Glaukos Q1 2025 Earnings Call Transcript

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April 30, 2025
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Operator

Welcome to the Glycos Corporation First Quarter twenty twenty five Financial Results Conference Call. Copies of the company's press release and quarterly summary document, both issued after the market closed today, are available at www.glycos.com. As a reminder, all lines are muted until the end of today's presentation, where we will have a question and answer session. This call is being recorded and an archived replay will be made available on the online in the Investor Relations section of www.glycos.com. I will now turn today's call over to Chris Lewis, Vice President of Investor Relations and Corporate Affairs.

Operator

Please go ahead.

Chris Lewis
Chris Lewis
VP, IR and Corporate Affairs at Glaukos

Thank you, and good afternoon. Joining me today are Glaukos' Chairman and CEO, Tom Burns President and COO, Joe Gilliam and CFO, Alex Thurman. Similar to prior quarters, the company has posted a document on its Investor Relations website under the Financials and Filings Quarterly Results section titled Quarterly Summary. This document is designed to provide the investment community with a summarized and easily accessible reference document that details key facts associated with the quarter the state of the company's business objectives and strategies, and any forward statements or guidance we may make. This document is designed to be read by investors before the regularly scheduled quarterly conference call.

Chris Lewis
Chris Lewis
VP, IR and Corporate Affairs at Glaukos

As such, for this call, we will make brief prepared remarks and transition into a question and answer session. To ensure ample time and opportunity to address everyone's questions, we request that you limit yourself to one question and one follow-up. If you still have additional questions, you may get back into the queue. Please note that all statements other than statements of historical facts made on this call that address activities, events or developments we expect, believe or anticipate will or may occur in the future are forward looking statements. These include statements about our plans, objectives, strategies and prospects regarding, among other things, our sales, products, pipeline technologies and clinical trials, U.

Chris Lewis
Chris Lewis
VP, IR and Corporate Affairs at Glaukos

S. And international commercialization, market development efforts, the efficacy of our current and future products, competitive market position, regulatory strategies and reimbursement for our products, financial condition and results of operations, as well as the expected impact of general macroeconomic conditions, including foreign currency fluctuations on our business and operations. Statements are based on current expectations about future events affecting us and are subject to risks, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Therefore, they may cause our actual results to differ materially from those expressed or implied by forward looking statements. Review today's press release and our recent SEC filings for more information about these risk factors.

Chris Lewis
Chris Lewis
VP, IR and Corporate Affairs at Glaukos

You'll find these documents in the Investor Relations section of our website at www.glaukos.com. Finally, please note that during today's call, we will also discuss certain non GAAP financial measures, including results on an adjusted basis. We believe these financial measures can facilitate a more complete analysis and greater transparency into Glaukust's ongoing results of operations, particularly when comparing underlying results from period to period. Please refer to the tables in our earnings press release available in the Investor Relations section of our website for a reconciliation of these measures to their most directly comparable GAAP financial measure. With that, I will turn the call over to Glaukos' Chairman and CEO, Tom Burns.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

Okay. Thank you, Chris. Good afternoon, and thank you all for joining us. Today, Glaukos reported record first quarter consolidated net sales of $106,700,000 up 25% on a reported basis or 26% on a constant currency basis versus the year ago quarter. We are also reaffirming our full year 2025 net sales guidance range of four seventy five million dollars to $485,000,000 as we balance our first quarter outperformance while continuing to closely monitor the global macroeconomic environment and associated uncertainties.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

Our first quarter record results reflect the sustained growth acceleration in our business with strong performance driven by iDoseTR adoption and both our U. S. And international glaucoma franchises overall. Our continued growth trajectory globally is the result of our ongoing efforts to pioneer and develop the Interventional Glaucoma, or IG, marketplace with new standalone therapies designed to slow disease progression and reduce drug burden for the benefit of physicians and patients. These efforts were on full display at the AGS conference in February and more recently at the ASCRS Annual Meeting last weekend where the interest and excitement levels for interventional glaucoma and our technologies were high.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

While we remain in the early stages of these IG efforts, we are encouraged with the increasing levels of clinical interest for this paradigm changing evolution. Within our U. S. Glaucoma franchise, we delivered record first quarter net sales of $59,100,000 on strong year over year growth of 41%, driven by growing contributions from iDoseTR, a first of its kind intracameral procedural pharmaceutical that was designed to continuously deliver glaucoma drug therapy for up to three years. Importantly, clinical outcomes and product feedback from a growing number of cases and trained surgeons continue to be very positive and reaffirms our view that with the launch of iDoseTR, we are pioneering a brand new therapeutic category that has the potential to reshape glaucoma management as we know it today.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

Operationally, our teams continue to make great progress in the execution of our detailed launch plans for iDoseTR, including first, growing the universe of trained surgeons and accounts second, expanding utilization of the installed active surgeon base third, broadening and streamlining market access among MACs, commercial and Medicare Advantage payers Four, expanding the robust body of clinical evidence. And fifth, accelerating marketing investments to support increased patient awareness and education. Overall, while we remain in the early '80s, I couldn't be more pleased with the strong foundation we've built to bring this transformative technology to market and expand the treatment alternatives for patients suffering with glaucoma and ocular hypertension. Shifting to our U. S.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

Stent business, as anticipated, with five MAC LCDs implemented in the fourth quarter of twenty twenty four continue to cause some transient turbulence in the market during the first quarter as surgeons navigate restrictions on using two surgical devices in the same procedure. We expect this MACE market headwind will continue over the course of 2025 as providers continue to navigate the impacts associated with these LCDs until it anniversaries later this year. Moving on, our interventional glaucoma franchise also delivered record net sales of $29,000,000 on a year over year growth of 15% on a reported basis and 19% on a constant currency basis. The strong growth was once again broad based as we continue to scale our international infrastructure and execute our plans to drive MIGS forward as the standard of care in each region and major market in the world. We remain in the early stages of expanding our IG and product portfolio initiatives globally, ahead of anticipated new product approvals and expanding market access in the years to come.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

