GKOS - Earnings call transcript Q1 2022

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Operator

Good afternoon. My name is Julien and I will be your conference operator today. At this time I would like to welcome everyone to Glaukos' First Quarter 2022 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session.

ask during to Instructions]. time like you'd a this question [Operator If Lewis, Relations conference. begin Investor President Corporate Chris of may and Vice Affairs, you your

Chris Lewis

you, good Thank and afternoon.

and and today Thurman. Tom Glaukos me Gilliam, Chairman Joining Burns, CFO are President COO Alex Joe and CEO

of website has begin, it's to with forward reference strategies, remind the details the and easily document section with be quarterly the this plan under the we a it's designed and in for and associated you statements earnings starting before Investor we wanted the business be that we and handle calls to the scheduled our of with This Filings by to posted one. continue to provide release, objectives been way and we on Quarterly quarterly provided document Quarterly call. community Before titled and investment has facts alongside conference a investors This Relations regularly document and company's company document read may the change will The make. the designed any accessible key company's Financials guidance state is the to quarter, earnings the summarized disclosures press Results Summary.

To will quarter, change this going make one questions, more a and yourself ample and and one quickly we our question-and-answer very earnings we transition beginning limit efficient such, this brief quarterly you As into forward. and ensure that goal our session. make will prepared that remarks It to opportunity process is follow-up. for community investment address request the time to everyone's impactful question

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

You'll find Investors section these documents of at our in www.glaukos.com. website the

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

Tom Burns

thank $XX and Today joining but net hope Glaukos afternoon of us today, basis. first reported versus X% everyone approximately doing and Good quarter you well. sales we million, Chris. and and is all constant-currency a for the safe certainly Thanks, quarter on up year-ago

franchise a January reflects headwinds first-quarter glaucoma became the face and the continued cataract headwinds XXXX. COVID our of performance resiliency effective global in franchises, solid particular dynamics our U.S. across rates Health execution been and on and -related combo the volatility in that reimbursement strategies globally, Corneal physician final amidst the associated glaucoma From pleased our very we've Our far execution CMS reimbursement XXXX U.S. thus Xst, XXXX. commercial in of combination perspective, with cataract of with the and fee

quarter, During perform this that customers goniotomy the invasive device procedures. both and minimally has of that latter features Iaccess allow will first part we our launched tissue-sparing

to businesses. We glaucoma well. soon also we international forward as bringing strong to And iPrime these important to look Health franchises Corneal results and continue customers develop our deliver as

to results our first-quarter better-than-expected We previously raising versus forward $XXX are million range $XXX our XXXX million guidance and million given net $XXX to to outlook. million $XXX sales latest

approvals development this product. K TR Phase III and presbyopia for NDA iStent in a FDA recent trials dry remain XXXX, of continuing and front, for Epi-On. focused for Activities iPrime, mid-year and submissions clearance important on targeted iDose remain potential continue or clinical advance the is to Iaccess Epi-AXA, X,XX review and our the underway. infinite the pipeline, the On and track well eye FDA on of iLution following we we clearances and

FDA it's non-approval. PMA did company that notified [Indiscernible] PreserFlo submission SanTan the of is Finally, MicroShunt recently

and encouraging of alternatives in optimal clinical MicroShunt as outcome late-stage intend they is treatment. steps. with glaucoma FDA the globally Australia, driver determine seek to next a this regulatory our commercial This feedback our potential the disappointing for near-term While is We business. given material engage surgeon product positive with and and early to not Canada experience

patients diseases. long-term over robust are care Before time new transform meaningfully to suffering the our a and introductions product anticipate strategic we fundamentally for open of up standard less our Glaukos the of vision. for that questions, and I'd sight-threatening over We improve reiterate have coming and to platform conviction planning cadence the in drop from outcomes the years advance potential and like

to scale vision to We our continuing in to with are platform advance mission and game-changing disruptive, invest Glaukos transform less, team, innovations. drop our to

we're prospects in years excited plans about our confident execute to our and come. the to in our So ability

