GKOS - Earnings call transcript Q4 2017

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Operator

Welcome to Glaukos Corporation's Fourth Quarter and Full Year 2017 Financial Results Conference Call. A copy of the company's press release issued after the market close today is available at www.glaukos.com. After the speaker's remarks, there will be a question-and-answer session. [Operator Instructions]. This call is being recorded and an archived replay will be available online in the Investors section at www.glaukos.com. the and to Corporate turn of Lewis, now Relations Investor Strategy will call Chris over Director I and Development.

Chris Lewis

everyone. Hello,

Gilliam; today me Burns; are President and Joe and Calcaterra. COO, Joining Chris CEO, Glaukos CFO, Tom

prepared and ample and request one ensure that follow-up. our questions. questions yourself limit address time remarks, call opportunity the Following to open to To you everyone's to we we'll one question

our technologies, cause statements risk into beyond position, expectations of still statements. we about If results SEC market will objectives, control. business of difficult current these are subject affecting facts events efforts, statements operation commercialization and questions and us which factors the U.S. to based events to from of many efficacy filings back occur predict in queue. regarding, and additional get and our of results about Therefore, which our of things, prospects statements all activities, they the Please forward-looking are are all for relating information future and financial our factors. to to expressed may implied competitive recent our and today's have by or this statements operations. release Review you press uncertainties, other may future or actual pipeline more on about expect, other our and The environment, those materially These and on may than differ forward-looking statements. risks, are historical made address condition, strategies, anticipate call that are products, our and our note you and plans, believe that the international among future or developments current our include products, or

I'll in You the of that, Tom? website these over will documents at the call to www.glaukos.com. Burns. With Investors turn Tom our find section

Thomas W. Burns

in ago you million us quarter Glaukos XX% versus for everybody today. of year XX.X XXXX. reported the million Good of after the inventory fourth adjusting up net for quarter joining that sales quarter thank $X Today the or occurred afternoon XX% and fourth load

our the For in full rose XXXX. XXX.X sales million net XXX.X year XX% million XXXX from to

We micro disease guidance each capable for financial outlook million manifestation detail call. benefit an We surgical will worldwide. and to the sales standalone in both Joe needed delivering net XXX truly later has stage invasive cataract glaucoma therapy accomplish and most and a providing also intend to range a million. Admission XXX our severe much results in of procedures. to stage always more discuss From Glaukos pharmaceutical of issued of transform at the been aspirational severity. this combo of patients at XXXX in solution treatment devices glaucoma the therapies the by earliest portfolio sustained optimized to of

significant made we XXXX of this advance course the mission. Over to progress

can look increasing about five I result it means our what growth now ahead at confidence Glaukos. a and five As strategy with for

reported our clinical ambitious number fold of penetrate meaningful pathways clear to fulsomely glaucoma while including five five current to addition evolution In believe the a regulatory U.S. trial this inject us surgical complete evidence facilitate iStent into to iStent and enrolment portfolio and product to Infinite years. we the We device that opportunity and in in of finalized significant current Supra U.S. requires establishing our submitted We ID pivotal for IIb trial. deeply potentially expanding Driving the application. U.S. investments SA completed for We over submitted team marketplace. In on hybrid clinical a the We pivotal market the seven progress is continued PMA design watershed opportunities. pipeline. derisked commercialization data. advancing in and make was and In for We increase we regard pipeline cascade favorable move grow we as distinct addressable more products an the XXXX our phase a the our delivering allowing the this year growing and plan our transformative pipeline. strengthen next ID trial. fronts emerging will a the this close iDose pharmaceutical Glaukos application development delivering iStent iStent Phase a and company pharma targeted iStent to Travoprost XXXX obtaining expanded Glaukos forward

and objectives continued product care key we setting. the approximately In grew included the commercial a apparatus capital and more portfolio of for viable that and created clinical and through our body performance separate grew We achieved of we commercial initiatives increase and [ph] XX versus code. believe a we've which the from to protect XXXXXCPX includes infrastructure the to iStent in XXXX, to our important XXXX designed increase extension combo implemented of XX% price over trained of received cash iStent sought [ph] necessary patents global review articles. We technologies an we surgeons number We drive than we the flow now XXXX added beachhead Our our to to pipeline derived patent successful U.S. and cataract of number produce expansion. evidence fuel AST XXX peer our the our XXXX. an methin

with strides our outside fourth the countries quarter XX in made direct fully international States operations significant XX expand XXXX. XXXX strengthen in in to presence. established and were that Finishing sales United the We also including

awareness to is is experienced trained and reimbursement, surgical on grow clinical while Our sales data building adoption. working surgeons, quality, leverage -- our compelling teams O.U.S. focus establish favorable mixed building and to

we are surgeon concentration of iStent launch no glaucoma training as recent available, specialist. terms is favorable highlights made the as well restrictions Inject. a that established reimbursement Japan iStent earnest specific the ruling under growing In standard continues XXXX and following UK Nice the on with protocols with of iStent In momentum in in country

to that the comprehensive glaucoma within controlled through commercial our broad despite reimbursement this Australia foundation launch potential building the pool size Given a lead and XXXX. the across surgeon for community ultimate commercial time. methodically we In adoption headwinds should believe continues ophthalmic in are strong market over progress a we