As previously discussed, we expect the trialing of new competitive products in some of our major international markets may become an increasing headwind as we progress through 2025. And finally, our corneal health franchise delivered net sales of $18,500,000 including Vetrexa net sales of $15,400,000 As discussed throughout 2024, our first quarter results reflect the continued impact of Vetrexa realized revenues as a result of our entry as a company into the Medicare drug rebate program or NVRP. Shifting gears to our corneal health pipeline. During the first quarter, we announced FDA acceptance for review of the previously submitted NDA for Epioxa, our next generation corneal cross linking eye link therapy for the treatment of keratoconus, a rarely diagnosed site driving disease. This important milestone brings us one step closer in being able to provide keratoconus patients in the ophthalmic community with the first FDA approved non invasive corneal cross linking drug therapy that does not require the removal of the corneal epithelium, the outermost layer of the front of the eye.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

We look forward to working closely with the FDA in their pending review process as we progress towards the agency's established PDUFA date of 10/20/2025. Alongside this, our teams continue to make nice progress with the preparation and planning of the Epioxa commercial launch targeted for next year. It is worth reminding investors that an Epioxa approval also provides us with the opportunity to launch this pharmaceutical therapy supported by the right long term pillars to optimize patient access, a persistent and at times frustrating challenge for us historically with Valtrexone. We continue to believe that Epioxa, which is designed to preserve the corneal epithelium, streamline procedure times, improve patient comfort and shorten recovery time, represents a potentially meaningful advancement in the treatment paradigm for patients suffering from keratoconus. Beyond Epioxo, we're also pleased to share we recently commenced a five ten pivotal study under FDA ID for the Presser Flow MicroShunt, an AV external system designed to help drain excess fluid from the eye and reduce intraocular pressure in refractory glaucoma patients.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

Our commercialization efforts of Presser Flow in Canada, Australia, and several Latin American countries have reaffirmed the strong appetite within the global ophthalmic community for this technology as a more elegant, better tolerated, and external alternative to conventional filtration surgeries for late stage glaucoma management. Additionally, we continue to advance several other important clinical trials, including one, a PMA pivotal trial for iStim infinite mild to moderate glaucoma patients Two, phase two trials for our ILEC third generation therapy. Three, a first in human clinical development or GLK-four zero one, our intravitreal multi kinase inhibitor retinal program in wet AMD patients where we now also have an open US FDA IND. And four, a Phase 2bthree clinical program for iDose Tregs, our next generation iDose therapy. Finally, we remain on track to file a U.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

S. FDA IND's commenced clinical study for Ilucian, devidex plus RNs later this year. As you can see, we have a lot to be excited about when it comes to the significant potential value that we believe our pipeline programs may create. At the same time, as we consistently discuss, we continue to prioritize the cadence of our investments as we strive to strike the right balance of risk based investments in our capital position now and in the future. To that end, we ended the first quarter of twenty twenty five at a strong capital position with cash and equivalents of more than $3.00 $3,000,000 and no debt.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

This has allowed us to continue to be active on the business development front with a focus on transactions that support our existing organic growth initiatives. One such example of this is our recently announced expanded collaboration with Radius XR and Topcon Healthcare that enables us to accelerate our global efforts to bring the tools and software solutions needed to democratize the diagnosis of glaucoma and in turn create more efficient care networks for patients afflicted with this lifelong disease. Finally, given the ongoing conversations around tariff and geopolitical issues, we wanted to highlight that we manufacture and source our products primarily within The United States. And as such, we expect minimal direct exposure to the most recently implemented tariff related policies. In conclusion, I am very pleased with the record quarter and strong momentum in our business as we continue to successfully advance our mission to truly transform vision by pioneering novel drop list platforms that can meaningfully advance standard of care and improve outcomes for patients suffering from sight threatening chronic eye diseases.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

So with that, I'll open the call for questions. Operator?

Operator

Your first question is from the line of Tom Steven with Stifel.

Thomas Stephan
Thomas Stephan
Vice President at Stifel Financial

Great. Hey, guys. Thanks for taking the questions. I guess, first, to start off, would you be able to provide U. S.

Thomas Stephan
Thomas Stephan
Vice President at Stifel Financial

Spend growth in the quarter? And as a tack on to that, Joe or Tom, maybe if you can talk more about what you're seeing in terms of how doctors are reacting from a share standpoint to the LCD so far this year and expectations looking ahead for U. S. Mix?

Thomas Stephan
Thomas Stephan
Vice President at Stifel Financial

Thanks.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Tom. It's Joe. I'll start off, and then Tom can add any additional color that he might have for the conversations he had, including this past weekend at ASCRS. In the first quarter, we really saw The US Glaucoma business.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

You've the reported overall 40 plus percent year over year growth and the five percent sequential growth. And as it might be expected, that was entirely driven by the continued expansion of iDoseTR and offset by the impact of these LCD restrictions. They were modestly more pronounced than expected on our stent franchise. And in total, we saw a mid single digit, decline year over year. So we're going to continue to probably forecast that for the foreseeable future here as we continue to navigate the potential impact of those LCD restrictions on our customers.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

You know it's somewhat uniquely challenging for us to forecast given, you know, we estimate that, the LCD changes remove 10% to 15% of the mix volume, if you will, in 2025 when compared to 2024. But for us, that's also somewhat offset by growing stand alone use utilization of ICE than Infinite and confounded, obviously, by the prioritization of elevated, associated with items TR. So, you know, from a from a macro standpoint, despite the 10% to 15%, call it, headwind in the combo cataract mix, our sense is that we're holding our own. And the fact that we've experienced a mid single digit decline in the first quarter is probably a relative positive in the context of the overall market dynamics throughout that quarter. As it relates to doctors, I think it's very specific to their own decisions and algorithms and how they make those those selections.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Obviously, they're disappointed by the fact that the clinical decision making has been taken out of out of their hands and and being determined by an insurer, in this case, a medical director or a MAC. But they're navigating that, and and perhaps, they'll be focused more on a serial approach to the glaucoma care versus trying to do it combinatorially in a single procedure.