And Operator. to the so call with that, questions. I'll open

Operator

[Operator Instructions]. you. Thank

from first from Our comes your Please Andrew William Blair. question Brackmann open. go is ahead, line

Andrew Brackmann

afternoon the new questions. I Hey thanks guys, and for like format. this

around in degree, of start and that, procedure on and just So the has Chris congrats reimbursement. room investors the here multiple a pressure questions to Obviously, certainly are the Maybe been the for this because you together. all team putting have elephant to address stock to that. under having

just about your that iPrime landscape and what the on to with to us thoughts you're how topic, just there specifically, you your means So Thanks. talk can business? viewing and Iaccess it

Joe Gilliam

sincere volunteers Pesh in Obviously, thanks a there's as well. Chris that. and There's a lot been this. lot on Andrew, Thanks, activity of his investor-related

can the topics, follow-ups, to we it. we handle I'll So if cover and core got try

and I they meet and performed think would that to deem reasonable. necessary allow code device not firstly features itself. as And is we CPT it surgeons the has procedure definition just relates by Iaccess reminder it the believe a as a procedure if perform Iaccess, the reimbursement for XXXXX medically goniotomy of and determined investors, to that

cataract, it procedures you XXXX, being iPrime cataracts, to it medically AO question and formerly March this feels coder definition In where year, bulletin procedures, with as savvy weighed of patients. also subject necessary and of XXXXX to bill more bulletin you their XXXXX heart that is device if reasonable code XXXX, with for is a perform recently, to As they Stent is then medically you meet own it's benefit in clinical we And the discretion. that as XXXXX already can iPrime, conjunction at these appropriate. they and a procedures think of surgeons canaloplasty if stents be CPT build plus put XXXXX use about in that to the And to appropriate. goniotomy of deem your on should should the released necessary stated, in similarly, as out maximize they a believe really pairing of is and a performed in relates the performed the a conjunction a pairing then surgeon April the if

increasingly appears are procedures. in altogether, think put I multiple surgeons So we it the it day, to turning many

have provide benefit surgeon to this the max sight so benefit do given minimum a tools goal to truly doing provide and our markets to is their the so. alternatives patient, the is and overall ultimately with grow Now to patient to threatening the they overall invasive while disease, and maximize hopefully

some provides community. that little a to been clarity that's the more the So investment running information -- in flow of I Hopefully think

Andrew Brackmann

on the be switch Certainly. sort Joe. topics relates Thanks focus for just but maybe quarter, million to you it's so can only And so and if beat here if handedly it's $X.X I pretty I so as think guidance beat it then street I the to quarter, the of the full-year for a raising you near-term second, $X million. but buys, that, range by or hate

us you Thanks, to range? additional So in that Joe. just can about for with or process and our changes in any the detail give talk respect updated us assumption

Joe Gilliam

Yeah, sure. Thanks Andrew.

Well, I think look. --

doesn't first namely to as we single guidance having for still the I year pleased we We acknowledged the competition on. globally. this quarter, the into versus out we positive the lags will really without coming year, the think we was also about cuts, goes performance quarter as the products, the the And that, know competition with to of the and setup prophy happen year. and benefit change new results the and described get how a to context that, that while the First, fair the early continue to it's it's our expectations and risks said largely of provided those U.S. turned all impact think that the in year and in it side, see for quarter. remainder of say year entering were But say of the and on not

as move here, here. as other to are think And considerations factors COVID macroeconomic we like don't playing about, to we still that as admit it, have we the FX remain out there. so have We risk the much forward dynamics

pleased put by that I coming bottom given all million initial think we $X months were So the after guidance raise into us facing year. be everything to able was you just end the the that if to together, two

Andrew Brackmann

guys. Makes sense. Thanks,

Joe Gilliam

Thanks, Andrew.

