Three Orange County healthcare companies reported first-quarter results earlier this month.
Both RxSight Inc. and Tarsus Pharmaceuticals Inc. fell following their earnings reports, with RxSight dropping 14% in the subsequent trading session.
First quarter revenue for Aliso Viejo-based RxSight, the maker of lenses for cataracts, was down 19% to $30.9 million, reflecting lower sales of the company’s machines used by surgeons to customize patients’ lens adjustments after surgery.
The decline was “consistent with expectations,” according to RxSight.
“When I look at where we are today, the business appears to be stabilizing, and our customer engagement programs are beginning to show initial progress,” Chief Executive Ron Kurtz said during the company’s May 6 earnings call.
Net loss nearly doubled to $15.9 million from $8.2 million the prior year, while total operating expenses increased 5.8% to $41.3 million as the company continued expanding its global commercial and support teams. RxSight hit a milestone towards this goal last month when it received approval for its Light Adjustable Lens (LAL) and Light Delivery Device (LDD) systems in New Zealand.
RxSight also reaffirmed full year revenue guidance of $120 million to $135 million (Nasdaq: RXST).
Xdemvy Sales Jump 85% to $145M
Shares in Tarsus Pharmaceuticals decreased 1.2% despite revenue of $162 million surpassing the Zacks Consensus Estimate by 9.6%. The main driver was net sales of Xdemvy, the first and only FDA-approved treatment for inflammatory eye disease, Demodex blepharitis, which increased 85% year-over-year to $145 million.
The Irvine-based biopharmaceutical company also reported a narrower-than-expected loss of 16 cents per share versus the projected 40 cents per share loss (Nasdaq: TARS).
Tarsus CEO Bobak “Bobby” Azamian attributed the growth to expanding utilization from eye care physicians across practices and said they are applying the same playbook to other diseases with clear root causes and unmet needs.
During the first quarter, the company initiated a 700-participant Phase II trial for an oral tablet to prevent Lyme disease. Another Phase II trial investigating an ophthalmic gel for ocular rosacea is also underway, with topline data for both trials expected in the first half of 2027.
At press time, Tarsus shares traded at $65.29 each with a $2.8 billion market cap. The shares are up six-fold in the past 30 months.
CareTrust Raises Full-Year Guidance
While RxSight and Tarsus saw their shares slip after first-quarter results, San Clemente-based real estate investor in healthcare facilities CareTrust REIT Inc. gained 5.3% after raising its full-year guidance.
CareTrust is now projecting net income of $1.49 to $1.53 per share, up from a prior forecast of $1.45 to $1.50.
Funds from operations (FFO), a key metric for REITS, was $107.4 million, or 48 cents per share—representing a 14% increase from the year prior.
“The first quarter was a strong start to the year and a continuation of the momentum we have been generating over the past several years,” CareTrust CEO Dave Sedgwick told analysts during the company’s May 7 earnings call.
Sedgwick said that the company closed on approximately $245 million investments in the first quarter and $360 million in potential transactions in the pipeline.
Last month, CareTrust announced the $628 million acquisition of 15 skilled nursing facilities in California, four care homes in the United Kingdom and one skilled nursing facility in Wyoming. The company has closed on $1.1 billion in investments year to date.