Thomas Stephan
Thomas Stephan
Vice President at Stifel Financial

That makes sense. Really helpful. And then my follow-up, pivoting to iDose, I wanted to ask about Noridian specifically. It's been the most advanced MAC in terms of reimbursement. I think exiting last year was the only one with kind of streamlined J code reimbursement and a professional fee on the fee schedule.

Thomas Stephan
Thomas Stephan
Vice President at Stifel Financial

So Joe or Tom, have you seen or are you seeing any sort of inflection or acceleration in Meridian, you know, again, with reimbursement in a solid place? And then is it fair to view Meridian maybe as sort of an analog for when the rest of the MAX come up to speed? Thanks.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yeah, Tom. I I think, clearly, Meridian is the the the first case study that we can, you know, watch, assess, and then extrapolate in terms of what it can mean for, the other the other Macs as they come online. And and in fact, in some ways, what we've been seeing, as of late in Novitas and the First Coast, validates that assumption that that the the trend lines, are somewhat consistent, and the timelines associated with those trend lines are somewhat consistent. You know, sometimes, as these milestones are knocked down or or as the adjudication becomes more streamlined, it it takes a little bit of time for that to translate both for the Salesforce, the customer, to their, you know, scheduling and and staffing as well as ultimately the procedures attached to it. But what we are seeing is is con continued solid and expanding growth.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

You know, you you you referenced Meridian specifically given it's it was there first. And and it shouldn't surprise you that, you know, despite being around 20% of the covered lives, its percentage of our overall, you know, iGUE's contribution is is something close to double that given, the dynamics at play there.

Operator

Your next question is from the line of Ryan Zimmerman with BTIG.

Ryan Zimmerman
Managing Director & Medical Technology Analyst at BTIG

Hey, excuse me. Good afternoon. Thanks for taking our question. Last quarter, Joe, you gave some commentary on kind of the components of guidance from a growth perspective. You've beat now for the having the first quarter behind you, guidance is staying the same.

Ryan Zimmerman
Managing Director & Medical Technology Analyst at BTIG

Maybe I'd be curious to know kind of where you stand on some of those components within your guidance, obviously with an emphasis on kind of the stem versus iDose franchises and contributions And or if those still hold, then remind us what those are as we think about guidance today.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yes. Happy to do that, Brian. Obviously, the first quarter was strong from a performance perspective with the 25% growth and certainly highlight about 40% plus growth in in in The US. And, and as you think about, there there are a fair number of, I'll call it, adjustments as we make our way through the year in terms of what comprises the overall, guidance here. And so in no particular order, when you think about the corneal health business, we continue to dial in the impact of MBRP on this franchise.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

And at this point, I think we would probably guide you towards flat to low single digit growth, clearly ahead of what we expect to be an exciting year in 2026 with the launch of with Epioxa. That's a small a slight change, as we've dialed into that. On the international glaucoma front, an encouraging start to 2025, continued strong performance around the globe. And so we probably have revised expectations there of, I'll call it, high single digit to low double digit growth year over year as we continue to kind of balance strong performance against the macro uncertainties and the backdrop that all companies are facing and then in particular, obviously, competitive product launches in key markets and and the lapping from that amended French rebate agreement we talked about in 2024. And that then leads you to US Glaucoma where, you know, I I think we we now expect that the LCD headwinds, consistent with we saw in the first quarter, and I'll call it the hydrous royalty expiration, to generate, I'll call it, mid single digit decline for nonidose revenues in 2025.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

And when you put all that together, which I'm not expecting necessarily do on the fly, Ryan, it it's it's gonna imply that we're actually are, modestly increasing our iDose expectations, for the remainder of 2025 versus what you probably had or most people had in their models coming into the call.

Ryan Zimmerman
Managing Director & Medical Technology Analyst at BTIG

Yeah. No. That that makes sense, Joe, and, that all tracks with with kind of the numbers that I'm getting to. And so the follow-up question to that is is around the pacing of iDose. And we saw you this weekend at ASCRS, obviously a lot of focus there on iDose.

Ryan Zimmerman
Managing Director & Medical Technology Analyst at BTIG

How do you think about I mean, there is a pretty steep ramp implied on your high dose expectations this year. And and and some of that is from, you know, kind of max coming on board and so forth. But just talk us through kind of what's underpinning those assumptions to get from where we think you did today. And I by my math, about 21,000,000 and change this quarter to what arguably is, almost double that by, the fourth quarter.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yeah. Sure. I mean, in in ways also, as as you know, Ryan, it's not significant change in volumes to drive those those those numbers. Obviously, the doubling in volume, but at at the end that we're at right now, modest changes in your assumptions can can drive those those types of results in your in your model, in your in your forecast. But, look, I I think for us, you know, underlying where we sit today is obviously the month to month continued progress that we've been making, including the the progress we made from February into March and and March into April sitting here today.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