Operator

line open. Please next comes from ahead, Chris Our question your from Stephens. Cooley is go

Chris Cooley

on and great year, new such Congrats questions. is the way his taking let echo also a for to job thanks to start team, and call. briefly sentiment. and Great the to me a Andrew's a better afternoon, just this do Good Chris

thanks So you guys.

year, saw little Just us bit I XX% in growth decline U.S. a there the should that a saw, bit Help say, the little questions, the two my what of you think how much you the could about assuming we of glaucoma follow I've we as terms and unpack in in of And particular, that And franchise. Iaccess in up. was volume-related about terms you're both price. through from iPrime. then quick back versus contribution stepping a think the then got up

Joe Gilliam

you right. for the your Chris. Chris, question. kind All the comments also beginning Thanks, of thank in

in guess On stable. largely the I answer first pricing I this the part, first quarter, way, remains would stable

there seeing the performance you're glaucoma the segment translated what course a dynamics the is first to quarter. largely volume So of from in is over overall U.S.

Now, two there's probably things there. going on

was dynamics professional question? a recall, have in the around that beginning COVID course your globally was the the on And then February. still As early quarter of reimbursement. January at changes top second in reality the of What of the and fee you'll we

Chris Cooley

ahead, was hit bolster with online. thinking domestic but I just No, just iPrime, that the contribution of franchise, I from that overall the the about Iaccess helps that how second moving to was it. that going and glaucoma follow-up -- -- and can part

Joe Gilliam

answer I That's can that. fine, Chris,

when product from -- and and think the guidance for of we relates if iStent we'd over under XXX, those launches I think expectations remains from the the year. the we some would And to we Iaccess gave it that iPrime year going albeit that mentioned modest include see to that the I forward, infinite course contribution, XXX the case.

year progresses get doing contribution ultimately are a think those we'll to it's more, at as this So from I in stage, our around products what top-line. terms have utilizing how too lot far those driving your of adopted in the being say ahead of wouldn't I

Chris Cooley

second have I progress? moving and and a if clearly just iDose here in cadence you the a strong quickie coming we iPrime could squeeze in, as controlled Epi-On with well. the launch But in have And just in how very the Iaccess quarter start Thanks forward, trying to are we thoughts here, there across-the-board the of about and the put just track how thinking both data there you iLution out will for kind again. platform kind of some dry to and about markers to eye presbyopia, see think can we milestones just

Tom Burns

-- is and You're this Welcome wel thanks, Chris, Tom.

on with the we I'll platform so have the answer iLution. foundational And question

which as able about itself, to the as as depot to but a itself the as new only gives of the provide to this, fusion platform, or segment you either that into opportunity know, using we able to enter travel cream the not front think the the to depot of disease. APIs eye to excited will a penetrates So act conjunctiva an eyelid, for [Indiscernible] different get we're the treat be slower and tissues effect be of the it

So think that Likewise, I complete guess, have a And nearly Phase also as that at clinical we've placebo by twice of in difference proprietary symptoms. the I that two with product determine if able make said looking XXX-patient another to -- to evaluating the effective. you with treat dry May pretty clinical we know, are us to we're a study, clinical pilocarpine is disease, presbyopia, look clinicalglauk.com, reports be to formulation to tracking launched, XXXX safe iLution the trial we'd US we and able there a One clinical a beat and to on day be for this signs efficacy, to proved that, at XXX presbyopia. patients is know, in pilocarpine eye the million And iLution safety we looking what as at you and cream substantially. clinical the studies. II versus plan and

and trial I well. We as also we'll our that of XXXX of completion that the of leads believe clinical that see progress have May to me beat consoled

hope concentrations that give III we'll Phase would trial. determine be obviously order eye we will what should in dry in some of to presbyopia. our what looking at disease treatment So difference a you into various to we appropriate make clinical of be ranging indication looking at, And be at dose and the to take

Chris Cooley

you. Thank

Tom Burns

Thanks, Chris.

Operator

Wells Our ahead. go Please next Fargo. question comes from Larry Biegelsen from

Your line is open.

