Glaukos (GKOS) 2024 Wells Fargo Healthcare Conference summary

Business performance and market outlook

• Achieved high-teens growth in Q2 2024, building on a strong foundation in MIGS and expanding into rare disease and keratoconus markets.

• Positioned at an inflection point with a larger market opportunity, driven by changing the standard of care toward interventional glaucoma.

• iDose launch progressing as planned, with early adoption and sales of about $5 million in H1 2024.

• Focus remains on expanding access, clinical adoption, and leveraging a broad product portfolio for future growth.

• International growth expected from new product approvals, especially in Europe, though iDose international launch is longer-term.

iDose launch and adoption dynamics

• Early launch phase focused on training surgeons and educating practices on reimbursement, with a gradual expansion to broader adoption.

• Practices are moving from reimbursement confidence to clinical adoption as they gain experience with J-code payments, typically processed in 10–25 days.

• Most utilization currently in Medicare fee-for-service patients with supplemental coverage; commercial and Medicare Advantage coverage expansion expected in 2025.

• Training is not a significant bottleneck due to straightforward learning curve; focus is on expanding payer coverage and clinical conversations.

• Metrics like covered lives may be shared as commercial coverage expands, but detailed sales breakdowns will remain limited.

Reimbursement and financial considerations

• Physician fee schedules for iDose align with other glaucoma procedures, typically in the $700–$750 range.

• Early professional fee schedules are positive, with broader consistency expected as more MACs post rates.

• Profitability targeted for the mid- to long-term, with near-term focus on cash flow breakeven and continued pipeline investment.

• Street models operating income positive by 2027, with potential for profitable quarters as iDose scales.