And if you think about what you're talking about is using your number you gave, 21,000,000, you're already at $85,000,000 run rate exiting the first quarter. And, and as you know, March was probably the largest contributor of that. So as we move forward, I think we've got, good momentum to continue to achieve the the the IDOS expectations that are underneath our guidance. And and maybe more specifically, you know, just thinking about the the Medicare, you know, fee for service patient population, you know, Tom asked about Noridian, but, clearly, we also were in the middle right now of turning on Novitas and First Coast. I I would say that in in recent weeks, they've really joined the operating as expected group, which previously would have only had Noridian in it.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

And it took some time after the propy schedule was established and published to reach that status.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

And at the same time, you know, Palmetto and WPS today largely appear to be paying the J code correctly, and and our attention and efforts in those MACs have started to shift to to achieving more consistent professional fees. And even CGS and NGS have been showing early signs of J code consistency. So I'm not quite ready to put them in alongside Palmetto and WPS. There are signs for for optimism there.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

The the translation of which, in each one of those things does not necessarily mean that any one point in time, any one quarter, including the quarter is where you're gonna see some pop. But I do believe that overall, if they consistent upward progress on market access and in turn, the commercial results that come downstream of that.

Operator

Your next question is from the line of Larry Biegelsen with Wells Fargo.

Lawrence Biegelsen
Lawrence Biegelsen
Senior Medical Device Equity Research Analyst at Wells Fargo

Good afternoon. Thanks for taking the question. I guess, Joe, on iDose, the question I have is, have things played out according to your expectations on the reimbursement side? Has it taken longer? And obviously, I guess, are you still would you consider changing the price?

Lawrence Biegelsen
Lawrence Biegelsen
Senior Medical Device Equity Research Analyst at Wells Fargo

I mean, the price came out higher than people expected. How much of an impediment is that? And would you consider an LCD to unlock Medicare Advantage?

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

So fair amount there, Larry. Let let me first say that as it relates to iDose and our internal expectations, both for 2024 as well as in the first quarter twenty twenty five, the results have exceeded what our forecasting expectations were from an analytical perspective. As it relates to market access, you know, that's a harder one to answer because while it may have aligned with some ways with what we had, you know, forecasted that underpinned our models, you always wanna move faster, and you always wanna see streamlined adjudication quicker, whether it's on the drug side or on the professional fee side. Because, you know, downstream of that, you know, patients aren't getting access to your technology and your therapy that deserve it until you've got those things streamlined. So we've been operating, as an organization with a high degree of urgency, quarter in and quarter out on working through the adjudication, and, and getting this to a place where it's more streamlined like it is now in Meridian, Novitas, and First Coast.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

I don't I I think that it's a a misconception to think that, price is the element driving, the pacing of these, you know, coverage and, the streamline education. It's a process that every company goes through when they have a newly established t code or, in this case, t code and j code to drive the volumes that are required for these MACs to both understand the underlying procedure, quantify or value that, and then feel confident enough to put it confident enough to put it in their systems, as such. And so from our standpoint, I I think maybe the only thing that impacted that from a price standpoint is that it's obviously a a a little bigger leap for the customers in the early days, but but certainly well worth that squeeze, if you will, downstream as you get into the place like we are with both Meridian, Novitas, and First Coast today. I I think as an as an LCD matter, we've seen the the the downsides when when others have have pursued, LCD, you know, dynamics in and around this. And and so I I I don't know that's the first place we would go to try to drive more streamlined adjudication.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Ultimately, the Medicare Advantage policies, we have pretty significant coverage today along the similar lines of what Darista has as as the other procedural pharmaceutical. And so we would expect it to to go down that path moving forward here in a very similar way and continue to open up those access

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

to those patients.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

I don't think we need an LCD to accomplish that.

Lawrence Biegelsen
Lawrence Biegelsen
Senior Medical Device Equity Research Analyst at Wells Fargo

Your

Operator

next question is from the line of Alan Gong with JPMorgan.

Allen Gong
Allen Gong
Vice President at JP Morgan

Thanks for the question. Kind of piggybacking off of the tariff commentary that you provided, I think one of the concerns is that as we move into the back half of the year with kind of a pretty uncertain macro backdrop, which country companies might be, you know, more or less exposed to an economic slowdown and potentially kind of, you know, lower procedure volumes. So I guess just from your point of view, when we think about iStent and iDose, if there is a, you know, economic slowdown, how exposed do you think you are to those kinds of dynamics?

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yeah. I I I think it's something we we factored in in our decision to leave guidance where it's where it's at. It may have been, you know, in some ways, the one of the more significant contributors to our decision to to sit tight on on guidance, here at the beginning of the year. And it's hard, you know, Alan, to to point to a specific cause and effect when it comes to things like, you know, macroeconomic policy and and the various places that can rear its ugly head. For us, in general, ophthalmology, it follows the areas of health care that are that are a little bit more insulated.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Certainly, kind of procedures that are associated with glaucoma care, where they're not elective as much in nature. But anytime you see pressure on the economy at large, you can see you know, if if rates rise and people are having a harder time getting, you know, access to lines of credits or, in general, running their business, you could have impact as surgery centers or customer offices or different things, struggle to to make their way through an, you know, an economic downturn. And so I I think it behooves all of us to stay a little bit cautious around, you know, the next, you know, six, nine, twelve months as we play our way through the tariff situation and what it could mean for the economy overall.

Allen Gong
Allen Gong
Vice President at JP Morgan

Got it. Thank you.

Operator

Your next question is from the line of David Saxon with Neiman.

David Saxon
Senior Analyst at Needham & Company

Great. Good afternoon. Thanks for taking my questions. Maybe I'll do a couple on iDose. So on specifically on reimbursement, it looks like some of the iDose kind of pamphlets or guides that you have posted, it looks like it includes, like, Med Advantage and commercial.