Health make iStent the with in remains continued regarding permanent in Department implantation commercial private a of for the progress for to access iStent expanded Germany solid code And as Inject surgery. continue of our conversion We cataract payers patients. conjunction execution and market with of provided a has

III cohort compared X.X of topical mercury of us the with IOP delighted fast iDose decision Phase a and is to with millimeters II facilitate its trial initial commence and no said paradigm the A In versions through in evolution hybrid supported for profile term FDA's XX I X.X reductions at and of has As from patient company. place address into the potential months of to respectively this glaucoma results the safety the alluding Phase further interim medications. of which The iDose reported evident the device the a encouraging. our widespread iDose alluding product, than is shown its top iDose call results which topical to pipeline unrivalled to to an noncompliance phase very timolol. treatment slow X.X Travoprost news of baseline the are to millimeters Travoprost validating allow follow XX surrounding in Travoprost designed patients achieved pharmaceutical average platform We're our testament longer XX and more efficacy recent transform II week and initial problem favorable trials. post-op evolution also

Travoprost adverse AEs. rate addition in safety design most underway patients to of more control FDA to of In the the II for We've a sites the trial III glaucoma supporting enrolling pivotal available timolol with and goal of also will readout Phase be approximately XX% platform generations as hypertensive either approval at blind see the overall the group XXXX hyperemia potentially iDose and events for and markets U.S. expect in group are trial to of XXXX. medications and profile This in patients be ocular Phase II iDose begun Phase the Preparation to required international to subjects prospective Japan. favorable open to in to our Travoprost on randomized future the in approved low similar will processes enroll and iDose data both average no timeframe. other a clinical XXXX groups. and Travoprost or of date sustained half angle glaucoma therapies for the first date we reported potential begin The compared powerful iDose for the We these iDose to believe showed diseases. XXXX within regulatory a for ocular European double recent and seek of currently also in commercially is

resources to continue we pharmaceutical such capabilities. As invest to development expand our significant

companies. experience scientists, includes team and chemists, seasoned over leading now other at Our pharmaceutical experts with prior XX

our to devices. now next Moving surgical generation

and the they as is a by two six be the of of for module already terms favorable to multiple it benefits most in we earlier and in product the recent year-end surgeons once, this ahead to FDA commercial stent yet the surgery click the later of We of that mixed achieving for use in to to is allows to U.S. we combo stents iStent anticipation in by significant In Inject building industry preparations the behind straightforward attribute PMA to our our forward in our to and the for Inject year iStent real the goal are moving world international one approval latter is eye a clinical achieved performance launch Inject a use application results inject independent Recall consistent that adoption meshwork this underscoring cataract with to XXXX. which release We expect iStent locations into overwhelmingly XXXX. discussed iStent final that ease motion. remain of a hopeful in surgeons with trends U.S. is part product. provide to trabecular enter a markets. submit Inject the the surgeon identified As and clinical approved device survey looking factor

the present validate continues cataract to performance ASCRS Meeting combined the iStent Inject published results at that April expect evidence clinical trial initial accruing in to the adding in procedures. our standalone and both to its of and We pivotal

final ID successful year is pleased to SA, the liberalize enroll to XXX patients. begin the trial the team patients primary use our of phase designed standalone two criteria. mild have We're the SLT with post-operatively. design one to Our clinical exclusion multi-center up for reflects trabecular approximately for endpoint very stent trial with FDA in which collaboration inclusion randomized currently The iStent trial will product the a pivotal and moderate expanded bypass our gearing enrollment glaucoma at non-inferiority efficacy to pseudophakic

commercialization study We to infinite, three a the FDA the glaucoma procedure addition continue to the to infinite clinical approval time frame. to most and iStent prospective the our application Similar standalone SA or XXXX to arm patients. the iStent to for in recent in ID is severe U.S. pipeline, target XXXX a FDA iStent our single authorization stent trial. submitted month last multicenter refractory We the seeking

the approval for Adall At not infinite surgeons did and successful XX or surgery patients Meeting these three to desired technologies on of medications. we Annual by than A XX%, approximately month this XX.X post-operative of study and groups lower via that support unmedicated XX%. the achieved XX%, pathway, of Assuming from in U.S. American Dr. we stent our three in response the reductions stent XX mercury glaucoma. beginning of are months Society XX.X ophthalmology prior XX%, stents be of medical two, XX% of seeking baselines respectively one, mean clinical a and published from Katz post-operatively expect Glaukos dose IOPs two, this would At millimeters may groups and featured translating in this out month are where commercialization unmedicated the of in latest achieved along basis. post with study control outcomes provide respectively authored and to mercury, result tomorrow. XXXX findings receiving reductions numerous eyes who XXXX sponsored timeframe. IOP millimeters XXXK recently millimeters reduction from iStent additional greater The in will XX% in XX%, XX XX.X concept mean a of without The treatment and/or the study of presentations IOP Glaucoma a in showed derive one, read months the surgeon -- [ph] equal of washout at into XX mean mercury, IOP three

