GKOS Glaukos Corporation

41.92
-0.52  -1%
Previous Close 42.44
Open 42.31
52 Week Low 23.31
52 Week High 76.06
Market Cap $1,872,772,227
Shares 44,674,910
Float 31,914,491
Enterprise Value $1,756,568,434
Volume 233,834
Av. Daily Volume 668,669
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Latest News

  1. 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, 2020. Key highlights include:

    • Q2 2020 net sales of $31.6 million, compared to $58.6 million in Q2 2019.
    • Glaucoma Q2 2020 net sales of $24.9 million, compared to $58.6 million in Q2 2019.
    • Corneal Health Q2 2020 net sales of $6.6 million.

    "I am extremely proud of the actions, focus and accomplishments of our employees, who have remained dedicated to advancing our key strategic objectives while navigating the unique challenges associated with the COVID-19 pandemic," said Thomas…

    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, 2020. Key highlights include:

    • Q2 2020 net sales of $31.6 million, compared to $58.6 million in Q2 2019.
    • Glaucoma Q2 2020 net sales of $24.9 million, compared to $58.6 million in Q2 2019.
    • Corneal Health Q2 2020 net sales of $6.6 million.

    "I am extremely proud of the actions, focus and accomplishments of our employees, who have remained dedicated to advancing our key strategic objectives while navigating the unique challenges associated with the COVID-19 pandemic," said Thomas Burns, Glaukos president and chief executive officer. "We are encouraged with the initial return of elective procedures around the world and remain well-positioned to provide our essential ophthalmic therapies to our customers and their patients during the ongoing recovery period. I am confident the longer-term fundamental prospects of our business remain strong as we advance our mission to transform the treatment of chronic eye diseases with novel therapies that provide sustainable solutions to important clinical needs."

    Second Quarter 2020 Financial Results

    Net sales decreased 46% in the second quarter of 2020 to $31.6 million, compared to $58.6 million in the same period in 2019. The decrease was driven primarily by disruptions associated with COVID-19, partially offset by contribution from the Avedro acquisition.

    Gross margin for the second quarter of 2020 was approximately 31%, compared to approximately 87% in the same period in 2019. Non-GAAP gross margin for the second quarter of 2020 was approximately 78%, compared to approximately 87% in the same period in 2019.

    Selling, general and administrative (SG&A) expenses for the second quarter of 2020 rose 1% to $38.1 million, compared to $37.7 million in the same period in 2019. Non-GAAP SG&A expenses for the second quarter of 2020 rose 2% to $33.6 million, compared to $33.0 million in the same period in 2019.

    Research and development (R&D) expenses in the second quarter of 2020 rose 11% to $19.0 million, compared to $17.1 million in the same period in 2019. Non-GAAP R&D expenses for the second quarter of 2020 rose 9% to $18.6 million, compared to $17.1 million in the same period in 2019.

    Loss from operations in the second quarter of 2020 was $47.2 million, compared to an operating loss of $6.2 million in the second quarter of 2019. Non-GAAP loss from operations in the second quarter of 2020 was $27.6 million, compared to non-GAAP operating income of $0.7 million in the second quarter of 2019.

    Net loss in the second quarter of 2020 was $39.9 million, or ($0.90) per diluted share, compared to a net loss of $6.3 million, or ($0.17) per diluted share, in the second quarter of 2019. Non-GAAP net loss in the second quarter of 2020 was $27.0 million, or ($0.61) per diluted share, compared to non-GAAP net income of $0.6 million, or $0.01 per diluted share, in the second quarter of 2019.

    The company ended the second quarter of 2020 with $404.3 million in cash and cash equivalents, short-term investments and restricted cash, which includes total net proceeds of approximately $242.2 million associated with the company's convertible senior debt offering and capped call transactions completed during the second quarter.

    2020 Revenue Guidance

    As previously announced in a press release issued on March 24, 2020, due to the rapidly evolving environment and continued uncertainties from the impact of COVID-19, Glaukos has withdrawn its previously announced annual guidance for 2020, which was issued on February 27, 2020. At this date, Glaukos cannot predict the specific extent, or duration, of the impact of the COVID-19 outbreak on its financial and operating results.

    Webcast & Conference Call

    The company will host a conference call and simultaneous webcast today at 1:30 p.m. PDT (4:30 p.m. EDT) to discuss the results and provide additional information about the company's financial outlook. A link to the webcast is available on the company's website at http://investors.glaukos.com. To participate in the conference call, please dial 866-324-3683 (U.S.) or 509-844-0959 (international) and enter Conference ID 4185965. A replay of the webcast will be archived on the company's website following completion of the call.

    About Glaukos

    Glaukos (www.glaukos.com) is an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases. The company pioneered Micro-Invasive Glaucoma Surgery, or MIGS, to revolutionize the traditional glaucoma treatment and management paradigm. Glaukos launched the iStent®, its first MIGS device, in the United States in July 2012 and launched its next-generation iStent inject® device in the United States in September 2018. In corneal health, Glaukos' proprietary suite of single-use, bio-activated pharmaceuticals are designed to strengthen, stabilize and reshape the cornea through a process called corneal collagen cross-linking to treat corneal ectatic disorders and correct refractive conditions. Glaukos is leveraging its platform technology to build a comprehensive and proprietary portfolio of micro-scale surgical and pharmaceutical therapies in glaucoma, corneal health and retinal disease.