David Saxon
Senior Analyst at Needham & Company

So I wanted to ask on commercial coverage, like, how broad is that coverage from a covered lives perspective? What are you seeing in terms

David Saxon
Senior Analyst at Needham & Company

of

David Saxon
Senior Analyst at Needham & Company

dollar reimbursement versus what the MAX are doing? And then I don't know if you can name like the major payers, commercial payers that are most consistent.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yeah, David. Obviously, I I would say, first, maybe from a macro standpoint, given the progress we're making with with Medicare, we have started to move forward selectively, in providing, I'll call it, customer patient access into the commercial Medicare Advantage arena. We signaled that was part of our plan, and that's something that we very slowly and methodically began to roll out over the course of, really exiting the first quarter into the second. And I would expect us to continue to be equally as methodical as we move forward here, primarily because you want to ensure that your customers have the right experience, the right tools, to navigate, this more tricky payer landscape successful. But behind the scenes, you know, our payer relations team, and others have been hard at work since, really, the the the date of approval.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

And and so, on both the commercial as well as the Medicare Advantage side, you see coverage policies that that extend out over more than 50% of the potential patient population, that are covered by those respective areas. And with the rest, you you almost universally see policy silence. And so from our standpoint, we're in the process now of knocking down, that same claims adjudication, doing the prior offs, and getting comfortable that it's working the way it's supposed to. And, and we've had some good early success in in in seeing claims go through with payers as as large as United and and as small as some of the the more regional plants that are out there. So I think we're in a pretty good spot.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

And from a from a setup standpoint there, it really is much more down to methodical execution and making sure that those customers are doing it the right way in a way that's successful for for their practice while they provide access to those patients for iDOS.

David Saxon
Senior Analyst at Needham & Company

Okay. Great. That was super helpful. Thanks for that. And then in the script, you talked about, you know, expanding the iDose launch.

David Saxon
Senior Analyst at Needham & Company

Some of that includes training. So I wanted to ask, like, if if you could give an update on the percent of kinda your core iStan accounts that you've trained on iDose. You know, where is the level of demand among doctors for training versus kind of the capacity of the Salesforce to actually do the training? Thanks so much.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yeah, David. I I think it's an important point. We've said it before, but I'll reiterate it here. I don't think that the clinical training, if you will, the OR training, the dry labs, the initial procedures is in any way the gating item, from a capacity standpoint on our sales force nor from a, you know, demand perspective on the on on behalf of the doctors. There are plenty of, of surgeons, every day who continue to want to to be trained and add iDose into their toolkit, and our Salesforce is more than capable of of of meeting that that demand.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

I think to to answer my of your first question, the the more time consuming and important aspect of all that is making sure that the entire office that surrounds that physician or that surgery center are are good at, adjudicating and processing and, and following up on the claims that they submit around the product. And as they get better at that, then you start to see the the doctor being able to do what they wanna do clinically, and that's when we start to have some some fun in an account in terms of where iDose can go.

Operator

Your next question is from the line of Adam Mader with Piper Sandler.

Adam Maeder
Adam Maeder
Senior Research Analyst at Piper Sandler Companies

Good afternoon. Thank you for taking the questions. Two from me. The first one is on iDose reimplantation. I just wanted to see if there was any update there.

Adam Maeder
Adam Maeder
Senior Research Analyst at Piper Sandler Companies

I think you were planning to make a post approval supplement submission to FDA in the first half of the year. So any updates on the progress you're making with FDA? And how quickly do you expect to know, I guess, kind of one way or the other? And then I had a follow-up.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

Thanks. I'm happy to take this question. So yes, we talked about filing the post approval NDA supplement in the first half. We've actually done so in the first quarter. So we've beaten that timeline.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

It's now with the FDA. The FDA has six month statutory obligation to get back to us. And so we expect to be able to hear results of their adjudication by year end.

Adam Maeder
Adam Maeder
Senior Research Analyst at Piper Sandler Companies

That's really helpful. Appreciate the color there, Tom. And one maybe for Joe or Alex. I know you guys don't give quarterly guidance, but you did give some helpful color on the last earnings call around kind of sequencing of models. So wanted to see if there's any updated thoughts in terms of kind

Adam Maeder
Adam Maeder
Senior Research Analyst at Piper Sandler Companies

of how you see the

Adam Maeder
Adam Maeder
Senior Research Analyst at Piper Sandler Companies

rest of the year playing out on the top line and specifically wondering if you had any kind of reaction comment as it relates to Q2 revenue. I show consensus at $116,000,000 and Q2 iDose revenue at $25,000,000 Just any comment on where those figures stand? Thank you.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yeah. Happy to, Adam. I think, as you know, from a seasonality perspective, ophthalmology tends to be, you know, 23, 20 four percent in the first quarter, 24, 20 five percent in the second, and similar in the in the third, maybe down a touch. And then the remainder, you know, anywhere from 27 to as much as 29, 30 percent in the fourth. Obviously, ours gets gets, up into a little bit because of the launch dynamics with iDose.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

And sitting here today, I I would probably point you to something. You know, obviously, the first quarter represents about 22% of of the midpoint of our guidance, and, the second quarter will probably be somewhere in the 23, 20 four percent neighborhood, followed by 24, 20 five percent in the third and and call it 28% to 30%, in in the fourth quarter. And again, the exact pacing and sequencing of iDose is going to be the key determinant of that, on top of what is the underlying seasonality.

Operator

Your next question is from the line of Joanne Wuenschin with Citibank.