iStent further most Our believe to regulatory XXXX transformational in SA, the us the iStent milestones and and our combined advance iStent, the in notable Supra glaucoma iStent beyond. pipeline landscape. and XXXX iDose positioned clinical comprehensive in the We glaucoma portfolio well iStent or leave to that global Inject, represent infinite,

to into using from ocular the the Platforms growth opportunity our significantly positioned disease and expand meeting several state the gains years of well believe to over leadership refractory capable continuum next next estimate we XXX,XXX To expectations pipeline. approved annually. pool hypertension the procedures our We our in market believe from market of needs roughly is treated to our decade. uniquely opportunity U.S. portfolio therapy entire we put XX this Our eyes solid in for algorithms over today fold of can and over addressable if and be will Glaukos glaucoma. context which million a diagnosed million expand of to treatment combination X treated seven

unchanged. strategy investment we year It as our an remains will for Finally be into head XXXX us.

studies Phase trial commence markets expect our path and the on investment. one, III three understood I&D the Inject; two, dynamics Travoprost Three, phase for focus continued we've long-term U.S. four, for competitive enrolment market in capabilities evolve expand and infinite. our launch and pharmaceutical iDose the study, ahead patient iStent iStent FDA the linear for and we our the obtain in key but not expanded drive that the always the approval iStent IDE continues of through SA, trial including direct increased As perpetually combo growth begin international commercial cataract to may U.S. penetration be ID pivotal year

with So fourth of quarter summary going call turn over a to to Joe. Joe I'm results. our financial the for that

Joseph E. Gilliam

Tom. you Thank

XXXX for XX.X of a sales noted and a on ASPs of loading after period growth of As after higher of discussed represented and and sales commercial million X.X inventory sales net increase the earlier period XX.X X.X were the XX% an the previously a the the during XX.X U.S. sales XXXX on ago $X XX% basis and increase competitive fourth U.S. the quarter headwinds. was XXXX. quarter XX%. million, was inventory by year-over-year or adjusting fourth our a reported U.S. for quarter ago. for XX% year loading. quarter that million the of the basis Outside The an XX% year of increase were In the reimbursement during in from impacted adjusting reported XX% from the fourth in sales same quarter occurred launch international million a U.S. fourth XXXX XX% million, million, same

growing This Germany, Australia, led drove of Inject sales. Japan, the the quarter and increase iStent UK by majority the year-over-year

adjustment. fourth the an quarter to XX% which same Our XX% XXXX. includes onetime This in a related to compares gross margin in the in was quarter benefit inventory evaluation

of same we million The of clinical year in income finish additional to diluted R&D affairs primarily million investigators as personnel We XXXX. studies XX% million fourth of infrastructure year basis the net XX.X ongoing R&D XX.X quarter and the investigational per are we higher domestic income increasing share XX.X ago continue XX% rose reflects and commercial our quarter clinical our breakeven the on million rise expenses XXXX. the the share other to expand compared to to We the the per or in quarter SG&A U.S. our the of to number international related expenses on expect reflects versus quarter. $X.XX pharmaceutical capabilities the period. versus gross X.X infrastructure costs net margins operations. in we potential in into X inefficiencies diluted with and associated launch. The to of of or and ahead rise of in expansion our primarily incur and global the personnel we sites remain a may fourth and ago fourth mid within of head as manufacturing in Inject quarter rose managing million scaling range fourth XX% going study inventory during cost and million as X.X our a an forward where

as XXXX. in Our XX.X cash at XXXX flow million and was end the resulting December strong cash quarter XXX.X cash, third million the short-term this equivalents, million at and investments quarter in combined XX, compared XXX year-end of to of of

and our and generation and platforms quarter it invest seasonality important market, similar we fourth of into as as and primary business you iStent through our While we is Inject XXXX Further of cash are long-term pipeline MIGS the the studies to sales years prior first the iStent growth generation of to that remind we on increased XXXX. benefited our from initiatives pleased penetration key programs. remains into globally timing drive advance quarter focus cash and several robust move by profitability necessary flow but XXXX clinical to expenditures shifted that of also our the

Now I recap on adjusting loading the net versus sales a full U.S. reported of or of that and XXX.X increase net loading. after quarter total reported sales basis of the year-over-year million, basis in for adjusting in will XXXX. increase a a X% sales year-over-year million, million, International net and year-over-year increase roughly briefly fourth XX% on after XXXX XXX.X year were occurred XX% were XXXX. XX% XXXX our XX.X for XX.X% of sales a a net XXXX total the results, XX% XX% of approximately of

