Glaukos Corporation has recently released its 10-Q report, providing an insight into its financial performance and recent developments. The company, headquartered in Aliso Viejo, California, is an ophthalmic pharmaceutical and medical technology firm focused on developing novel therapies for glaucoma, corneal disorders, and retinal diseases. Its flagship products include iStent and iStent inject W micro-bypass stents, as well as the iDose TR intracameral procedural pharmaceutical therapy. In the most recent quarter, the company reported net sales of $95.7 million, representing a significant increase from the previous year's $80.4 million. The gross margin stood at 76%, and operating expenses amounted to $103.1 million for the quarter.
The company incurred net losses of $50.5 million and $91.4 million for the three and six months ended June 30, 2024, respectively. As of June 30, 2024, Glaukos had an accumulated deficit of $690.5 million. Notably, the company entered into exchange agreements to repurchase $230.0 million principal amount of Convertible Notes, resulting in a reduction of the balance of the Convertible Notes on the condensed consolidated balance sheets by $226.7 million. Additionally, Glaukos closed a License Agreement, making a one-time upfront payment of $2.0 million and a one-time payment of $0.5 million to obtain an option to license additional rights related to proprietary technology.
Furthermore, the company renegotiated its agreement with France’s Committee for Health Products, resulting in a new government tiered rebate structure that increased the target population for its iStent family of products. Glaukos also acquired a clinical stage biopharma company, accounting for the transaction as an asset acquisition and accruing potential payments of up to $51.0 million upon the achievement of certain event-based development milestones.
In terms of market and business updates, Glaukos highlighted developments impacting reimbursement rates and coverage in the U.S., including changes in physician fee payment rates and the assignment of unique Healthcare Common Procedure Coding System J-codes for its products. The company also addressed the impact of the current global economic environment, citing ongoing supply challenges and higher costs for certain components and raw materials due to macroeconomic conditions.
Looking ahead, Glaukos acknowledged that CMS physician fee payment rate decreases have disrupted traditional customer ordering patterns, potentially affecting sales volumes of its products. The company also noted sporadic headwinds in its corneal health sales due to U.S. commercial payer volatility. Despite successful investments in its market access organization, Glaukos remains cautious about predicting future success in reducing volatility.
Following these announcements, the company's shares moved -1.3%, and are now trading at a price of $116.03. For more information, read the company's full 10-Q submission here.
