On Tuesday, Mizuho (NYSE:MFG) Securities adjusted its outlook on Glaukos Corporation (NYSE:NYSE:GKOS), a company specializing in ophthalmic medical technology and pharmaceuticals. The firm increased the price target to $140 from the previous $115, while retaining a Neutral rating on the stock.
The adjustment reflects the firm's anticipation of a significant year ahead for Glaukos, particularly with the finalization of reimbursement strategies for its iDose TR product. According to InvestingPro data, analyst targets for the stock range from $115 to $162, with the company maintaining a strong gross profit margin of 76.6%.
Glaukos has experienced a remarkable surge in its share value, with a 140% increase since the iDose approval in mid-December 2023 and an 85% year-to-date rise in 2024. The iDose TR, designed to treat ocular hypertension and refractory glaucoma over a three-year period, has been a key driver of this growth.
The product's expected Wholesale Acquisition Cost (WAC) is set at $13,950. InvestingPro analysis indicates the stock is trading above its Fair Value, with impressive momentum reflected in its 76.9% return over the past year and current market capitalization of $7.9 billion.
The company's progress was bolstered by the early April announcement that iDose TR would receive a permanent HCPCS J-code (J7355), effective July 1st. Additionally, the Centers for Medicare & Medicaid Services (CMS) assigned Current Procedural Terminology (CPT) codes for iDose TR's procedural component to a specific ambulatory payment classification.
Following the assignment of these codes, Glaukos expanded the availability of iDose to its entire U.S. glaucoma salesforce in the second quarter, marking the transition to a "full market release" phase in the second half of the year.
Although Glaukos has not yet disclosed specific sales figures for iDose TR, estimates suggest a gradual increase in revenue from the product, with approximately $1 million in the first quarter, around $4 million in the second quarter, and an estimated $8.5 million in the third quarter. For the fourth quarter, projections indicate an iDose revenue contribution of approximately $12 million, while the U.S.
Micro-Invasive Glaucoma Surgery (MIGs) segment is expected to maintain a 13% year-over-year growth. The rest of Glaukos' portfolio is also performing well according to the analyst's comments. InvestingPro subscribers can access 12 additional investment tips and a comprehensive Pro Research Report for deeper insights into Glaukos's financial health and growth prospects.
In other recent news, Glaukos Corporation has been experiencing significant developments. Citi upgraded Glaukos stock from Neutral to Buy, with a positive outlook on the company's iDose product. The company's iDose revenue doubled in the third quarter of 2024, reaching approximately $8 million. Furthermore, the coverage of iDose by local Medicare Administrative Contractors (MACs) is expected to significantly improve by the start of 2025.
Glaukos also secured approximately $53.2 million from unwinding a portion of its capped call transactions, originally entered into in connection with the issuance of its 2.75% Convertible Senior Notes due in 2027. In another recent development, UBS initiated coverage on Glaukos with a Buy rating, attributing the company's projected high-20% compound annual growth rate (CAGR) through 2028 to the success of its iDose product.
Stifel increased its price target for Glaukos shares to $153.00, maintaining a Buy rating, driven by optimism for iDose sales. The firm noted significant growth in the number of iDose-trained surgeons, suggesting potential for sales to surpass the $100 million estimate set for 2025.
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