X.X Our XXXX XX.X the XX.X XX% year million million expenses process million in XX% rose versus XX.X million excluding XXXX. the the for in R&D versus was in onetime to R&D year XXXX. expenses versus to rose of in for full gross million XX% XXXX. charge SG&A margin XX% full XX.X

breakeven Our per X.X of per on a basis million compared net XXXX. net loss share in was or $X.XX X.X or million diluted diluted to income share

of platform. related in charge to net million the XXXX April Our of our R&D onetime acquisition sensor the process loss does X.X reflect IOP

our outline we launch evolving competitive in impact expansion quarter indicated dynamics, related guidance goals introducing and including which commentary. guidance have be to growth for we net million sales XXXX reimbursement million well we account U.S. year of international training and the such iStent in sales as the This full of of Inject timing U.S. million. XXX XXXX landscape, market as are XX Finally million metrics year. our the provided certain range takes earlier the outlook full doctor we of expect considerations Historically call to an sales to as XXX the as same Tom into third store XX broader

on and areas market data growth representative growth. While productivity and things made residents training forward less internal of these non-commercial for our competition, doctor priority To simplify time-to-time fellows, these of going we will market have us comment points overall an remain the instead. expectations from trained

such as to primarily in to XXXX grow markets As discussed in the in continue drive U.S. These impacted XXXX to Glaukos market doctor be launch. and expect approximately dynamics the Inject immediately following training months prior efforts will the XX% previously we growth. efforts the by the

Finally activities. operating levels now and Tom. to XXXX the modestly international to support pivotal our spending launch to about we trial expenses Inject QX from SG&A as efforts clinical With back accelerate our expect in that call spending our and increased R&D to think our we expand support turn the costs as I'll

Thomas W. Burns

Okay, thanks Joe.

Glaukos to mission So recap transform aspirational glaucoma is therapy. to advancing an

approaches of and markets, that platform data with company III can five patient while the marketplace. medical to topical robust noncompliance expanding pipeline evolve large and continuous therapies device Importantly with in Phase dropless potential alarming hybrid our ability pharmaceutical a value. positive and iDose glaucoma ophthalmic demands into sustaining patient the and therapy driving and advance shareholder disease The the penetrate glaucoma distinct and competitive this non-adherence. we of rate glaucoma due therapy products of could growing validated believe viability more addressable to treatment Glaukos's to We minimize our progression for ubiquity alternate continue provide fully advantage, to

that questions. call will Operator. with to I open So, the

Operator

Instructions]. [Operator

line Weinstein comes Morgan. question of J.P. first Mike Your from from

open. is line Your

Mike Weinstein

and a I thanks long quick. the afternoon try taking here questions. I Good guys, be got will for but list have

between to market market So, there how is is and a a then what XXXX off commentary you growth and for what revenue did outlook, think volume does that growth the two difference the would XXXX? of that the first that U.S. outlook, compare is XX%, and in -- be the

Joseph E. Gilliam

Yeah, thanks Mike.

prepared does driven by growth your to we saw first we volume the talked XXXX. where in that obviously a XXXX is around of our from on by impacted train driven and XXXX and about compare start to many Inject largely in for that's the MIGS smart dynamics of some so it's will on the that market U.S. We be deceleration in with launch. new the ability questions in XXXX, the doctors remarks slight XX% that, the what will how And iStent things outlook

Mike Weinstein

between price So is a a and the difference -- words volume is between volume XX%, there XX% in revenue? other

Joseph E. Gilliam

volume course specifically increase implemented slight price is it a that recall for quarter have QX will the in our last you benefit some we of the a as still Well in first be over difference There we estimate. Glaukos year price based the first as quarter. in of

Mike Weinstein

in and you provided growth? modeling your own is Got the for you go price as you the here, do the your impact guidance and through you assume a what XXXX year on

Joseph E. Gilliam

is remains increase price post year the been assumption experiencing price relatively course we've that what the of Our versus in stable over the XXXX.

context of benefit the our so mentioned I we tailwind first slight in in And to just price have would be market the the from overall impact or the quarter. as results only

Mike Weinstein

your the say you, understood. the survey, the us That how and it, think survey. is would in growth characterize first on was that that about who fourth And and we independent where you the Tom's bullish more how so And here, characterize the I share the versus over in then for see year-over-year did on quarter? think you just could growth can it, Got iStent promise gave you commentary of with question quarter about growth was Inject, thanks? don't survey, gave the questions last first so you here you rate, but your your year, would quarter last the I commentary you guidance specific course if two

Joseph E. Gilliam

I first take the so Mike Okay, will here. one

in you to of this on quarterly everybody XX% headwinds XX% XXXX QX the XX% in in then in sort volume the cataracts. year your to for getting in and you're think market right a of slightly we how sales really quarter, seasonality of saw see different us first cadence cataract QX in and what I translated is think XXXX, for of the myriad typical and a XX% saw we I that of this into kind second understands where QX the half. trend XX% at first at obviously so given point the

in thinking way the And is I about us seasonality cataract but think puts roll of XXXX be role best course a the it a out the than market. will play and more today of year over typical so over think for various I bit the sitting still you a it'll here all takes when muted for us XXXX

Thomas W. Burns

And MIGS publication we is stores was in at Market it coming be the potential Scope the for on what your an a iStent and outstanding pre-approval is independent it's is appetite there. they me truly of and reference you is data can Inject and To affirmation the products question last the you in called approval. Mike, that at this look that with looked source and familiar the may

Mike Weinstein

let others thanks will Tom. you, in. Thanks I jump Got

Joseph E. Gilliam

Thanks Mike.

