MIGS-related net sales for the San Clemente ophthalmic medical technology and pharmaceutical company, with a recent market cap of $3.5 billion, grew 22% to $53.7 million in the first quarter. That’s just shy of pre-pandemic sales of $54 million in the first quarter of 2019; MIGS-related sales accounted for 79% of the company’s overall revenue of $68 million in the period.
Glaukos’ products are used to treat glaucoma, corneal disorders, and retinal disease.
Its initial MIGS product was first released in 2012. The company’s eye stents are one of the smallest medical devices known to be implanted in the human body; they are used to relieve pressure in the eye.
The company went public in 2015 at $18 a share. Its stock now trades at around $72 a share and has nearly doubled in price over the past year.
Ivantis Litigation
The company is facing more competition in the MIGS marketplace with new entrants such as Irvine-based Ivantis Inc. The two local firms are involved in a patent infringement lawsuit, and a trial is scheduled to take place in September assuming the courtrooms here reopen as planned, officials said. Still, Glaukos’ executives believe new product introductions and access to existing accounts and relationships are already benefiting the business and its positioning relative to the competition.
“During the first quarter, we advanced the U.S. commercial rollout of iStent inject W, our newest MIGS technology designed to offer ophthalmic surgeons the same established safety and efficacy of iStent inject with added benefits designed to optimize stent visualization, streamline implantation and deliver procedural predictability,” Chief Executive Tom Burns told analysts on the company’s earnings call this month.
Surgeon Expansion Plans
Burns said that “99.8% of our inject sales in the first quarter were iStent inject W, strong evidence of both our rapid commercial rollout progress and the overall marketplace acceptance of this important technology.”
Jeffries highlighted the replacement rate in an analyst report, noting “These results coincide with our recent checks that suggest ease-of-use is far superior [for] Inject, and should drive adoption beyond the [3,000-to-4,000 doctors] currently trained on iStent into the ~9K U.S.-based cataract surgeons. As a result, W drove share recapture within [the first quarter] and these trends should continue.”
Robust Pipeline
Glaukos is no longer just a device maker.
In late 2019, it paid $500 million in cash and stock for Avedro Inc., a hybrid ophthalmic pharmaceutical and medical technology company focused on developing therapies that treat corneal diseases and other related issues.
Between Avedro’s products and its own internal R&D efforts, the company is “excited about our long-term future, where in just the next three years we expect to have several major new product introductions,” Burns said.
The company’s headquarters move to a new campus in Aliso Viejo is still in the works, but has been delayed due to the pandemic.
It kicked off the construction phase of its expansion this quarter, spending about $17.2 million on property and equipment purchases primarily related to its Aliso Viejo facility, regulatory filings show.
A majority of Glaukos’ workforce has been working remotely, though it has “maintained streamlined manufacturing and assembly processes in order to consistently provide product to our customers who depend on us,” the company said in its latest quarterly report.
“As we passed the anniversary of the initial pandemic-related shutdowns and reflect on this past year that has challenged all of us in extraordinary ways, I'm confident that we have evolved into a more efficient and stronger company, well-positioned to advance our mission and execute our ambitious plans,” Burns told analysts.