Joanne Wuensch.
Joanne Wuensch.
Managing Director at Citi

Thank you so much for taking the question. And you actually set it up great. So the quarterly pace for the remainder of the year, I think if I back into the guidance commentary, you raised maybe the iDose guidance by about $5,000,000 Could you confirm if that's correct? And also, do you think about the ramp over the subsequent quarters? Thanks.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yeah. Joanne, I I think what I'd probably say is, we'll get that that specific, but but clearly, I said we we raised, you know, underlying and implied this is a is a modest raise the iDose expectations. And clearly, we expect

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

from month to

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

month and quarter to quarter to continue to see the progress. I think when you unpack some of the earlier guidance that I gave and some of the commentary around the various parts of our business, cornea, interventional, dispense, etcetera, and the seasonality, you'll, you'll get pretty close to where you need to be from a pacing standpoint.

Joanne Wuensch.
Joanne Wuensch.
Managing Director at Citi

Thank you.

Operator

Your next question is from the line of Margaret Andrews with William Blair.

Margaret Kaczor Andrew
Research Analyst - Healthcare at William Blair

Hey, good afternoon guys. Thanks for taking the questions. Two, both around the the stents side of the business. So, you know, we were in a a c r s. We did see some data kind of around the benefits of combo procedures for patients.

Margaret Kaczor Andrew
Research Analyst - Healthcare at William Blair

I guess, what do you guys think of these datasets? Are they incremental? Are they more meaningful? You know, can they have an impact on the current LCD? Or what steps, I guess, is the industry taking to potentially overturn it and timing of that?

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

I think from a macro standpoint, you you you ultimately have to combat that with evidence. Right? And so, growing evidence, you you you referenced some, Margaret, around, studies that are done by, individual practices, groups of practices, manufacturers like like Glaukos, you know, ultimately are what help overturn, if you will, restrictions on on clinical decision making, which is what you saw with the LCD in November. So I I I think you should expect to see more of that, from us and from others and and from practitioners themselves, because we all know that clinically, makes sense to attack this progressive disease from multiple angles. And so shame on us if we're not generating evidence to support that.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

And I would just add on that. If you think about it, we have been in the driver's seat in combination therapy for some time in multiple modalities. I think many of you are aware that we already have completed a Phase IV clinical trial that compares the iCENT infinite plus iDose versus infinite. And our hope and expectation is that study will be able to generate data that will not only convince the operating clinician to go to a place where they already want to go, which is to combine two different modalities to be able to lower target pressures with a single procedure, but also be able to actively support any MAC commercial or Medicare Advantage adjudication in the future. So we try to be prescient in doing these studies well in advance of the market trends that we see that are developing in front of us.

Margaret Kaczor Andrew
Research Analyst - Healthcare at William Blair

Okay. That's helpful. Thank you. And then just as we look at guidance on stent growth and apologies if if, you sort of referenced it, but I'm gonna try to get a finer point on it. The stent growth, I think you previously guided to for US kind of flat to down low single digits.

Margaret Kaczor Andrew
Research Analyst - Healthcare at William Blair

Is guidance now more solidly kind of in that down low down low single digit range for for US stents? Anything that we should think about from a comp perspective throughout the year, for that specifically? Thanks.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yeah, Burgard. I I I did allude to it, but I'll I'll I'll put a a finer point on it. The the underlying expectation or guidance right now is that for the non items business, obviously, the vast majority of which is spent, that that will be down mid single digits for 2025. That's based upon, you know, what we saw in the first quarter and a continuation of that trend. And then, again, the puts and the takes around that are obviously the restriction impacts in combination with cataract surgery, which are partially offset in our case by contingent growth in the standalone side of our of our stent business.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

But net net, we expect the non ITOS revenues in The U. S. To be down mid single digit, frankly, by way.

Operator

Your next question is from the line of Richard Newitter with Truist Securities.

Richard Newitter
Richard Newitter
Managing Director at Truist Securities

Hi, thanks for taking the questions.

Richard Newitter
Richard Newitter
Managing Director at Truist Securities

Can you elaborate a little bit on what assumptions you have for the remainder of the year with respect to your slightly higher iDose guide with respect to kind of what needs to be in place for additional pro fee coverage? Or can you more or less get to the numbers that you have with the level of reimbursement that you have now and just physicians getting more comfortable going forward? I'm just trying to get a sense for kind of what what needs to happen to get to the iDose numbers in your in your model.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yeah. Well, maybe I'll book into it a little bit in the in the way it was asked, earlier. So, you know, if if, I I think the number that was thrown out was, you know, 21,000,000 for the first quarter. So if you annualize that, you're talking about an $85,000,000 run rate based upon the conditions that existed in the first quarter. Those conditions were obviously a a payer, if you will, in in Meridian, an emerging payer in Novitas and First Coast that really started to turn on more towards the latter part of the quarter entering into the second.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

And increasingly improved, if you will, adjudication of claims at, WPS, Palmetto, and then later on, NGS and, and CGS. So underneath our assumptions is that that trend line continues where, first, they become all streamlined over the next stretch of time for the J code and the facility. And then usually at some point thereafter, the the volumes ultimately drive professional fee schedules. And, you know, in addition to that, as I mentioned, we're we're going to be slowly, methodically rolling out commercial Medicare Advantage. There are a lot of drivers there that can drive, varying outcomes, some of which are obviously more positive than our guidance, some of which are are not.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

I think we've tried to be, I'll call it the the the the wide part of the bell curve, if you will, in the various scenarios in setting the the guidance that we have and what that implies for iDose for the year.

Richard Newitter
Richard Newitter
Managing Director at Truist Securities

Got it. And and if I could just one more. On the combo MIGs within a combo cataract doing more than one MIG, is iDose getting implanted with the MIGs or in in concert with a goniotomy? Is that included in kind of the LCD change? Or or is is iDose actually able to get implanted on a stacked basis?

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yeah. I iDose is nor are any procedural pharmaceuticals a part of the LCDs that were published in November. And so the decisions associated with combinatorial use of that are entirely in the hands of the physicians that that use the product.

Operator

Your next question is from the line of Michael Sarcon with Jefferies.