Charles Wilson

for on Wilson Charles is this Hi, Larry.

right, the I First, iDose. for think like congrats if present disclosing top-line full you Do quarter. this be year nice one the the a III that on Phase complete results for June a on year. follow-up, you data? before It's a medical you'll question had the in have able is in had to the study in this plan I approval? Do conference

Tom Burns

III be certainly latter both releasing at as early And is looking stated part year. of doing I year be pivotal what this probably will. the trial, we the was datasets, this by before, Charles, at we'll looking Yeah, the tail-end and Phase called or year, next

you and some So indication that give those on and that we're results available. should -- strong that track have we'll

Charles Wilson

Okay. Thank you.

Operator

question Zimmerman Ryan go from ahead. from comes BTIG. next Our Please

open. line Your is

Phillip Dantoin

Can this Hey, hear Phillip me right? you on Dantoin Ryan. for is all

Tom Burns

We can.

Phillip Dantoin

two questions just quick have here. I Great.

across Just with number consistent coverage there's one, combined of not MAX goniotomy for stents the really U.S.

your So positively is could LCDs both what expectation change that or negatively?

Joe Gilliam

to I'll add can. Tom Phil. wants if and off anything, certainly Thanks, start he

that the no in iStent different you mix the as launch. to what continue move variety through gone keep you things advised over relates the of we've I years new launches, we and through through. with devices a with those worked iStent than think product it inject you original through and to go MAX anytime you We'll have its dynamics work forward. That's

Tom Burns

that reasonable, powerful necessary deem position able lately been disclosure for and to both would which codes the surgeons for has to surgeons use codify can be as it medically measures by the they code Stent AXX if goniotomy these and the and a and What's be that the how XXXXX used release taken the academy, XXAXX procedures. is and

to to and influence a positive forward. me, way marks, powerful going to these at be very them way forceful a a to us And approach arbiter gives so able that's

Phillip Dantoin

And for the my the iPrime? meeting you a as risks that this? at Thanks we what far on one, are Awesome. on sight Thanks. should this, of just color. as potentially present second then upcoming this expect canaloplasty. What Why on have line discussing does AMA we

Joe Gilliam

Phil. Thanks, Yeah.

that become given terminology asked think bit To to used to code. this the about an basically discuss what addition The provider a CPT panel. editorial questions and example, that is parenthetical We believe clarify in January parenthetical AMA I it's effective proper XX,XXX, misconception a for, canaloplasty. AUO this will of there's a XXXX. been of for in around example for expected the code ultimately, simple upcoming little be of

Phillip Dantoin

Makes thanks, transition sense. And on guys, congrats but this [Indiscernible] and format. thank better again you. to the

Tom Burns

you. Thank

Operator

Our from go next O'Brien Sandler. Please question ahead. comes from Matt Piper

Your line open. is

Drew Stafford

just how with or can Matt, as the as Glaukos I marketed for an off, Drew changes your is questions. impact speak This maybe far as to guess is that seen into guidance. far so taking start the update you're Hydrus, you being that guys. Alcon Hi, for on anything and device to to, any thanks baking

Joe Gilliam

financially -- set in Obviously I'll Drew. now. us competitive we in of like guidance the that with the Thanks year. in dynamics, all And an as the as see our thought we including that of control the this and bottom we we've obviously say factored year originally, we before, for latter you've stand respect as line the Alcon's factored of time, now the tremendous and have our about them obviously for factored say acquisition in start the we and I Hydrus marketplace they in say the raising have would Alcon we full have of amount we for so organization. of heard several Ivantis, guidance for years a that expectations

more legs the from a to but year the of not expect standpoint, their But the here would in of they them course continued the would I just U.S. globally. competitive fee So say continue over see get continue we'll it's I same. and

Drew Stafford

I then in the year -- it like sounds earlier U.S. here some XX% of makes largely that the volumes. that be thinking decline trialing. sense. the just would about related to temporary competitive that's in assumed that And Okay,

gone devices to any to you. come surgeons and down? Thank to wind just sense you other some activities back Glaukos, So begin you some how for and expect trailing those Glaukos, do of had for have that try trailing temporary of have when

Joe Gilliam

answer. It's one to a fair it's hard a question,

trialing I some become losses reimbursement, -- to patterns, you will, think fee some in be of some some situation anytime potentially of come go have it. the the a physicians has disruption trying, like to back, professional customer which as you're ordering going through of be in which adjustment will aware of which continue and

think the what first encouraged fluid guidance that's it the and in quarter a reflected by we I gave. dynamic. remains saw we We're So all in

Operator

question Our ahead. next Please Stephan go Stifel. comes from Tom from

line is Your open.