    Forward-Looking Statements

    This communication contains "forward-looking statements" within the meaning of federal securities laws. All statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These statements are based on management's current expectations, assumptions, estimates and beliefs. Although we believe that we have a reasonable basis for forward-looking statements contained herein, we caution you that they are based on current expectations about future events affecting us and are subject to risks, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that may cause our actual results to differ materially from those expressed or implied by forward-looking statements in this press release. These potential risks and uncertainties that could cause actual results to differ materially from those described in forward-looking statements include, without limitation, uncertainties regarding the duration and severity of the COVID-19 pandemic and its impact on our business or the economy generally; uncertainties about our dependence on the success and market acceptance of the iStent and the iStent inject; our ability to reach sustained profitability; our ability to leverage our sales and marketing infrastructure to increase market penetration and acceptance of our products both in the United States and internationally; our ability to bring our pipeline products to market; our dependence on a limited number of third-party suppliers, some of which are single-source, for components of our products; the occurrence of a crippling accident, natural disaster, pandemic (including an outbreak of COVID-19) or other disruption at our primary facility, which may materially affect our manufacturing capacity and operations; maintaining adequate coverage or reimbursement by third-party payors for procedures using the iStent, the iStent inject, our corneal cross-linking products or other products in development; our ability to properly train, and gain acceptance and trust from, ophthalmic surgeons in the use of our products; our ability to successfully develop and commercialize additional products; our ability to compete effectively in the highly competitive and rapidly changing medical device industry and against current and future competitors (including MIGS competitors) that are large public companies or divisions of publicly traded companies that have competitive advantages; the timing, effect, expense and uncertainty of navigating different regulatory approval processes as we develop additional products and penetrate foreign markets; the impact of any product liability claims against us and any related litigation; the effect of the extensive and increasing federal and state regulation in the healthcare industry on us and our suppliers; the lengthy and expensive clinical trial process and the uncertainty of timing and outcomes from any particular clinical trial; the risk of recalls or serious safety issues with our products and the uncertainty of patient outcomes; our ability to protect, and the expense and time-consuming nature of protecting, our intellectual property against third parties and competitors that could develop and commercialize similar or identical products; the impact of any claims against us of infringement or misappropriation of third party intellectual property rights and any related litigation; the market's perception of our limited operating history as a public company; our ability to service our indebtedness; and potential disruptions from the acquisition of Avedro that may divert management attention from other important business objectives. These and other known risks, uncertainties and factors are described in detail under the caption "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for 2019, which was filed with the Securities and Exchange Commission (SEC) on March 2, 2020, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, which was filed with the SEC on May 7, 2020, and will also be included in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, which we expect to file on or before August 10, 2020. Our filings with the Securities and Exchange Commission are available in the Investor Section of our website at www.glaukos.com or at www.sec.gov. In addition, information about the risks and benefits of our products is available on our website at www.glaukos.com. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance on the forward-looking statements in this press release, which speak only as of the date hereof. We do not undertake any obligation to update, amend or clarify these forward-looking statements whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.

    In addition, with respect to COVID-19, we are currently unable to reasonably estimate the specific extent, or duration, of the impact of the COVID-19 outbreak on our financial and operating results. We are also unable to predict how the outbreak will continue to affect restrictions and advisories on elective procedures and therapies, the availability of physicians and/or their treatment prioritizations or the impact of the outbreak on the overall healthcare infrastructure. In addition to an impact on procedure volumes, we are experiencing and may experience other disruptions as a result of the COVID-19 outbreak. For example, it is possible our suppliers will incur challenges supplying the materials needed for the manufacture of our product. In addition, our clinical trials may be adversely affected. Other disruptions or potential disruptions include restrictions on the ability of Company personnel to travel and access customers for training and case support; delays in approvals by regulatory bodies; delays in product development efforts; and additional government requirements to "shelter at home" or other incremental mitigation efforts that may further impact our capacity to manufacture, sell and support the use of our products. The total impact of these disruptions could have a material impact on the Company's financial condition, cash flows and results of operations.

    Statement Regarding Use of Non-GAAP Financial Measures

    To supplement the consolidated financial results prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), the Company uses certain non-GAAP historical financial measures. Management makes adjustments to the GAAP measures for items (both charges and gains) that (a) do not reflect the core operational activities of the Company, (b) are commonly adjusted within the Company's industry to enhance comparability of the Company's financial results with those of its peer group, or (c) are inconsistent in amount or frequency between periods (albeit such items are monitored and controlled with equal diligence relative to core operations). The Company uses the term "Non-GAAP" to exclude intellectual property litigation income and expenses, amortization of intangible assets, fair value adjustments to contingent consideration liabilities arising from acquisitions, costs and expenses associated with acquisitions and integration, costs associated with enterprise system upgrades, certain inventory write-off charges, in-process R&D charges, amortization of debt discount and associated issuance costs related to the company's convertible senior debt offering, significant discrete income tax adjustments related to transactions as well as changes in estimated acquisition-date tax effects associated with business combinations, and the impact from implementation of tax law changes and settlements. See "GAAP to Non-GAAP Reconciliations" for a reconciliation of each non-GAAP measure presented to the comparable GAAP financial measure.