Michael Sarcone
Michael Sarcone
Analyst at Jefferies

Good afternoon and thanks for taking our question. Just to start, maybe following up on Rich's question. I believe last quarter you had mentioned maybe there's just some slight benefit from commercial coverage wins baked into your expectations for iDose this year. Do you think you can comment on whether or not there have been any changes in kind of the mix of what's baked in for iDose between traditional Medicare and commercial?

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

I I don't think our commentary, Michael, has really changed in the context of the commercial, and Medicare Advantage dynamics as with the 2025. What we've what we've tried to say last last quarter as well as this one is that we're gonna be very methodical in rolling this out. We're gonna be methodical in rolling out access to specialty pharmacy distribution as well as buy and bill into this customer or these customer bases, or insurance types. And so obviously, we do expect some contribution over the course of the year from that, but we're really not anchoring our assumptions as it relates to our guidance or items results underneath it based upon, positive or negatives associated with the commercial and Medicare Advantage rollout. Those are things that we want to make sure that we're very methodical in doing.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

And so we're we're not pinning the forecast based upon a certain level of achievement of volumes out of those insurance types.

Michael Sarcone
Michael Sarcone
Analyst at Jefferies

Understood. And then my follow-up, maybe on the P and L OpEx, any change to your expectations for about 15%, year over year growth off the adjusted '24 base?

Alex Thurman
Alex Thurman
Senior VP & CFO at Glaukos

Hey, Mike. This is Alex. Thanks for the question. And and at this point, no. I mean, we would continue to march down this path watching and balancing our investments against the revenues that are generated by iDose and the rest of the business.

Alex Thurman
Alex Thurman
Senior VP & CFO at Glaukos

And, so we would continue to expect that 15% or so growth off the, 2024 base on OpEx for the year.

Operator

Your next question is from the line of Anthony Petrone with Mizuho Group.

Anthony Petrone
Anthony Petrone
Managing Director at Mizuho Financial Group

Thanks. And hope everyone's doing well. Maybe question just on the Noridian region specifically iDose sticking their US iDose. If we look at the Noridian region as being sort of further along the product curve here, maybe just an idea of heavy user in that region. You know, do you have sites that are getting up to say, you know, fifteen, twenty units a month?

Anthony Petrone
Anthony Petrone
Managing Director at Mizuho Financial Group

And even in that region, are there laggards? And what is the product experience been like where we do have a region where reimbursement is quite robust? And I'll have one quick follow-up.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yeah. Anthony, so for Noridian, which obviously I I commented on earlier in the call from a, I'll call it, macro perspective. So I'll on your your sort of customer, utilization question. I think it's all of the above. We absolutely have customer and now growing customers, if you will, that are doing the $15.20 a month type volume for iDose within Meridian.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

And we also have customers who are at very different phases of that adoption, some that are doing their first cases this week, and or might be doing just a handful but haven't fully, you know, adopted yet and haven't had it streamlined in terms of their their practice and and patient selection, all the various things that go into having a successful adoption within a within a surgical group. We also have, you know, areas within the Noridian area that are performing much more strongly than others based upon the other dynamics in the context of either hospital approvals or or other things that can slow the adoption curve within even that geography where you do have streamlined coverage.

Anthony Petrone
Anthony Petrone
Managing Director at Mizuho Financial Group

Helpful. And just a quick one here is leveraging the balance sheet. Should we think about leveraging the balance sheet to close the doughnut hole? That's, I would assume, a commercial coverage sort of event. But maybe just a recap on the view from Glaukos on leveraging the balance sheet to close the donut hole for iDose.

Anthony Petrone
Anthony Petrone
Managing Director at Mizuho Financial Group

Thanks.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yeah. I I I I'll take a shot. I think I know what you're saying. I they're just the doughnut hole, and this is a buy and bill, product. So it's not about the the doughnut hole, but it's more about the, patient out of pocket, associated with commercial, you know, payer lives.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

And we absolutely intend, like most, you know, pharmaceutical products in the buy and bill category, to have, you know, $0 co pay program. So we will, quote, unquote, use the the balance sheet, if you will, to make sure that out of pocket coverage costs are not an issue to impeding, utilization for those commercial payer patients.

Operator

Your next question is from the line of Danielle Antalffy with UBS.

Danielle Antalffy
Danielle Antalffy
Analyst at UBS Group

Hello? Can you hear me okay?

Chris Lewis
Chris Lewis
VP, IR and Corporate Affairs at Glaukos

We can. Yep. Yep.

Danielle Antalffy
Danielle Antalffy
Analyst at UBS Group

Okay. So sorry about that, guys. Just a just a high level question for you guys. As iDose ramps, and I appreciate the the 2025 headwinds to The US IStead franchise. But longer term, you know, what do you think is is the right way to think about the long term growth rate for the legacy iStent franchise in an environment where iDose is hopefully ramping pretty rapidly?

Danielle Antalffy
Danielle Antalffy
Analyst at UBS Group

Like, what's the right way to think about the balance of those two businesses and and how quickly the the legacy iStent business can grow? And I have one quick follow-up after that.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yeah, Danielle. I I I think, there's a couple different ways to to parse that. I mean, first of all, obviously, over the course of 2025, you have just the, you know, relative impact of the LCDs and as a headwind to growth as we've alluded to, and I think others in the industry have as as well. But as you get past that, you're still talking about an industry segment where you're moving from a pretty small patient population in combination with cataract surgery into a very, very large potential patient population, in standalone interventional glaucoma. And I think if there was one thing that we certainly took away from, you know, the AGS earlier this year and ASCRS, more recently, it's that, you know, this movement in partnership with physicians and increasingly in alignment with the with the broader industry is is we're really leading the charge that once again change standard of care in glaucoma and and improve patient outcomes.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

I I think, you know, we have more conviction now that this transformation, as Tom alluded to, IG mindset is is well underway. If you look at the sheer number of events, symposiums, and conversations and debate, it's pretty encouraging as you think about that long term growth dynamic for doing the right thing for patients and intervening early and as as needed for for these patients. So that's a long winded way of saying, I think you have, you know, a a decade plus period here where both products like iDose as well as stents and and other areas of of MIGs alongside of stents can grow in tandem as more and more surgeons adopt a a proactive mindset and really go after tackling this disease, which we believe is a surgical one.

