Glaukos Corporation (NYSE: NYSE:GKOS) has sustained its Buy rating and $139.00 price target from BTIG, following the release of the final Local Coverage Determination (LCD) for Minimally Invasive Glaucoma Surgery (MIGS) by Noridian.
The final LCD, which aligns closely with the initial proposals from late May, now includes coverage for a single MIGS procedure in conjunction with phacoemulsification/intraocular lens placement.
The analyst from BTIG noted that the updated LCD is more restrictive than previous versions from the fiscal year 2023, particularly concerning standalone MIGS surgeries, which are still emerging in the market and not widely adopted.
The LCD also aims to limit combination procedures, such as those pairing an iStent with a KDB or Omni, which are not commonly practiced.
The LCD's exclusion of any mention of iDose is seen as a favorable factor by the analyst, as Glaukos continues the progression of its iDose product launch. The analyst's perspective is that the LCD presents conditions that are acceptable for investors and does not pose significant concerns.
In other recent news, Glaukos Corporation reported a significant 19% increase in consolidated net sales for the second quarter, reaching $95.7 million. This robust performance led the company to revise its full-year 2024 net sales guidance upwards to between $370 and $376 million. The growth was attributed primarily to the success of its US interventional glaucoma franchises, including the iStent portfolio and iDose TR.
On the analyst front, BTIG reaffirmed its Buy rating on Glaukos, despite the recent announcement of a partnership between AbbVie (NYSE:ABBV) and Ripple Therapeutics to develop a new drug delivery implant, RTC-620. Meanwhile, Stifel maintained a positive outlook, raising its price target to $145 from $130 based on a survey of iDose-trained surgeons.
In other company news, Glaukos continues to invest in novel technologies, including Epioxa, and has improved its capital position through a convertible senior notes transaction. The company expects the adoption of iDose TR to grow in future quarters, facilitated by the J-code, which ensures consistent reimbursement.
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