    GLAUKOS CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (unaudited)
    (in thousands, except per share amounts)
     
     

    Three Months Ended

     

    Six Months Ended

    June 30,

     

    June, 30

     

     

     

     

     

     

     

    2020

     

    2019

     

    2020

     

    2019

    Net sales

    $

    31,558

     

     

    $

    58,600

     

     

    $

    86,894

     

     

    $

    112,626

     

    Cost of sales

     

    21,668

     

     

     

    7,870

     

     

     

    54,197

     

     

     

    14,981

     

    Gross profit

     

    9,890

     

     

     

    50,730

     

     

     

    32,697

     

     

     

    97,645

     

    Operating expenses:

     

     

     

     

     

     

     

    Selling, general and administrative

     

    38,116

     

     

     

    37,656

     

     

     

    88,662

     

     

     

    72,581

     

    Research and development

     

    18,971

     

     

     

    17,069

     

     

     

    43,844

     

     

     

    30,999

     

    In-process research and development

     

    -

     

     

     

    2,245

     

     

     

    -

     

     

     

    2,245

     

    Total operating expenses

     

    57,087

     

     

     

    56,970

     

     

     

    132,506

     

     

     

    105,825

     

    Loss from operations

     

    (47,197

    )

     

     

    (6,240

    )

     

     

    (99,809

    )

     

     

    (8,180

    )

    Non-operating income (expense):

     

     

     

     

     

     

     

    Interest income

     

    590

     

     

     

    800

     

     

     

    1,286

     

     

     

    1,588

     

    Interest expense

     

    (3,090

    )

     

     

    (1,013

    )

     

     

    (3,971

    )

     

     

    (1,013

    )

    Other income, net

     

    2,419

     

     

     

    216

     

     

     

    708

     

     

     

    148

     

    Total non-operating (expense) income

     

    (81

    )

     

     

    3

     

     

     

    (1,977

    )

     

     

    723

     

    Loss before taxes

     

    (47,278

    )

     

     

    (6,237

    )

     

     

    (101,786

    )

     

     

    (7,457

    )

    Income tax (benefit) provision

     

    (7,384

    )

     

     

    72

     

     

     

    (7,834

    )

     

     

    194

     

    Net loss

    $

    (39,894

    )

     

    $

    (6,309

    )

     

    $

    (93,952

    )

     

    $

    (7,651

    )

     

     

     

     

     

     

     

    Basic and diluted net loss per share

    $

    (0.90

    )

     

    $

    (0.17

    )

     

    $

    (2.13

    )

     

    $

    (0.21

    )

     

     

     

     

     

     

     

    Weighted average shares used to compute basic and diluted net loss per share

     

    44,335

     

     

     

    36,470

     

     

     

    44,078

     

     

     

    36,338

     

    GLAUKOS CORPORATION
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands, except par values)
     
    June 30, December 31,

    2020

    2019

    (unaudited)
    Assets
    Current assets:
    Cash and cash equivalents

    $

    266,974

     

     

    $

    62,430

     

    Short-term investments

     

    127,966

     

     

     

    111,553

     

    Accounts receivable, net

     

    26,730

     

     

     

    38,417

     

    Inventory, net

     

    21,088

     

     

     

    42,578

     

    Prepaid expenses and other current assets

     

    10,464

     

     

     

    7,900

     

    Total current assets

     

    453,222

     

     

     

    262,878

     

    Restricted cash

     

    9,326

     

     

     

    9,326

     

    Property and equipment, net

     

    23,210

     

     

     

    22,056

     

    Operating lease right-of-use asset

     

    14,328

     

     

     

    15,704

     

    Finance lease right-of-use asset

     

    52,833

     

     

     

    54,048

     

    Intangible assets, net

     

    370,149

     

     

     

    382,605

     

    Goodwill

     

    66,134

     

     

     

    66,134

     

    Deposits and other assets

     

    6,531

     

     

     

    5,649

     

    Total assets

    $

    995,733

     

     

    $

    818,400

     

     

     

     

    Liabilities and stockholders' equity

     

     

     

    Current liabilities:

     

     

     

    Accounts payable

    $

    9,233

     

     

    $

    5,781

     

    Accrued liabilities

     

    45,598

     

     

     

    51,919

     

    Total current liabilities

     

    54,831

     

     

     

    57,700

     

    Long-term debt

     

    183,999

     

     

     

    -

     

    Operating lease liability

     

    13,305

     

     

     

    14,195

     

    Finance lease liability

     

    60,435

     

     

     

    58,435

     

    Deferred tax liability, net

     

    15,250

     

     

     

    9,632

     

    Other liabilities

     

    5,489

     

     

     

    5,166

     

    Total liabilities

     

    333,309

     

     

     

    145,128

     

     

     

     

    Stockholders' equity:

     

     

     

    Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued and outstanding

     

    -

     

     

     

    -

     

    Common stock, $0.001 par value; 150,000 shares authorized; 44,578 and 43,530 shares issued and 44,550 and 43,502 shares outstanding as of June 30, 2020 and December 31, 2019, respectively

     

    45

     

     

     

    44

     

    Additional paid-in capital

     

    943,706

     

     

     

    861,740

     

    Accumulated other comprehensive income

     

    2,467

     

     

     

    1,330

     

    Accumulated deficit

     

    (283,662

    )

     

     

    (189,710

    )

