progressing well, with positive feedback. The company is expanding access methodically, focusing on training and market access initiatives.

Q: What impact is Eidos having on the base business, particularly in terms of market growth and share? A: Joseph Gilliam highlighted that the presence of new technologies like Eidos is helping to grow the overall market and possibly aiding in market share gains due to increased engagement in accounts.

Q: Can you provide insights into the ramp-up of Eidos, especially with the upcoming J-code effect? A: Joseph Gilliam discussed that significant adoption is expected in the second half of the year, particularly in Q4, as the J-code and ASP reimbursement become effective, facilitating a more normalized reimbursement process.

Q: How are surgeon training and Eidos integration into clinical workflows progressing? A: Joseph Gilliam indicated that training is tailored to integrate Eidos into surgeons' clinical algorithms, focusing on standalone utilization. The training expansion will continue, especially as reimbursement becomes more streamlined.

These highlights from the Glaukos Corp earnings call provide insights into the company's financial adjustments, product development strategies, and the integration and impact of new technologies like Eidos on their business operations and market dynamics.

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

This article first appeared on GuruFocus.