Glaukos Corporation GKOS is well-poised for growth on the back of favorable clinical trial results and a robust product pipeline. However, stiff competition is a concern.
Shares of this Zacks Rank #3 (Hold) company have risen 31.1% so far this year against the industry’s 3.8% decline. The S&P 500 Index has also decreased 5.6% in the same time frame.
Glaukos, with a market capitalization of $5.53 billion, is a leading ophthalmic medical technology and pharmaceutical company. The company has a trailing four-quarter average earnings surprise of 8.11%.
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Key Catalysts
Strong Product Demand: Glaukos' rising share price is largely driven by the success of its flagship product, iStent. The company delivered robust performance during 2024 and maintains a favorable business outlook, strengthening investors’ confidence. Additionally, the high demand for Glaukos' international glaucoma and Corneal Health products continues to fuel investors’ optimism.
On its fourth-quarter earnings call, Glaukos highlighted the increasing adoption of iStent Infinite for glaucoma patients, particularly those unresponsive to other treatments. This growth has been fueled by enhanced clinical education and improved market access. Furthermore, five out of seven Medicare Administrative Contractors have released draft local coverage determinations for iStent Infinite. This is anticipated to expand patient access.
Glaukos’ revenues surpassed estimates in the fourth quarter of 2024 due to high demand for its products. Consequently, the company issued full-year 2025 revenue guidance of $475-$485 million. The company’s 2025 sales and earnings are likely to improve 25.5% and 52.7%, respectively.
Expanding Product Portfolio: The iStent portfolio significantly boosted Glaukos' glaucoma franchise revenues in 2024. Additionally, the launch of iDose TR in the second quarter of 2024 is already enhancing revenue growth. With a permanent J-code for iDose TR effective from July 1, patient access is increasing, which will drive 2025 sales.
Glaukos continues to invest in its product pipeline, including its corneal cross-linking therapy, Epioxa. The company’s new drug application seeking approval for the therapy is under review, with FDA approval expected by the end of 2025. GKOS has completed two pivotal trials on Epioxa, demonstrating its favorable efficacy, tolerability and safety profiles. It is also preparing for a pivotal study on its next-generation iDose therapy, iDose TREX, which is set to begin soon. These initiatives are poised to drive long-term growth.
Glaukos benefits significantly from its partnership with Topcon Healthcare and RadiusXR, expanding access to glaucoma diagnostics through the Inspire wearable vision testing platform. By integrating RadiusXR’s Inspire with Topcon’s Harmony digital ecosystem, Glaukos enhances patient engagement, streamlines diagnosis and supports early disease detection. This collaboration strengthens its leadership in ophthalmic care, increases market penetration and complements its existing glaucoma treatments. Additionally, improved accessibility and broader adoption of visual field testing create new revenue opportunities while reinforcing Glaukos’ commitment to advancing innovative, patient-centric solutions in eye care, ultimately driving growth and improving outcomes in glaucoma management.
Internationally, Glaukos is focused on expanding its footprint. The company sells its products through subsidiaries in 17 countries and independent distributors in other markets. Glaukos' international glaucoma franchise reported record sales of $98.6 million in 2024, reflecting 20% year-over-year growth. This global expansion is expected to continue supporting the company's long-term growth trajectory.
What’s Hurting GKOS?
GKOS currently depends on a limited number of third-party suppliers, including some sole suppliers, for components of the iStent, iStent inject models and other pipeline products. If any of these suppliers fail to provide sufficient quantities of components or drugs in a timely manner or on acceptable terms, Glaukos would need to seek alternative sources.
The company faces significant headwinds that could drag down its international performance. The expiration of a favorable French rebate agreement will eliminate a key revenue boost, while foreign exchange (FX) pressures are expected to further erode earnings. Additionally, rising competition in major markets like Japan and France poses a growing threat, as new product launches from competitors could take market share away from Glaukos. With international glaucoma growth now projected to slow to high single digits, the company’s ability to maintain its leadership in the space appears increasingly uncertain.
The bottom-line estimate for GKOS is pegged at a loss of 88 cents for 2025, which narrowed 18.5% in the past 30 days. The Zacks Consensus Estimate for 2025 revenues is pinned at $481.2 million.
Stocks to Consider
Some better-ranked stocks in the broader medical space are Masimo MASI, Boston Scientific BSX and Aveanna Healthcare AVAH. At present, Masimo sports a Zacks Rank #1 (Strong Buy), whereas Boston Scientific and Cardinal Health carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s shares have gained 5.6% so far this year. Estimates for MASI’s 2024 EPS have increased 1.2% to $4.10 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 17.1%. In the last reported quarter, it posted an earnings surprise of 16.6%.
Estimates for Boston Scientific’s 2025 EPS have jumped 2.9% to $2.85 in the past 30 days. Shares of the company have surged 10.9% so far this year compared with the industry’s growth of 10.4%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.25%. In the last reported quarter, it delivered an earnings surprise of 7.69%.
Estimates for Aveanna Healthcare’s 2025 EPS have remained stable at 7 cents in the past 30 days. Shares of the company have lost 15.7% so far this year against the industry’s 4.4% growth. AVAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.6%. In the last reported quarter, it delivered an earnings surprise of 135.00%.
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