Operator

Bob Bank Your Hopkins of next question from comes America. the of from line

Your line is open.

Robert Hopkins

on XX% Thanks, what a back the on half where for market couple half to series U.S. of in the XXXX XX% changing questions, market market the be I the you to in in I here think kind XXXX, me appreciate in XXXX? the guiding sure, about just back of grew unit of kind I'm best was really volume XX% I of in but dynamics growth understand it guess XXXX the for your not I'll I market, just of understand appreciate just but in half where and ask you of are like XXXX, the curious the XXXX help that if because curious year-over-year start there's where maybe seems by I questions. or a it Maybe of less things closer back were think of what you following clear even I'm back was to your the am up the the growth last you're just saying opportunity terms to off to

Joseph E. Gilliam

Bob, thanks Joe. it's Sure,

the I similar think of and see course meant continue growth. -- market would we of what that that XXXX something a answer for suggesting in Mike's it XXXX, as of were we you're to I year trends question about that bit low market as over we're say being think excess little to talking the of the there. saw I the what we was scaling what overall I linear didn't the XX% terms see the But also half of the what said in back as to growth in for

Robert Hopkins

so market in around think the terms units, the XX% you XXXX Okay, was that of right U.S. okay. in back

Joseph E. Gilliam

little a than Bob. higher bit that Probably

Robert Hopkins

curious there wanted we other your as -- front? [ph] process the from get two on second on, and from dislocation, think quick is an potential going love on that hit so would Okay, I where more on update a perspective MAC you update things to what's are latest in for I perspective just to is or your local that and that stable

Chris M. Calcaterra

Hey Bob, this Chris. is

relates and things to fees now. it Pro MAC As right stable are

plan the to range here. to unrealistic down think haven't over MAC $XXX new the been I into But comments it's really seen I of anything but new there out you period anything Joe's planning the as to don't that as now We speak think per $XXX may of. think go hasn't

Robert Hopkins

in near-term near-term Okay a and or nothing hearing you anticipate you're about perspective? the horizon that from

Chris M. Calcaterra

aware Not I'm that of.

Joseph E. Gilliam

you the add, about happen for we is a it reversion Bob as our the in mean Joe, will. is I that if to continue outlook that Chris think Hey assume can think when to we year I saying would

Robert Hopkins

some with I you help of lot data us guys setting give wondering up can lastly little then of and showing a terms expectations a iStent you data us inject know are conference data as presentation set? was relative for maybe if it that comes that for meaningfully little different good that I on the been data bit out, should just we coming us, in about just the you've Okay from April for expectations. reason in data to sharing expect multi-stemmed just a and set

Thomas W. Burns

offset at the present the expectations going ASCRS. to Bob are that Well data we're that

color liberty or prepare want allows imagine we can how taken for data not we presentation. present largely you that us at and reasons -- disclose data the the some of have our competitive for As we've to to in meeting. That's advance striven to

So half you to, in but would able Meeting. ASCRS give any I to the won't said be let the color I it's we of will happen it year, to at going unfortunately you what do first know want the happen

Robert Hopkins

will question enough, guess what that it structural the is seen Fair the previously response I April. hear I make different of and perhaps there be your we've something but there point really from is in

Thomas W. Burns

Okay.

Operator

line question Weinstein. of next comes from Brian Your

open. is line Your

Brian Weinstein

for has that questions taking in the there's thought hospitals you that, little that bit in about we couple if flu talked know -- surgical have particular thinking suspended procedures of January many reported a so to first, to active as how to of impact you how how Couple but how the thanks? I UK there you're nice that and a just about question. begin the the and have some companies for about have think have you you about and month with in on result a seen obviously in other of volumes in then impact factoring it others, QX guys, more, any wanted potential the from Hey are thanks of guys see

Joseph E. Gilliam

some flu that in season. recurring of Hi or aware topic that is course that modest cancellations, I severe can calls other I disruption, have a several Joe. been somewhat coming in you think Brian it in patient has am up rescheduling theme,

think that you in less is seeing what there. terms know us to rescheduled be get for of tend procedures these and we're impact I much in the

quarter next. So a it particular you had procedures is if think us. less now right impact shift at I that dynamic the some of you material end of see the in spike for the into But a could

Brian Weinstein

Okay, argument you can pretty but that make as cut, going Tom made you're seem you that it you about some comments previously about this to is to where and with seen then the obviously do push you've far there you've would then do seen if clear code, XXX eventually volumes not talked stronger reimbursement, to on into still as a talk about reimbursement potential such those you characterize about that you've and would how impact, that modest what in sooner? thinking to think territories level CPT one a already XXX to

Thomas W. Burns

you ahead. go Yeah,

Chris M. Calcaterra

is is unchanged. it Chris. Brian, Hey Really it

it's where the a said impact the now. past -- really with that specific it's we is it fee low radiant right a and of had that Pro is in to area We of modest what Speaking consistent country.