Thomas Stephan

Great. XXXX Thanks our in to A the among reimbursement in in questions. for changes. products, that of lot just there Hey of I checks marketplace picture. with start new just seems bit a be lot we everyone. If can pick between MIGS a happening up things big doctors. the obviously And confusion

your hear So just guess, the out? guess love market to competitive the I perspective may and you how the dynamics play today ultimately on of would U.S. believe state I MIGS longer-term,

Joe Gilliam

and to that. Tom. Thanks, if add comments I'll Tom, then, want to start can off add you Yeah. you

with products evaluating that, have. that that has what's here of to surgeons of are that think are whenever been that disease years, go and is fair it XXXX. they recent there as a or I be state the navigate introductions the own true our new some through you patients number do we in including the And optimal of product available and their going algorithm

that some we there be that So as here, it's go I now, all think this. through of natural

portfolio long the they alternatives I these was of part heard as at mission for for move the surgeons you've that say a of Glaukos full to think provide forward. us time

as map we and is our market forward how with hopefully those benefit goal in those think think algorithms that. I provide these maximize product invasive to patient So we look and while surgeons to the the about may the minimally I to against do our engaging portfolio it. discussions most alternatives Ultimately, and that expand are overall

Tom Burns

use of they this, surgeons as the as entered am near-term from a number end because hearing intraocular are need be of as and in add arrest just to their may Clearly, procedures That through how to that the probably What look to able additive be be the in be we've with sight-threatening us encouraged period the lower legs what the that forward of to over would get we their to a either able this or algorithms. build little in of to and of to is use of to able we procedures this marketplace. to think ourselves independently confusion own by leaves position to a been very perhaps to that surgeons that there want drive And I get I pressures alternatives very, you're as very synergistic grapple disease. of there's market. I pressured some a at sea And have movement good move put there. them that,

Thomas Stephan

it. And pressures, moving makes can view kind mindful that whether gross If be quickly the I or just pipeline. sense. do Got to talked supply updated we guys Thanks recently? any feel range sit XX% still or core then parts relation here in inflationary chain with pivot today portfolio comfortable particular you've guys. to That to in it's disruptions, XX% we as any your about you of margin should of,

Joe Gilliam

points it view. Joe. to start Alex the I'll for it's -- turn with and macroeconomic I'll some of I'll Tom, gross then margin Yeah. Maybe the

to organization we're say supply ingenuity and world our and certainly you more all how I that, not challenges proud chain couldn't responded every creativity it's navigate navigate -- continues would things required immune, successfully. our the to that think be that I new each and can of day. to they've The right? imagine and We

things pipeline, are a as here are ways, and that in and obviously perspective. the -pandemic that in human on. good, it it's so seen some on context many supply going was harder everything and resource far And so then trial and a all our do also that of clinical continued including lot the dynamics in think context various other that to than with we've the about. itself and are product But going it there. supply, from It's I partners continued And things out we of associated almost inflation relates talking suppliers playing pre

dynamic, So but far very in navigate them. to of there's real our good terms so ability a so Alex.

Alex Thurman

Tom, range XX XX%, for the believe the Alex, about margin, that the basis so a still we We less XX% the business. this than Hey, on an quarter. in And do did margin that Yeah. to is fourth-quarter. the points appropriate was XXX

are However, primarily overall our by drove percentage much as mix. revenues a revenue correct international of we've being that the lower express bit that we our one. in still geographic that you said, the internally a was we driven believe still fact And revenue margins. pattern, U.S. in margins international than to -- higher and And mix our it XX bit. would same which a little target XX, is But historically, down that the our given little ranges and sentiment first quarter, we

Thomas Stephan

Very helpful. Thanks, Alex. Thanks, everyone.

