Glaukos Corporation posts net loss in second quarter 2019 of $6.3 million

SAN CLEMENTE, Calif.–(BUSINESS WIRE)–Glaukos Corporation (NYSE: GKOS), an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases, today announced financial results for the second quarter ended June 30, 2019. Key highlights include:

• Achieved 36% net sales growth to $58.6 million in the second quarter of 2019, compared to $43.2 million in the second quarter of 2018.
• Reported gross margin of approximately 87% in the second quarter of 2019, compared to approximately 86% in the second quarter of 2018.
• Updated 2019 net sales guidance to $226 million to $231 million.
• Company separately announced a definitive agreement to acquire Avedro, Inc. (Nasdaq: AVDR)

“We are very pleased with the company’s record second quarter financial performance, along with the significant clinical and regulatory progress we continue to make to advance and expand our transformative pipeline,” said Thomas Burns, Glaukos president and chief executive officer. “We remain focused on execution as we build upon our solid foundation to transform Glaukos into a global ophthalmic pharmaceutical and device leader capable of providing novel treatment options for the benefit of patients worldwide.”

Second Quarter 2019 Financial Results

Net sales rose 36% in the second quarter of 2019 to $58.6 million, compared to $43.2 million in the same period in 2018. The growth primarily reflected unit volume increases worldwide.

Gross margin for the second quarter of 2019 was approximately 87%, compared to approximately 86% in the same period in 2018.

SG&A and R&D expenses in the second quarter of 2019 rose 33% to $54.7 million, compared to $41.2 million in the same period in 2018. The year-over-year increase reflected primarily growth in our global commercial infrastructure, administrative personnel and expenses, increased spending associated with pharmaceutical research and clinical trials, increased spending associated with enterprise systems integration and a one-time R&D supplier agreement charge. In addition, during the second quarter of 2019, we also incurred a $2.2 million in-process R&D charge associated with the acquisition of DOSE Medical.

Loss from operations in the second quarter of 2019 was $6.2 million, which includes the $2.2 million in-process R&D charge, compared to a loss of $4.2 million in the second quarter of 2018. Net loss in the second quarter of 2019, including in-process R&D, was $6.3 million, or $0.17 per diluted share, compared to a net loss of $5.4 million, or $0.15 per diluted share, in the second quarter of 2018.

The company ended the second quarter of 2019 with $159.2 million in cash and cash equivalents, short-term investments and restricted cash.

2019 Revenue Guidance

The company updated its 2019 net sales guidance to $226 million to $231 million, compared to $225 million to $230 million previously. The company’s updated guidance does not include the impact of the pending acquisition of Avedro.