    Less treasury stock (28 shares as of June 30, 2020 and December 31, 2019)

     

    (132

    )

     

     

    (132

    )

    Total stockholders' equity

     

    662,424

     

     

     

    673,272

     

    Total liabilities and stockholders' equity

    $

    995,733

     

     

    $

    818,400

     

    GLAUKOS CORPORATION
    GAAP to Non-GAAP Reconciliations
    (in thousands, except per share amounts)
    (Unaudited)
     
     
    Q2 2020 Q2 2019
     
    GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP
    Cost of sales

    $

    21,668

     

     

    $

    (14,785

    )

    (a)(b)(e)

    $

    6,883

     

     

    $

    7,870

     

     

    -

     

    $

    7,870

     

     

     

     

     

     

     

     

     

    Gross profit

    $

    9,890

     

     

    $

    14,785

     

    $

    24,675

     

     

    $

    50,730

     

     

    -

     

    $

    50,730

     

     

     

     

     

     

     

     

     

    Operating expenses:

     

     

     

     

     

     

     

     

    Selling, general and administrative

    $

    38,116

     

     

    $

    (4,473

    )

    (c)(d)(e)

    $

    33,643

     

     

    $

    37,656

     

    $

    (4,653

    )

    (h)(i)

    $

    33,003

     

     

     

     

     

     

     

     

     

    Research and development

    $

    18,971

     

     

    $

    (338

    )

    (e)

    $

    18,633

     

     

    $

    17,069

     

     

    -

     

    $

    17,069

     

     

     

     

     

     

     

     

     

    In-process research and development

     

    -

     

     

     

    -

     

     

    -

     

     

     

    2,245

     

     

    (2,245

    )

    (j)

     

    -

     

     

     

     

     

     

     

     

     

    Total operating expenses

    $

    57,087

     

     

    $

    (4,811

    )

    $

    52,276

     

     

    $

    56,970

     

    $

    (6,898

    )

    $

    50,072

     

     

     

     

     

     

     

     

     

    (Loss) income from operations

    $

    (47,197

    )

     

    $

    19,596

     

    $

    (27,601

    )

     

    $

    (6,240

    )

    $

    6,898

     

    $

    658

     

     

     

     

     

     

     

     

     

    Non-operating income (expense):

     

     

     

     

     

     

     

     

    Interest expense

     

    (3,090

    )

     

     

    557

     

    (f)

     

    (2,533

    )

     

     

    (1,013

    )

     

    -

     

     

    (1,013

    )

     

     

     

     

     

     

     

     

    Total non-operating (expense) income

     

    (81

    )

     

     

    557

     

     

    476

     

     

     

    3

     

     

    -

     

     

    3

     

     

     

     

     

     

     

     

     

    Income tax (benefit) provision

     

    (7,384

    )

     

     

    7,256

     

    (g)

     

    (128

    )

     

     

    72

     

     

    -

     

     

    72

     

     

     

     

     

     

     

     

     

    Net (loss) income

    $

    (39,894

    )

     

    $

    12,897

     

    (k)

    $

    (26,997

    )

     

    $

    (6,309

    )

    $

    6,898

     

    (k)

    $

    589

     

     

     

     

     

     

     

     

     

    Diluted net (loss) income per share

    $

    (0.90

    )

     

     

    $

    (0.61

    )

     

    $

    (0.17

    )

     

    $

    0.01

     

    (a) Cost of sales adjustments related to the inventory fair value step up and amortization of developed technology intangible assets from the Avedro, Inc. acquisition in the amount of $9.7 million and $5.5 million, respectively.
    (b) Reversal of COVID-19 related excess and obsolete reserves relating to the associated fair-value step up of acquired Avedro inventory, totaling ($0.5) million.
    (c) Expenses related to the Company's patent infringement litigation and related matters, consisting of $1.7 million.
    (d) Costs of $0.2 million associated with the Company's implementation of its new enterprise systems and other technology optimizations.
    (e) Expenses related to the Avedro, Inc. acquisition:
    • Amortization expense of customer relationship intangible assets in the amount of $0.7 million in selling, general and administrative.
    • Stock-based compensation expense related to replacement awards in the amount of $0.1 million in cost of sales, $1.9 million in selling, general and administrative and $0.3 million in research and development.
    (f) Non-cash interest expense for the amortization of debt discount and associated issuance costs related to the convertible senior notes.
    (g) Tax benefit related to the Company's issuance of the convertible senior notes.
    (h) Expenses related to the Company's patent infringement litigation and related matters of $2.2 million.
    (i) Costs of $2.5 million associated with the Company's implementation of its new enterprise systems and other technology optimizations.
    (j) In-process research and development charge related to the Company's acquisition of DOSE Medical Corporation.
    (k) Includes total tax effect for non-GAAP pre-tax adjustments. For non-GAAP adjustments associated with the U.S., the tax effect is $0 given the Company's U.S. taxable loss positions in both 2020 and 2019.
    GLAUKOS CORPORATION
    GAAP to Non-GAAP Reconciliations
    (in thousands, except per share amounts)
    (Unaudited)
     
    Year-to-Date Q2 2020 Year-to-Date Q2 2019
     
    GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP
    Cost of sales

    $

    54,197

     

     

    $

    (38,224

    )

    (a)(b)(f)

    $

    15,973

     

     