Joe Gilliam

Tom. Thanks

Operator

next go from comes Please Allen Gong Our ahead. JPMorgan. from question

open is line Your

Allen Gong

quick good the few I had ones. congrats quarter. just guys, on a Hey

core back really to is any a glaucoma things you give on hopefully practices your The levels the as and first with in quarter business getting back one of obviously normal to on for earlier them trends normal to get physician of prepared for strong to volumes? very and dynamics stocking that

Joe Gilliam

associated stocking COVID with general there don't really you just a anything, was the answer question, of and I with is any environment. but good if think I associated think more results, the noise first-quarter it's had sort no, a little dynamics bit the

Allen Gong

bottom already lines this, think it, Got of just quarter but glad very up. you're asked something to bottom sales someone range. in if end and the that the the see the guidance of along annualize had I already take you the it. at first I'd range moving even the But of And

we assuming trends and competitive as these a a hopefully about improvement we more of trends are And assuming back broader competitors, new the by gets seeing strong think better? Alcon be said, bit Is products little offset it a new what just off better, maybe top Thanks. when as bit should sequential as dynamics? range hopefully the ask just for you I should be other end Alcon, launch, where getting little really that such first-quarter. a the you So little the we get products, why and from isn't yeah, of pressure better,

Joe Gilliam

$X prophy competition the etc, factors, overlay we you quite this came dynamics were and the to FX-related the guidance. the fair said in COVID bottom still are it's frankly, But quarter cut months generally. into earlier, and And by we giving context pleased the first able risks the considerations, I macroeconomic face in of still pleased that just early some quite think that the the I to the year. that of expectations acknowledge and then risk, namely it's just just year we played out when with I million, entering the Again, into entering face, that think range two call raise we after we our as we relative way the our the initial

Operator

comes question ahead. Oppenheimer. from Litchman Please from next Our go Stephen

Your is line open.

David Kuang

new for April to Hi, the can taking if flow, provide thanks any and you was this latest is on David Steve, wondering patient through volumes, backlog? you're procedure the Macro for Outlook seeing questions. relative on color I more

Joe Gilliam

In terms have in that of when think geographies. you David. individual answering you question, to general, Thanks, about -- have it to

for more expect I there pleased think dynamics camp, that and procedure in we Internationally, out. and those as dynamic. the years still COVID, sometimes than with I It's think seen less you'd but used months around gotten winter the U.S. a it's almost markets a procedure pockets of not COVID same little of something what create flow, put dynamic out relevant that volumes, the disruption than that into that that but still we've is being the things in Macro come been call longer seen of to temporary, now, are temporary I U.S. stability resurgence sometimes the a the past, we've and in little than into that we've to here over in in spring two bit the we've bit terms that

David Kuang

trend spending should And on then question just the for should OpEx think plan sales products investment Got Thanks. or we the pipeline any this that additional year. to we it, about? there Is reps how thanks. one rest of significant about think

Alex Thurman

Alex. Hey, is OpEx. David. the to question This on take Happy that

saw, it's a the $XX run for we million posted that in quarter, as you So if which about million. about you the non-GAAP year, OpEx out $XXX first

However, past a true, million our and said we really rate that is in believe holds year. the business still run around has for the this justifies Joe $XXX

the to would OpEx. to get you're you put which about that model, that of that we going XXX So think your level into encourage and says to also year increases to sequential over to that see

David Kuang

Thank you.

Operator

have no over closing queue. I'd for call to We questions further the turn to like in remarks. management back

Tom Burns

is and everyone time We interest is attention want in today. for Corporations. thank for I you and This thank safe continued Tom, staying Glaukos you and we hope all to your your again

that, with goodbye. So

Operator

This concludes Thank call. you today's participation. for conference your

disconnect. now may You

Glaukos (GKOS) 4 May 222022 Q1 Earnings call transcript