San Clemente-based Glaukos Corp. anticipates strong revenue growth next year for its iStent products, based on a guarantee of reimbursement on procedures that use its iStent implant.
Glaukos expects officials of the Center for Medicare and Medicaid Services to grant iStent Category I status under the Current Procedural Terminology code, up from Category III, which keeps reimbursement on a case-by-case basis. The move to Category I would put iStent in the realm of established procedures and ensure reimbursement from the federal agency, a change that’s often viewed as a benchmark by private-sector insurers.
Glaukos Chief Executive Thomas Burns said the company expects increases in revenue from higher reimbursements to start in mid-2017.
“On a net basis, average reimbursement for cataract and iStent procedures combined [will be roughly] $3,027, about 30% higher than 2016,” he said.
Glaukos focuses on the development and commercialization of devices for micro-invasive glaucoma surgery.
The iStent technology increases the eye’s ability to drain fluid by planting a small titanium tube device inside the eye. The implant creates an opening between the eye’s anterior chamber and Schlemm’s canal—a layer of tissue in the lining of the eyeball at the outer periphery of the iris—to allow fluid to drain and alleviate fluid pressure within the eye. The implant is used in conjunction with cataract surgery.
Glaukos also projects significant growth in international sales in the next two to three years. Revenue from international markets—primarily Europe and Japan—currently accounts for about 9% of the company’s total, which was $71.7 million last year.
It wants international sales to account for 15% of total sales in the next few years.
The company has a market cap of about $1.1 billion. It’s building a range of glaucoma disease pipeline products around iStent, including iStent Inject, iStent Supra and iDose. Glaukos’ immediate focus will be iStent Inject, an auto injection inserter with two preloaded stents.
Patient Safety
Medtronic Plc has joined the Irvine-based Patient Safety Movement Foundation by signing the non-profit organization’s Open Data Pledge.
Medtronic will share available acute clinical data generated by its products used in hospitals and outpatient practice settings to better minimize preventable patient complications and death. The company also will provide the foundation with $5 million over a five-year period, and Medtronic CEO Omar Ishrak will join its board of directors.
Medtronic is a diversified medical device maker with U.S. operations based in Minnesota and corporate headquarters in Ireland.
A Medtronic spokesperson declined comment.
The Patient Safety Movement was founded by Joe Kiani, founder and chief executive of Irvine-based medical device maker Masimo Corp.
He started the movement with the goal to reduce the number of preventable deaths in healthcare settings to zero by 2020. An estimated 200,000 patients in the U.S. die each year from infections, medication errors and other preventable causes contracted in hospitals, clinics and other settings.
Medtronic’s commitment to the movement comes after the latest legal settlement involving Masimo—a case that Medtronic inherited with its buy of Nellcor from Covidien Plc last year. Terms of an amendment to a prior settlement, which stemmed from the initial Masimo and Nellcor $330 million settlement in January 2006, call for Medtronic to continue to pay Masimo a royalty of 7.75% of its current pulse oximetry products sold in the U.S. through October 2018.
Bits & Pieces
Edward Lifesciences Foundation, the philanthropic arm of Irvine-based Edward Lifesciences Corp., awarded Sepsis Alliance a $50,000 grant to raise awareness about the condition. Sepsis, or blood poisoning, is the third leading cause of death in the U.S. Edwards makes replacement heart valves and other cardiovascular devices, with a market cap close to $20 billion. … Lake Forest-based Summit Healthcare REIT Inc. has paid $23 million for 20% interests in each of two senior living facilities—a 78-bed assisted living and memory care facility in Citrus Heights, Calif.; and a 48-bed memory care facility in Corvallis, Ore. The facilities have been leased to an affiliate of Eugene, Ore.-based Compass Senior Living LLC. The senior housing-focused real estate investment trust said it is interested in purchasing different types of senior housing facilities to better cater to the senior population, including independent living, skilled nursing, assisted living, memory care and continuing-care retirement communities. The REIT has an 11-property portfolio. … Newport Beach-based Clearwater Senior Living appointed Danielle Morgan president. Morgan previously served as chief operations officer of MBK Senior Living in Irvine.