Specifically slight have business a impact had our it overall. with a on minimal may to starting overall iStent. out But new impact physicians it's

Thomas W. Burns

the second three tell of And and assignment the would where what Brian is it's answer the are that I'll with question we're and balance -- so, in how we're on marketplace. us overall your you we serving pleased category with part I

of cataract of would cataract, down principal minimize procedure even So technologies view the would reasons that into it that rut the procedure be analysis overall procedure we value believe to adoption procedure. ascribed the to continue an $XXX which if as our combo will part valued would on to category and the of current code moving went hesitant robust we be to make they these fees we us the is the overall goes ancillary think to And one as be $XXX would range to forward. if convert one

can treatment the for present value robust give wait case include opportunity a for you as the a most us which a would which are perioperative standalone pre-operative methodologies want that well entailed as procedure. standalone all to period So imagine we to would post-operative

So we and you time. we'll monitor continue this review to can but at from this continue see like where to to will we're time

Brian Weinstein

guys. you Thank

Thomas W. Burns

Brian. Thanks

Operator

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

line open. Your is

Lawrence Biegelsen

thanks guys, the for question. taking Hey

and Just the couple a follow on one competition. then of ups

Joe, price do be So now because you interpreted planning you you would are still Inject Inject to to I I question slight guess a premium, that said it at earlier, not understanding way at premium? a the expect price stable, pricing I'm the commentary is if price

Thomas W. Burns

Larry. I'll that I answer Yeah, think

I think that continue the principally year. the the ASP of Joe about over would was talking course

iStent when product. think would a modest would we have at Inject reaffirm iStent I premium the current we to I price that do to expect

APC are the think the have been that think We consistent, in to we that product there's do deserves consistent premium so. so And enough in We position headroom start. value. from the we

Lawrence Biegelsen

that questions helpful. how year-over-year anything seem and you've have percolating back basically does the early in the started different kind new color -- this be to have share or growth flat peaked too in not is mean CyPass in ones on on guidance shifts it Thanks looks it look half? share about U.S. is rates And given Inject lastly really And it read has of Tom, you growth last the might their the has like mean for that assume might myopic just community, growth me, you with the CyPass, what year the mentioned to Joe, That's can the United implying sales cadence the any taking lot States, the I from know guys. I on of prescribing? you've impact rate to clinical just also through I a competition, two

Joseph E. Gilliam

thanks Larry. Sure,

with cadence So your rates. the of growth first I'll relative around start question sales the and quarterly there

that we'll coming from have offsets about a first the to than to additional it of online of of Mike think that you the you why certain only the a and in extent product. you question our you a competitive more think of directly reason the -- benefit asked Inject typically impact slightly So you that price but of half the was the is the I into the as translate that year think the But make bit have seasonality second translating which net confusion. year over markets. muted could half will we is in cataract additional second that as I would it the obviously measured Well, is expect that if course you expectation additional that the quarter think get trying the beyond and start if also the it around trying launch

Lawrence Biegelsen

helpful. That's

Chris M. Calcaterra

and field trabecular in seeing the that CyPass the what preferred for validates of to past reaffirms Hey the am dynamics the going people hearing happening what say gives. Larry is who out And haul believe that bypass largely out space. really in competitive CyPass the bypasses prone specialists the comprehensive be are trabecular is the and you to to that laid what suprachoroidal around profile is literature remained more address Chris, we've riskier. majority this long you're and I And shunts trying it that able look playing little we've are risk going on that said that would that's are bit and efficacy when because work ophthalmologists your ratio and are the I all profile and in safety out. think you that's question unchanged the CyPass the profile second to out benefit there, along. we just glaucoma I gravitate but And the of similar Really for is to that to efficacy over the all both the a the of the at safety

Lawrence Biegelsen

Thanks the for guys. questions taking

Operator

Stifel. line Your from comes question next the Jon of Block from

Your line open. is

Jonathan Block

a taking guys, to for or does got commercial there of parts, an one had and thanks I've questions. afternoon, several of follow the up? Joe called Chris, payers and a an one lengthy and update you I Hey the is I bigger then when moving this commercial for the of first still as and on resolution is assumes specific the was update sort headwinds in good XXXX that mid-year think you guide the sort is there scenario guess payer

Joseph E. Gilliam

Jon. thanks Sure,

So first this is Joe.

