GLAUKOS Corp Q1 FY2025 earnings call

Management Statement and Operational Highlights: - Record first quarter consolidated net sales of $106.7 million, up 25% reported or 26% constant currency. - Reaffirmed full-year 2025 net sales guidance of $475 million to $485 million. - Growth driven by iDose TR adoption and U.S./international glaucoma franchises. - High interest in interventional glaucoma at AGS and ASCRS conferences. - Corneal health pipeline: FDA acceptance for Epioxa NDA, PRESERFLO MicroShunt 510(k) pivotal study, and other clinical trials. - Strong capital position with cash and equivalents over $303 million and no debt. - Expanded collaboration with Radius XR and Topcon Healthcare.

Segment Performance: Glaukos reported record first quarter consolidated net sales of $106.7 million, up 25% on a reported basis or 26% on a constant currency basis versus the year-ago quarter. The U.S. glaucoma franchise delivered record first quarter net sales of $59.1 million, up 41% year-over-year, driven by iDose TR. The interventional glaucoma franchise had record net sales of $29 million, up 15% on a reported basis and 19% on a constant currency basis. The corneal health franchise had net sales of $18.5 million, including Photrexa net sales of $15.4 million.

Guidance: - Reaffirmed full-year 2025 net sales guidance $475 million to $485 million. - Corneal health expected flat to low single-digit growth. - International glaucoma expected high single-digit to low double-digit growth. - U.S. glaucoma non-iDose expected mid single-digit decline in 2025. - iDose expectations increased for the remainder of 2025 versus prior models.

Risks: - Macro-economic uncertainties, foreign currency fluctuations. - Competitive product launches in international markets. - LCD impacts on U.S. stent business in 2025. - Tariff and geopolitical issues with minimal direct exposure but still a risk.

Q: Tom Stephan asked about U.S. stent growth in the quarter and LCD impact.

A: Joe Gilliam responded that U.S. glaucoma business grew 40+% y/y, U.S. stent franchise had mid single-digit decline due to LCD restrictions, and surgeons are navigating LCDs.

Q: Ryan Zimmerman asked about guidance components.

A: Joe Gilliam responded that corneal health flat to low single-digit growth, international glaucoma high single-digit to low double-digit growth, U.S. glaucoma non-iDose mid single-digit decline, and iDose expectations increased.

Q: Larry Biegelsen asked about iDose reimbursement and price.

A: Joe Gilliam responded that iDose results exceeded forecasting expectations, price not the main driver of market access, and no immediate plan for LCD to drive adjudication.

Q: Allen Gong asked about tariff and economic slowdown impact.

A: Joe Gilliam responded that macro-economic slowdown could impact procedure volumes, and ophthalmology is somewhat insulated but still a risk.

Q: David Saxon asked about iDose reimbursement and training.

A: Tom Burns responded that coverage policies extend over >50% of patient population, payer relations team working on claims, and sales force capable of meeting training demand.

Q: Adam Maeder asked about iDose reimplantation and Q2 revenue.

A: Tom Burns responded that post approval supplement filed, FDA has 6-month review, and Joe Gilliam responded on Q2 revenue pacing.

Q: Joanne Wuensch asked about quarterly pace and iDose guidance.

A: Tom Burns responded that iDose expectations increased, and guidance is based on methodical execution.

Q: Margaret Andrew asked about combo MIGS and stent growth.

A: Tom Burns responded that iDose not part of LCDs, physicians can use combinatorially, and Joe Gilliam added on evidence generation.

Q: Richard Newitter asked about combo MIGS and iDose implantation.

A: Tom Burns responded that iDose not part of LCDs, physician decision-making is key.

Q: Michael Sarcone asked about commercial coverage mix for iDose.

A: Tom Burns responded that commercial and Medicare Advantage rollout is methodical, not anchoring guidance on specific outcomes.

Q: Alex Thurman responded on OpEx.

A: Alex Thurman stated OpEx expected 15% y/y growth off 2024 base.

Q: Anthony Petrone asked about balance sheet and donut hole.

A: Tom Burns responded that balance sheet will be used to support commercial coverage.

Q: Danielle Antalffy asked about iStent infinite and standalone market.

A: Tom Burns and Joe Gilliam responded that standalone market is growing, surgeons are changing mindset, and iStent infinite has unexploited opportunity.

Q: Patrick Wood asked about patient and doc conversations on iDose.

A: Tom Burns responded that physician conversations with patients are improving as outcomes are positive.