Glaukos(US:GKOS)2025-11-18 17:02Summary of Glaukos Conference Call Company Overview - Company: Glaukos Corporation - Industry: Medical Technology, specifically focused on glaucoma treatment and corneal health Key Financial Highlights - Q3 Revenue: $133.5 million, a record quarter for Glaukos - US Glaucoma Revenue: $81 million, representing a 57% year-over-year growth [4][5] - International Glaucoma Revenue: $29 million, a 20% growth rate (17% on a constant currency basis) [4] - Corneal Health Revenue: $23 million, a 13% year-over-year growth [4] - Gross Margin: Reached almost 84%, driven by the high-margin product iDose [5][57] - Cash Balance: $277.5 million, slightly down from the previous quarter [6] Product Performance - iDose: - Contributed significantly to revenue growth, with 80% of volumes coming from three MACs (Noridian, Novitas, First Coast) [7][8] - Anticipated growth as more MACs establish pro fees, with NGS added recently [8][9] - Expected to drive utilization growth as operationalization takes time [9][10] - Epiox: - Announced pricing at $78,500 per eye, with expected net ASP between $65,000-$70,000 after discounts [31][33] - Targeting a mix of buy-and-bill and specialty pharmacy distribution models [34][35] - Anticipated to launch in early next year, with a focus on establishing a site of care network [36][37] Market Dynamics - Commercial Coverage: Approximately 50% of commercial plans currently cover iDose, with a significant portion of silent coverage [18][19] - Patient Demographics: The patient mix for iDose trials was approximately 50% Medicare-aged and 50% commercial-aged, indicating a potential shift in commercial usage over time [19] - Utilization Trends: Currently focused on glaucoma patients, with potential for treating ocular hypertension patients in the future [23] Strategic Insights - Surgeon Training: Surgeons are being trained at a healthy pace, with no significant barriers to adoption noted [16][17] - Market Growth: Anticipated recovery in the core MIGS market as LCD headwinds are overcome, with a focus on iDose as a primary growth driver [50][51] - Cannibalization Concerns: Some cannibalization of iStent by iDose is expected, but both products are seen as complementary [53] Future Outlook - 2026 Revenue Guidance: Preliminary guidance of $600 million-$620 million, driven by multiple revenue streams including iDose and Epiox [55][56] - Margin Expectations: Continued improvement in gross margins expected as iDose and Epiox become a larger part of the business [57][58] - Investment in R&D: Plans to maintain a robust R&D pipeline while balancing operating expenses to achieve cash flow breakeven in the near term [59] Additional Considerations - Educational Efforts: Ongoing education for MACs and physicians regarding the clinical evidence supporting iDose is crucial for broader adoption [24][28] - Patient Access: Strategies in place to ensure patient access to Epiox, including trade-in programs for existing equipment [41][44] This summary encapsulates the key points discussed during the Glaukos conference call, highlighting financial performance, product insights, market dynamics, and future strategies.