to happen expectation first we at On in that of point and considerable linear on We're the over insurance the folks that was we board point linear in on a are would course from track. of And the on this what of expect somewhat first so we've is was over the third part field. said resources what the alleviate fashion today that making they're a The we accomplishing fashion somewhat of with XXXX. half remaining the to quarter through half year. commercial additional and in brought here the continue that the we our pleased that help side that that brought -- the progress sitting resolve resolution and programs to

Jonathan Block

would sort XX% very question, for put share a market XXXX try then share our XX% full considering got it, in XXXX of implied assume gave flattish in stake a the market the and guidance for share that iStent somewhat if year fact helpful. sales be to let ground be second XXXX I you I U.S. XX% year-over-year. me but U.S. believe you Okay, around the growth on need the And would the

the in one and guess second of of in the the a is max seem sort couple ballpark to question to would is where quarter So part out around line the guys. share be questions; the I concomitant that expect competitors the be right trend one, Thanks market? of you and on then

Joseph E. Gilliam

may that off or comments. start Tom I'll Jon, Chris additional Thanks and have

what say that's market so think in answered expect you we comment for the out growth the of MAC respect from doing continue the on dynamics what -- think CyPass assumptions. and there to [ph] I relative And see estimates question coverage can speaking that sort your our confident point. diligence remain going here, timing long-term. on are think then going into to much a business. would We the at your you'd that think our second for in market think position that that Chris I marketplace. of specific are in you So is the information sort your understand to I on -- just have think needed And the going step I for in part you gaining not I things in we put we of this that a given to the stake is probably far the to with too can share to of we're share to from based specific what happen be is market think translate and think a I we the what But ground

Operator

of Matt next Your from Piper from line comes Jaffrey. O'Brien question the

open. Your line is

Unidentified Analyst

Inject, on Thanks still to trying a it to for XX% just outlook it this just that back the is just U.S. for for the this on on your there I'm the down the Hi U.S. waiting why in trying color reconcile, to the early price JP afternoon, just guidance market go and little MIG maybe going in would volume overall good bake question. and the and or is commercial penetration understand wanted flat year I strategy be the be Matt. a game is helpful? maybe for everyone the when increase just to is this of bit, to you is

Joseph E. Gilliam

Sure, is it JP Joe.

you growth the two what consider. primary saying about what we're try think that you and guidance to So when I our reconcile is dynamics from market elements here to need really between we're implying

The from online ultimate assuming by first upon half of their And that potential the time on something of really may things course of to be our half get your you of gaining occur the is competitive in then that period diligence market thoughts second awful think full a can there the that second an back the year. have And in share to that start year there obviously in to like and in filing And those factor guidance. MAC over what lot two what I came were for you in have adjustments over they you additional factor whatever CyPass you alone. based coverage second and will as make the looks we're you'll XXXX. seeing impact when

Unidentified Analyst

XXXX what Okay, -- asked can and or or on on introduction? some market talk of Inject about kind then that product just that just am acceleration to and trying we how many the in the the you surgeons sideline I see for you introduced waiting of on maybe Inject get not should maybe based when just whether you an

Chris M. Calcaterra

of -- What we've would data, And the product, the the be to product would the is And iStent to I XX% there time high Inject been as using say launched about have help I iStent even JP the we've the enjoy yes. waited for them Hey switch does have very that Chris. is majority people converting the this and exact enjoy waited that expand market of for and or while don't to it for Inject. XX% to answer successful. iStent over where customers is as we're who

Unidentified Analyst

Okay, thank you.

Operator

Joanne Capital. comes BMO from question from Wuensch next Your

Your line is open.

Joanne Wuensch

taking in revenue the questions last thank pull the have of you or that the Hi, you couple and evening. recovery for third good A quarter? hurricane from did in order, forward question particular any

Joseph E. Gilliam

Joanne. Thanks

at very we third was I majority in in quarter. think call said that the of the we tail quarter the the what September third recovered of end

but was significant a amount. probably not there over a the into So material of bit or fourth little carry

Joanne Wuensch

an things the us was that? Okay, some one doing on you on pay of side give are world, in push about year spoke where the private that addressing update back sort last you of that of could or we the

Joseph E. Gilliam

ground for XXXX. consistent on so of of think side remain made terms a the people with are the in so the Yeah, investments in on in we making track. on I and the commercial the expect we earlier the would said first half what we're insurance call investments the We quarter track on those somewhat progress to linear and third we resolution

Joanne Wuensch

then And about other are coming can you you which competitive think your that? are as to thoughts mix the front but CyPass there sort address like mentioned products market, you of

Joseph E. Gilliam

of in are our context Joanne thoughts Overall guidance. the

Joanne Wuensch

petering see of gaining out, are mean to throughout for whole [indiscernible] the Alright competitive another how we momentum CyPass do but going enter a trialing? this I round of sort think year, about or you mean do I we example

Joseph E. Gilliam

don’t specific commentary and I you production want Well which in the the with color the guidance that know in competitive trying of we year. if [ph] add products to second I'll potential half of anything XXXX is in start our trialing Chris. factored