    $

    14,981

     

     

     

    -

     

    $

    14,981

     

     

     

     

     

     

     

     

     

     

    Gross profit

    $

    32,697

     

     

    $

    38,224

     

    $

    70,921

     

     

    $

    97,645

     

     

     

    -

     

    $

    97,645

     

     

     

     

     

     

     

     

     

     

    Operating expenses:

     

     

     

     

     

     

     

     

     

    Selling, general and administrative

    $

    88,662

     

     

    $

    (13,920

    )

    (c)(d)(e)(f)

    $

    74,742

     

     

    $

    72,581

     

     

    $

    (7,724

    )

    (h)(i)

    $

    64,857

     

     

     

     

     

     

     

     

     

     

    Research and development

    $

    43,844

     

     

    $

    (2,308

    )

    (c)(f)

    $

    41,536

     

     

    $

    30,999

     

     

     

    -

     

    $

    30,999

     

     

     

     

     

     

     

     

     

     

    In-process research and development

     

    -

     

     

     

    -

     

     

    -

     

     

     

    2,245

     

     

     

    (2,245

    )

    (j)

     

    -

     

     

     

     

     

     

     

     

     

     

    Total operating expenses

    $

    132,506

     

     

    $

    (16,228

    )

    $

    116,278

     

     

    $

    105,825

     

     

    $

    (9,969

    )

    $

    95,856

     

     

     

     

     

     

     

     

     

     

    (Loss) income from operations

    $

    (99,809

    )

     

    $

    54,452

     

    $

    (45,357

    )

     

    $

    (8,180

    )

     

    $

    9,969

     

    $

    1,789

     

     

     

     

     

     

     

     

     

     

    Non-operating income (expense):

     

     

     

     

     

     

     

     

     

    Interest expense

     

    (3,971

    )

     

     

    557

     

     

    (3,414

    )

     

     

    (1,013

    )

     

     

    -

     

     

    (1,013

    )

    Total non-operating (expense) income

     

    (1,977

    )

     

     

    557

     

    (g)

     

    (1,420

    )

     

     

    723

     

     

     

    -

     

     

    723

     

     

     

     

     

     

     

     

     

     

    (Loss) income before taxes

     

    (101,786

    )

     

     

    55,009

     

     

    (46,777

    )

     

     

    (7,457

    )

     

     

    9,969

     

     

    2,512

     

     

     

     

     

     

     

     

     

     

    Income tax (benefit) provision

     

    (7,834

    )

     

     

    7,256

     

    (k)

     

    (578

    )

     

     

    194

     

     

     

    -

     

     

    194

     

     

     

     

     

     

     

     

     

     

    Net (loss) income

    $

    (93,952

    )

     

    $

    47,753

     

    (l)

    $

    (46,199

    )

     

    $

    (7,651

    )

     

    $

    9,969

     

    (l)

    $

    2,318

     

     

     

     

     

     

     

     

     

     

    Diluted net (loss) income per share

    $

    (2.13

    )

     

     

    $

    (1.05

    )

     

    $

    (0.21

    )

     

     

    $

    0.06

     

    (a)   Cost of sales adjustments related to the inventory fair value step up and amortization of developed technology intangible assets from the Avedro, Inc. acquisition in the amount of $19.3 million and $11.0 million, respectively.
    (b)   Inventory write-off charges and COVID-19 related excess and obsolete reserves, a portion of which includes the associated fair-value step up of acquired Avedro inventory, totaling $7.4 million.
    (c)   Restructuring expenses of $0.2 million in selling, general and administrative and $0.1 million in research and development.
    (d)   Expenses related to the Company's patent infringement litigation and related matters, consisting of $4.2 million.
    (e)   Costs of $0.7 million associated with the Company's implementation of its new enterprise systems and other technology optimizations.
    (f)   Expenses related to the Avedro, Inc. acquisition:
      • Integration expenses of $0.8 million consisting primarily of legal fees, accounting fees and other costs in selling, general and administrative.
      • Restructuring expenses of $0.2 million in cost of sales, $0.5 million in selling, general and administrative and $0.1 million in research and development.
      • Amortization expense of customer relationship intangible assets in the amount of $1.4 million in selling, general and administrative.
      • Stock-based compensation expense related to replacement awards in the amount of $0.3 million in cost of sales, $6.1 million in selling, general and administrative and $2.1 million in research and development.
    (g)   Non-cash interest expense for the amortization of debt discount and associated issuance costs related to the convertible senior notes.
    (h)   Expenses related to the Company's patent infringement litigation and related matters of $3.8 million.
    (i)   Costs of $3.9 million associated with the Company's implementation of its new enterprise systems and other technology optimizations.
    (j)   In-process research and development charge related to the Company's acquisition of DOSE Medical Corporation.
    (k)   Tax benefit related to the Company's issuance of the convertible senior notes.
    (l)   Includes total tax effect for non-GAAP pre-tax adjustments. For non-GAAP adjustments associated with the U.S., the tax effect is $0 given the Company's U.S. taxable loss positions in both 2020 and 2019.

     

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  2. Conference Call and Webcast Scheduled for 1:30 p.m. PDT

    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, plans to release second quarter 2020 financial results after the market close on Thursday, August 6, 2020. The company's management will discuss the results during a conference call and simultaneous webcast at 1:30 p.m. PDT (4:30 p.m. EDT) on August 6, 2020.