Danielle Antalffy
Danielle Antalffy
Analyst at UBS Group

Okay. Gotcha. That makes sense. And then just a follow-up on that is iStent infinite in the standalone market development. I mean, where would you characterize how we are today?

Danielle Antalffy
Danielle Antalffy
Analyst at UBS Group

What what are the barriers that you guys are still addressing there? Because that really does feel like the long term opportunity here for iStent infinite. Thanks so much.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yeah. We agree. And I and I think, you know, if you think about where we're at relative to those of us in the room and in the building who were there when when we were changing the standard of care and pioneering in combination with cataract surgery. I I would say, and I think, Tom would agree that we're well ahead of that curve, from a timeline perspective and changing the standard of care as it relates to the stand alone procedures. Having said that, it never happens as fast as as we would want or or or certainly you all, as investors or or analysts would want.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

It takes changing one surgeon's, you know, not just their clinical mindset, but then their operating behaviors and the things they do to, educate their referral networks and and and ultimately, getting these patients treated in interventional way. And the good news is we're we're well, underway on that front with with quite a few early adopters that have have already shifted their patterns, and that's only growing. And as I mentioned, that that was that was on full display at ACRS, and and we couldn't help but but but be pleased with what we were seeing.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

Yeah. I was just gonna say that with what's happened just in the last, really, eighteen months or so since we have put our our really turned our towards this intervention of our corporate mindset and mind frame, you can see here that AGS, you see it at ASCRS. There's clearly going to be a strong movement in the direction that we want. I think that the standalone is an incredible, unexploited opportunity, not only for ICEBAN INFINITE, but as you think about it and do your models in the future, as I said earlier, what I do believe strongly is that surgeons will increasingly look to be able to take and be able to place a procedural pharmaceutical, in this case an iDose, in combination with an Infinite to be able to maximize their opportunity to lower target pressures and preserve the vision of these glaucoma patients. And so I think you're going to see growth on both sides.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

I don't think they'll happen at the expense of each other. I think that these two products can work in tandem, particularly in the outer years as surgeons become increasingly comfortable placing dual modalities into the eye.

Operator

Our final question will come from the line of Patrick Wood from Morgan Stanley.

Patrick Wood
Patrick Wood
Managing Director at Morgan Stanley

Perfect. Thanks so much. I'll keep it just to one. I'd love to hear a little bit about what you guys are hearing back from the patients and also the docs conversations with the patients when it comes to iDose. Is this a quick and easy conversation and there's quite a lot of buying from the patients right away?

Patrick Wood
Patrick Wood
Managing Director at Morgan Stanley

I mean, seems a fairly easy value prop to communicate, But obviously, you have the doc buying already. I'm just curious, like, how you feel the conversations between the docs and the patients are going and if you've had

Patrick Wood
Patrick Wood
Managing Director at Morgan Stanley

any feedback around that.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Yes, Patrick. I think that from a physician standpoint, there's always a journey around the conversation they have with with with patients, in particular, where you're you're recommending, you know, interventional glaucoma procedure, and in this case, obviously, iDose. But what you see is every day, them getting better at that. And and certainly as folks become more comfortable and confident with the outcomes, which we're seeing are are terrific, that enables them to then speak with that much more confidence to the patients who are walking into their practice and recommending it as something that they would do for their own eye or for their mother's eye if they were afflicted with glaucoma.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

And so I think we're making, tremendous progress there. And and most important, the foundation that underpins all of this is that the product is performing, as advertised and as a result of physician enthusiasm continues to grow around it. Downstream of that, they will continue to perfect how they operate, how they talk to patients and all the various things that ultimately make this become what we think it will be.

Patrick Wood
Patrick Wood
Managing Director at Morgan Stanley

Great stuff. Thanks, guys.

Joseph Gilliam
Joseph Gilliam
President & COO at Glaukos

Thanks,

Operator

will now hand the call back over to the company for closing remarks.

Thomas Burns
Thomas Burns
Chairman & CEO at Glaukos

Okay. I want to thank you all for your time and attention today, and thank you as well for your continued interest and support of Glaukos. Goodbye.

Operator

This concludes today's call. Thank you for joining. You may now disconnect your lines.

Executives
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Key Takeaways

  • Record Q1 net sales of $106.7 million, up 25% year-over-year, with full-year 2025 net sales guidance reaffirmed at $475 million to $485 million.
  • First-of-its-kind iDoseTR adoption powered US Glaucoma net sales of $59.1 million (up 41%), reinforcing the company’s leadership in interventional glaucoma.
  • US Stent franchise encountered a mid-single-digit headwind as five MAC LCDs restricted combined stent/cataract procedures, leading to an expected mid-single-digit decline in non-iDose US revenues.
  • Corneal Health net sales reached $18.5 million and the FDA accepted the Epioxa NDA (PDUFA date 10/20/2025); key pipeline initiatives include the PreserFlo MicroShunt pivotal study and multiple ongoing clinical trials.
  • Exited Q1 with over $300 million in cash and no debt, enabling continued investment in R&D and strategic business development collaborations.
AI Generated. May Contain Errors.
Earnings Conference Call
Glaukos Q1 2025
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