Glaukos Corporation (NYSE: GKOS) is focused on the development and commercialization of novel surgical devices and sustained pharmaceutical therapies designed to treat glaucoma. The strength in the iStent product line and solid execution across its global glaucoma and Corneal Health franchises augur well.
The sustained recovery trends across segments and solid business prospects in spite of the pandemic-induced uncertainties raise optimism. Recent strategic alliances instill confidence in the stock.
The company is also engaged in boosting its portfolio through the development of new products. It currently has seven clinical-stage trials and another three preclinical development programs underway. A number of these pipeline programs are in active pivotal clinical trials, including iLution Travoprost, iDose ROCK and iDose TREX.
The company's shares have risen 58.2% year to date compared with the industry's 8.4% growth. The rally was primarily driven by top-line growth in the past few quarters. The S&P 500 Index was up 14.4% in the same time frame.
However, stiff competition in the medical device industry and vendor uncertainty are other headwinds. Meanwhile, a stringent regulatory approval process for the iDose platform and products is a woe.
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GKOS' Products Driving Strong Business Performance
During the second quarter, GKOS' glaucoma franchise witnessed growth in revenues, driven by its iStent portfolio, coupled with growing contributions from iDose TR. The company commenced the initial phases of the controlled launch plan for iDose TR during the reported quarter.
Per the second-quarter 2024 earnings call, iStent continued to demonstrate robust demand with positive surgeon feedback. This primarily highlights its three-stent solution favorable safety profile and streamlined injector system. The company's continued advancement in key market access initiatives for iStent infinite looks promising.
Continued strong demand across international glaucoma and Corneal Health franchises should be the key top-line drivers in 2024. Moreover, the commercial launch of iStent Infinite in 2023 is boosting the U.S. glaucoma franchise, which should drive growth in the upcoming few quarters.
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