    A link to the live webcast will be available on the company's website at http://investors.glaukos.com. To participate in the conference call, please dial 866-324-3683 (U.S.) or 509-844-0959 (International) and enter Conference ID 4185965. A…

    Conference Call and Webcast Scheduled for 1:30 p.m. PDT

    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, plans to release second quarter 2020 financial results after the market close on Thursday, August 6, 2020. The company's management will discuss the results during a conference call and simultaneous webcast at 1:30 p.m. PDT (4:30 p.m. EDT) on August 6, 2020.

    A link to the live webcast will be available on the company's website at http://investors.glaukos.com. To participate in the conference call, please dial 866-324-3683 (U.S.) or 509-844-0959 (International) and enter Conference ID 4185965. A replay will be archived on the company's website following completion of the call.

    About Glaukos

    Glaukos (www.glaukos.com) is an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases. The company pioneered Micro-Invasive Glaucoma Surgery, or MIGS, to revolutionize the traditional glaucoma treatment and management paradigm. Glaukos launched the iStent®, its first MIGS device, in the United States in July 2012 and launched its next-generation iStent inject® device in the United States in September 2018. In corneal health, Glaukos' proprietary suite of single-use, bio-activated pharmaceuticals are designed to strengthen, stabilize and reshape the cornea through a process called corneal collagen cross-linking to treat corneal ectatic disorders and correct refractive conditions. Glaukos is leveraging its platform technology to build a comprehensive and proprietary portfolio of micro-scale surgical and pharmaceutical therapies in glaucoma, corneal health and retinal disease.

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  3. 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 that in light of the company's offering of its 2.75% Convertible Senior Notes due 2027, which is expected to close on June 11, 2020, subject to customary closing conditions, management will no longer be participating in its previously announced virtual fireside presentation and associated webcast at the William Blair 40th Annual Growth Stock Conference, previously scheduled for Wednesday, June 10, 2020, at 3:20 p.m. CDT. Management will continue to participate in the conference's other investor forums.

    About Glaukos

    Glaukos (www.glaukos.com

    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 that in light of the company's offering of its 2.75% Convertible Senior Notes due 2027, which is expected to close on June 11, 2020, subject to customary closing conditions, management will no longer be participating in its previously announced virtual fireside presentation and associated webcast at the William Blair 40th Annual Growth Stock Conference, previously scheduled for Wednesday, June 10, 2020, at 3:20 p.m. CDT. Management will continue to participate in the conference's other investor forums.

    About Glaukos

    Glaukos (www.glaukos.com) is an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases. The company pioneered Micro-Invasive Glaucoma Surgery, or MIGS, to revolutionize the traditional glaucoma treatment and management paradigm. Glaukos launched the iStent®, its first MIGS device, in the United States in July 2012 and launched its next-generation iStent inject® device in the United States in September 2018. In corneal health, Glaukos' proprietary suite of single-use, bio-activated pharmaceuticals are designed to strengthen, stabilize and reshape the cornea through a process called corneal collagen cross-linking to treat corneal ectatic disorders and correct refractive conditions. Glaukos is leveraging its platform technology to build a comprehensive and proprietary portfolio of micro-scale surgical and pharmaceutical therapies in glaucoma, corneal health and retinal disease.

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  4. Glaukos Corporation (NYSE:GKOS) (the "Company" or "Glaukos"), an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases, announced today the pricing of its private offering of $250 million aggregate principal amount of 2.75% Convertible Senior Notes due 2027 (the "notes"). The offering size was increased from the previously announced offering size of $200 million aggregate principal amount of notes. The notes were offered only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). Glaukos has granted to the initial purchasers of the notes a 13-day option to purchase up…

    Glaukos Corporation (NYSE:GKOS) (the "Company" or "Glaukos"), an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases, announced today the pricing of its private offering of $250 million aggregate principal amount of 2.75% Convertible Senior Notes due 2027 (the "notes"). The offering size was increased from the previously announced offering size of $200 million aggregate principal amount of notes. The notes were offered only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). Glaukos has granted to the initial purchasers of the notes a 13-day option to purchase up to an additional $37.5 million aggregate principal amount of notes. The offering of the notes is expected to close on June 11, 2020, subject to customary closing conditions.

    The notes will be Glaukos' senior unsecured obligations. The notes will bear interest at a rate of 2.75% per year, payable semiannually in arrears on June 15 and December 15 of each year, beginning on December 15, 2020. The notes will mature on June 15, 2027, unless earlier converted, redeemed or repurchased. Glaukos may not redeem the notes prior to June 20, 2024. On or after June 20, 2024 but before the 45th scheduled trading day immediately preceding the maturity date, Glaukos may redeem for cash all or a portion of the notes if the last reported sale price of Glaukos' common stock has been at least 130% of the conversion price then in effect on (i) each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date Glaukos provides notice of redemption and (ii) the trading day immediately preceding the date Glaukos provides such notice. The initial conversion rate for the notes is 17.8269 shares of Glaukos' common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $56.10 per share of Glaukos' common stock), which represents an approximately 30.0% conversion premium over the last reported sale price of $43.15 per share of Glaukos' common stock on The New York Stock Exchange on June 8, 2020.