Chris M. Calcaterra

products of the them color to Yeah, free there and try in elsewhere I'm doctors to well, new is particular like as when ophthalmology in assuming these they're given charge.

so. they do number being do be do they there happened if get this launch to given product with trialing it that what physicians that that CyPass or we a expect product to trying of similar So will when approval, and

Joanne Wuensch

my question be that one? the to Inject trialing that when mean in is does launch and iStent Thank you. I you it Okay, giving will help promise away you process of last

Chris M. Calcaterra

that. that leave do just from Yeah, I to I'm standpoint. don't want know disclose But competitive what going at I'll I a to it

Thomas W. Burns

sessile, a we that community I would color is the elegant, micro we marketplace. that reach the have to and are in And far confident invasive versus other products be or of will just not these when really may give highly some Inject procedure perception the it truly that some more iStent say do that that may

confident our how validating so of we very, And continue very in about that track thought seems to It are we on CyPass. we remain positioning.

will with marker products and new be as how how we see we think with the same future I set the and compete well. validated in them we

Joanne Wuensch

Thank you.

Thomas W. Burns

Joanne. Thanks

Operator

comes from question from next Your Stephens. Cooley Chris

open. Your line is

Chris Cooley

questions. thanks and so just taking side gears on Joe. and expense for here evening easier Good the an Maybe the change one for

half, the here those those remarks explicitly mentioned on just number which were that first your some a have in XQ. you slipped and I'm of do maybe market? expenditures in Could assuming XQ help the quantify You follow had I much the typically of prepared how the your there up were in XQ of to pass a then expenditures XXX% come the us into and

Joseph E. Gilliam

Chris Sure, Joe. its thanks

and So things were of I is though think -- -- more awfully probably are timing crude payments. they the that these expenditure word are

point elevated fourth. quarter. my rate was bit fourth run the And earlier it in end expense year is first So at versus of than the quarter first quarter that of actual the some the less payments end and at balance might of have cash a happened little the that the the about been the timing larger in of actually the

Chris Cooley

of the little that little little guess have when assuming at going getting I and more more? bit that of up. this, relative that, zero sounds shot year greater using that, just just sum I Thanks. within existent I'm step are we bit we of probably And users think am am to potential I on guess and back I assuming a a when triangulate you're deep so the physicians XX% competitive trying like half the the clarifying contemplating bit a are how that and that. bit time. MIGS number then broadly growth deriving entrants XX% at utilization thanks at you you volume market practices Okay, I'll are curious for the the I look the my more take you misunderstood marketplace game of a volume having in the little you're today, a when in guess a about three I

Joseph E. Gilliam

is the we we do is there store the expect you your the the to turnover related the incremental of that to sales take productivity and well I in of Sure, same XXXX. statistics. store that I same train we marketplace into said answer driver in that But first, directly their trends growth of sales and think doctors And account assume in for question context number more as year. the material before the then doctor we for the expect market

Chris Cooley

very much. Okay, thank you

Operator

last Kim the comes of from Your Justin Cantor line question Fitzgerald. from

Your line open. is

Justin Kim

the thank you question. taking for and Hello,

differ gears from wanted III the on match maybe and shift apart ask IIb Just the could Phase additional you to from about study design iDose, what size? share any in way would details Phase is or

Thomas W. Burns

this right. tell to Phase can FDA be with we and you similar the we Justin that as it Tom. are in we speak I really so expect data, the Yes, currently protocol is construct the finalizing II to

what submission end for the the a at efficacy got NDA alluding will we which have daily. for stent stent So file is, when you a that will the is Travoprost will look XX file looking we will at what a we'll or which topical twice week slow be dosed iDose sorry FDA we year. point compared look can alluding Travoprost XX be fast one to be with And month

be with have expect some protocol conducted way expect and the the we IIb in we so much differences Phase conducted the trial And like liberalizing with a Phase the trial we differences to typically similar would but III Phase II. that

Justin Kim

the we then should that sometime in the quarter of terms and second protocol, of expect great, in the given the Okay study? of the of finalization sort start

Thomas W. Burns

I Yeah, to be to protocol position year. in will similar a had you what tell patients in we to of January we expect be so first I the the would in half mentioned finalizing what start is and it this enrolling is that just

the going, the with have track with on Ireland know this We initial Europe to making PMDA like the you there. meeting been we protocol. also favorable where on do which some we're our progress we like And health very voluntary authority as how some we're as also leading procedure issue. forward with in the so. so in have harmonization Japan significant We're discussions charge had finalizing And we're moving

iDose clinical it remain we trials. how So immensely into to just about we get are tracking and excited

Justin Kim

Okay, taking great. Thanks for questions. the

Thomas W. Burns

Welcome.

continued and Okay, that's especially And it your for goodbye. time Thanks thank if attention and interest in for Glaukos. you your today. all

Operator

This concludes call. conference today's

You may now disconnect.

Glaukos (GKOS) 28 Feb 182017 Q4 Earnings call transcript