    Prior to March 15, 2027, the notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Glaukos will satisfy any conversion election by paying or delivering, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at its election. Holders of the notes will have the right to require Glaukos to repurchase all or a portion of their notes at 100% of their principal amount, plus any accrued and unpaid interest, upon the occurrence of certain events.

    Glaukos estimates that the net proceeds from this offering will be approximately $241.3 million (or $277.6 million if the initial purchasers exercise in full their option to purchase additional notes), after deducting fees and estimated offering expenses payable by Glaukos. Glaukos intends to use the net proceeds from the offering to pay the approximately $31.0 million cost of the capped call transactions described below and the remainder for working capital and general corporate purposes. If the initial purchasers exercise their option to purchase additional notes, Glaukos expects to use a portion of the related net proceeds to enter into additional capped call transactions and any remainder for working capital and general corporate purposes.

    In connection with the pricing of the notes, Glaukos entered into privately negotiated capped call transactions with one or more of the initial purchasers and/or their affiliates and/or other financial institutions (the "option counterparties"). The capped call transactions cover, subject to customary adjustments, the number of shares of common stock initially underlying the notes. The capped call transactions are expected generally to reduce potential dilution to Glaukos' common stock upon any conversion of notes or at Glaukos' election (subject to certain conditions) offset any cash payments Glaukos is required to make in excess of the aggregate principal amount of converted notes, as the case may be, with such reduction or offset subject to a cap. The cap price of the capped call transactions will initially be $86.30, which represents a premium of 100% over the last reported sale price of Glaukos' common stock of $43.15 per share on June 8, 2020, and is subject to certain adjustments under the terms of the capped call transactions. If the initial purchasers exercise their option to purchase additional notes, Glaukos expects to enter into additional capped call transactions with the option counterparties.

    In connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates expect to purchase shares of Glaukos' common stock and/or enter into various derivative transactions with respect to Glaukos' common stock concurrently with or shortly after the pricing of the notes. This activity could increase (or reduce the size of any decrease in) the market price of Glaukos' common stock or the notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Glaukos' common stock and/or purchasing or selling Glaukos' common stock or other securities issued by Glaukos in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so on each exercise date of the capped call transactions, which are expected to occur during the 40 trading day period beginning on the 41st scheduled trading day prior to the maturity date of the notes, or following any termination of any portion of the capped call transactions in connection with any repurchase, redemption or early conversion of the notes). This activity could also cause or avoid an increase or a decrease in the market price of Glaukos' common stock or the notes, which could affect a noteholder's ability to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of notes, it could affect the number of shares and value of the consideration that a noteholder will receive upon conversion of the notes.

    In addition, if any such capped call transaction fails to become effective, whether or not this offering of notes is completed, the option counterparty party thereto may unwind its hedge positions with respect to Glaukos' common stock, which could adversely affect the value of Glaukos' common stock and, if the notes have been issued, the value of the notes.

    The notes and shares of Glaukos' common stock issuable upon conversion, if any, have not been registered under the Securities Act, or under any U.S. state securities laws or other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

    This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. The offering of the notes is being made only to qualified institutional buyers by means of a private offering memorandum in accordance with Rule 144A under the Securities Act.

    About Glaukos

    Glaukos is an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases. The company pioneered Micro-Invasive Glaucoma Surgery, or MIGS, to revolutionize the traditional glaucoma treatment and management paradigm. Glaukos launched the iStent®, its first MIGS device, in the United States in July 2012 and launched its next-generation iStent inject® device in the United States in September 2018. In corneal health, Glaukos' proprietary suite of single-use, bio-activated pharmaceuticals are designed to strengthen, stabilize and reshape the cornea through a process called corneal collagen cross-linking to treat corneal ectatic disorders and correct refractive conditions. Glaukos is leveraging its platform technology to build a comprehensive and proprietary portfolio of micro-scale surgical and pharmaceutical therapies in glaucoma, corneal health and retinal disease.

    Cautions Regarding Forward-Looking Statements

    This communication contains "forward-looking statements" within the meaning of federal securities laws including, but are not limited to, statements concerning the completion of the proposed offering and the anticipated use of the net proceeds from the offering. All statements other than statements of historical facts included in this press release that address activities, events or developments that Glaukos expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on management's current expectations, assumptions, estimates and beliefs. Although Glaukos believes that it has a reasonable basis for forward-looking statements contained herein, it cautions you that they are based on current expectations about future events affecting Glaukos and are subject to risks, uncertainties and factors relating to its operations and business environment. These and other known risks, uncertainties and factors are described in detail under the caption "Risk Factors" and elsewhere in Glaukos' filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, which was filed with the SEC on May 7, 2020. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance on the forward-looking statements in this press release, which speak only as of the date hereof. Glaukos does not undertake any obligation to update, amend or clarify these forward-looking statements whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.

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  5. Glaukos Corporation (NYSE:GKOS) (the "Company" or "Glaukos"), an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases, announced today that it intends to offer, subject to market and other conditions, $200 million aggregate principal amount of Convertible Senior Notes due 2027 (the "notes") in a private offering. The notes will be offered only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). Glaukos expects to grant to the initial purchasers of the notes a 13-day option to purchase up to an additional $30 million aggregate principal amount of the notes.

    Glaukos…

    Glaukos Corporation (NYSE:GKOS) (the "Company" or "Glaukos"), an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases, announced today that it intends to offer, subject to market and other conditions, $200 million aggregate principal amount of Convertible Senior Notes due 2027 (the "notes") in a private offering. The notes will be offered only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). Glaukos expects to grant to the initial purchasers of the notes a 13-day option to purchase up to an additional $30 million aggregate principal amount of the notes.

    Glaukos intends to use the net proceeds from the offering to pay the cost of the capped call transactions described below and the remainder for working capital and general corporate purposes. If the initial purchasers exercise their option to purchase additional notes, Glaukos expects to use a portion of the related net proceeds to enter into additional capped call transactions and any remainder for working capital and general corporate purposes.

    The notes will be Glaukos' senior unsecured obligations. The notes will mature on June 15, 2027, unless earlier converted, redeemed or repurchased. Glaukos may not redeem the notes prior to June 20, 2024. On or after June 20, 2024 but before the 45th scheduled trading day immediately preceding the maturity date, Glaukos may redeem for cash all or a portion of the notes if the last reported sale price of Glaukos' common stock has been at least 130% of the conversion price then in effect on (i) each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date Glaukos provides notice of redemption and (ii) the trading day immediately preceding the date Glaukos provides such notice. Prior to March 15, 2027, the notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Glaukos will satisfy any conversion elections by paying or delivering, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at its election. The interest rate on, the initial conversion rate of, and other terms of the notes will be determined by negotiations between Glaukos and the initial purchasers of the notes. Holders of the notes will have the right to require Glaukos to repurchase all or a portion of their notes at 100% of their principal amount, plus any accrued and unpaid interest, upon the occurrence of certain events.

    In connection with the pricing of the notes, Glaukos expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers and/or their respective affiliates and/or other financial institutions (the "option counterparties"). The capped call transactions cover, subject to customary adjustments, the number of shares of common stock initially underlying the notes. The capped call transactions are expected generally to reduce potential dilution to Glaukos' common stock upon any conversion of notes or at Glaukos' election (subject to certain conditions) offset any cash payments Glaukos is required to make in excess of the aggregate principal amount of converted notes, as the case may be, with such reduction or offset subject to a cap.

    In connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates expect to purchase shares of Glaukos' common stock and/or enter into various derivative transactions with respect to Glaukos' common stock concurrently with or shortly after the pricing of the notes. This activity could increase (or reduce the size of any decrease in) the market price of Glaukos' common stock or the notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Glaukos' common stock and/or purchasing or selling Glaukos' common stock or other securities issued by Glaukos in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so on each exercise date of the capped call transactions, which are expected to occur during the 40 trading day period beginning on the 41st scheduled trading day prior to the maturity date of the notes, or following any termination of any portion of the capped call transactions in connection with any repurchase, redemption or early conversion of the notes). This activity could also cause or avoid an increase or a decrease in the market price of Glaukos' common stock or the notes, which could affect a noteholder's ability to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of notes, it could affect the number of shares and value of the consideration that a noteholder will receive upon conversion of the notes.

    In addition, if any such capped call transaction fails to become effective, whether or not this offering of notes is completed, the option counterparty party thereto may unwind its hedge positions with respect to Glaukos' common stock, which could adversely affect the value of Glaukos' common stock and, if the notes have been issued, the value of the notes.

    The notes and shares of Glaukos' common stock issuable upon conversion, if any, have not been registered under the Securities Act, or under any U.S. state securities laws or other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

    This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. Any offers of the notes will be made only to qualified institutional buyers by means of a private offering memorandum in accordance with Rule 144A under the Securities Act.

    About Glaukos

    Glaukos is an ophthalmic medical technology and pharmaceutical company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases. The company pioneered Micro-Invasive Glaucoma Surgery, or MIGS, to revolutionize the traditional glaucoma treatment and management paradigm. Glaukos launched the iStent®, its first MIGS device, in the United States in July 2012 and launched its next-generation iStent inject® device in the United States in September 2018. In corneal health, Glaukos' proprietary suite of single-use, bio-activated pharmaceuticals are designed to strengthen, stabilize and reshape the cornea through a process called corneal collagen cross-linking to treat corneal ectatic disorders and correct refractive conditions. Glaukos is leveraging its platform technology to build a comprehensive and proprietary portfolio of micro-scale surgical and pharmaceutical therapies in glaucoma, corneal health and retinal disease.

    Cautions regarding Forward-Looking Statements

    This communication contains "forward-looking statements" within the meaning of federal securities laws including, but are not limited to, statements concerning the proposed terms of the notes and the capped call transactions, the completion, timing and size of the proposed offering, and the anticipated use of the net proceeds from the offering. All statements other than statements of historical facts included in this press release that address activities, events or developments that Glaukos expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on management's current expectations, assumptions, estimates and beliefs. Although Glaukos believes that it has a reasonable basis for forward-looking statements contained herein, it cautions you that they are based on current expectations about future events affecting Glaukos and are subject to risks, uncertainties and factors relating to its operations and business environment. These and other known risks, uncertainties and factors are described in detail under the caption "Risk Factors" and elsewhere in Glaukos' filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, which was filed with the SEC on May 7, 2020. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance on the forward-looking statements in this press release, which speak only as of the date hereof. Glaukos does not undertake any obligation to update, amend or clarify these forward-looking statements whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.

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