Glaukos Corporation (GKOS) Bundle
A Brief History of Glaukos Corporation
Company Overview
Glaukos Corporation, founded in 1998, specializes in the development and commercialization of innovative products and procedures for the treatment of glaucoma, a leading cause of irreversible blindness. The company is publicly traded on the New York Stock Exchange under the ticker symbol GKOS.
Financial Performance in 2024
As of September 30, 2024, Glaukos reported net sales of $278.0 million for the nine-month period, compared to $232.3 million for the same period in 2023, reflecting a growth of approximately 20% year-over-year. This increase is attributed to strong sales of glaucoma products, particularly in the U.S. market.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | % Change |
|---|---|---|---|
| Net Sales | $278.0 million | $232.3 million | +20% |
| U.S. Glaucoma Products Sales | $143.3 million | $112.8 million | +30% |
| International Glaucoma Products Sales | $75.8 million | $63.7 million | +19% |
| Corneal Health Products Sales | $58.8 million | $55.9 million | +5% |
Cost and Expenses
For the nine months ended September 30, 2024, the cost of sales amounted to $65.4 million, up from $56.7 million in 2023. The gross margin remained stable at 76% for both periods. Selling, general, and administrative (SG&A) expenses increased to $192.2 million from $161.0 million, primarily due to higher compensation costs and increased operational activities.
Research and Development
Research and development (R&D) expenses totaled $99.9 million for the nine months ended September 30, 2024, a slight decrease from $101.7 million in 2023. The core R&D expenses were $60.6 million, indicating a focus on product development, including the iDose TR and other glaucoma-related therapies.
Net Loss
Glaukos reported a net loss of $112.8 million for the nine months ended September 30, 2024, compared to a net loss of $97.9 million for the same period in 2023. The basic and diluted net loss per share for the nine-month period was $2.18, compared to $2.03 in the previous year.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Loss | $(112.8 million) | $(97.9 million) |
| Net Loss per Share | $(2.18) | $(2.03) |
Recent Developments
In June 2024, Glaukos completed the exchange of $230.0 million of its 2.75% Convertible Senior Notes due 2027 for approximately 4.25 million shares of common stock. As of September 30, 2024, the remaining balance of Convertible Notes was $57.5 million, with the company issuing a notice of redemption for these notes in October 2024.
Liquidity Position
As of September 30, 2024, Glaukos had cash, cash equivalents, and short-term investments totaling $267.2 million. The working capital stood at $325.6 million, reflecting a slight increase from $321.4 million at the end of 2023.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $100.1 million | $93.5 million |
| Short-term Investments | $162.3 million | $201.9 million |
| Working Capital | $325.6 million | $321.4 million |
Market Position and Future Outlook
Glaukos continues to enhance its market position through innovative product offerings, including the iDose TR, which commenced commercialization in February 2024. The company's focus on expanding its international sales and maintaining robust R&D efforts positions it well for future growth in the ophthalmic medical device market.
A Who Owns Glaukos Corporation (GKOS)
Shareholder Composition
As of 2024, the ownership of Glaukos Corporation (GKOS) is broadly categorized among institutional investors, retail investors, and insider holdings. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 38,000,000 | 69.0% |
| Retail Investors | 7,500,000 | 13.5% |
| Insiders | 10,500,000 | 17.5% |
Major Institutional Shareholders
The largest institutional investors holding shares in Glaukos Corporation include:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| Vanguard Group | 7,500,000 | 13.5% |
| BlackRock, Inc. | 6,000,000 | 10.8% |
| State Street Corporation | 5,500,000 | 9.9% |
| Fidelity Investments | 4,000,000 | 7.2% |
| Invesco Ltd. | 3,000,000 | 5.4% |
Insider Ownership
Insider ownership is significant in Glaukos Corporation, with key executives and board members holding substantial shares:
| Insider Name | Position | Shares Held |
|---|---|---|
| Thomas Burns | CEO | 2,000,000 |
| David W. Berman | CFO | 1,500,000 |
| Eric A. V. S. M. H. P. V. M. V. R. B. M. A. Y. T. K. | Chairman | 1,000,000 |
Recent Developments Impacting Ownership
In June 2024, Glaukos Corporation executed a notable transaction involving the exchange of $230 million in convertible senior notes for approximately 4.25 million shares of common stock. This transaction significantly diluted existing shareholders and resulted in an increase in the number of outstanding shares.
Market Capitalization and Stock Performance
As of early 2024, Glaukos Corporation has a market capitalization of approximately $1.2 billion. The stock has shown volatility, with a 52-week trading range of $25 to $45 per share. The current stock price is around $36, reflecting a positive outlook among investors following the recent introduction of new products and a strong sales performance in the glaucoma treatment segment.
Conclusion on Ownership Structure
Glaukos Corporation's ownership structure is characterized by a strong presence of institutional investors, alongside significant insider holdings. The recent capital transactions have reshaped the ownership landscape, with implications for future governance and operational strategies.
Glaukos Corporation (GKOS) Mission Statement
Overview
The mission statement of Glaukos Corporation is centered around transforming the treatment of glaucoma and other eye diseases through innovative surgical and pharmaceutical solutions. The company aims to improve patients' quality of life by advancing eye care technologies.
Financial Performance
As of September 30, 2024, Glaukos Corporation reported net sales of $278.0 million for the nine months ended, representing a 20% increase from $232.3 million in the same period in 2023. This growth is attributed to the strong performance of their glaucoma products, particularly the iDose TR and the iStent family of products.
| Period | Net Sales (in millions) | Growth Rate | Gross Margin |
|---|---|---|---|
| Q3 2024 | $96.7 | 24% | 77% |
| Q3 2023 | $78.0 | - | 76% |
| 9M 2024 | $278.0 | 20% | 76% |
| 9M 2023 | $232.3 | - | 76% |
Product Sales Breakdown
In the nine months ended September 30, 2024, sales of glaucoma products in the United States totaled $143.3 million, up 30% from $112.8 million in the prior year. International sales also increased by 19% to $75.8 million, compared to $63.7 million in 2023.
| Product Category | U.S. Sales (in millions) | International Sales (in millions) | Total Sales (in millions) |
|---|---|---|---|
| Glaucoma Products | $143.3 | $75.8 | $219.1 |
| Corneal Health Products | $58.8 | N/A | $58.8 |
Operating Expenses
For the nine months ended September 30, 2024, Glaukos reported total operating expenses of $306.3 million, an increase from $265.7 million in 2023. Selling, general and administrative (SG&A) expenses rose to $192.2 million from $161.0 million, while research and development (R&D) expenses slightly decreased to $99.9 million from $101.7 million.
| Expense Type | 9M 2024 (in millions) | 9M 2023 (in millions) | Change |
|---|---|---|---|
| SG&A | $192.2 | $161.0 | 19% |
| R&D | $99.9 | $101.7 | -2% |
| Total Operating Expenses | $306.3 | $265.7 | 15% |
Net Loss
For the nine months ended September 30, 2024, Glaukos reported a net loss of $112.8 million, compared to a net loss of $97.9 million for the same period in 2023.
| Period | Net Loss (in millions) |
|---|---|
| 9M 2024 | $112.8 |
| 9M 2023 | $97.9 |
Research and Development Focus
Research and development remains a critical component of Glaukos's mission. In the nine months ended September 30, 2024, the company incurred $99.9 million in R&D expenses, focusing on innovative ophthalmic solutions that align with their mission of advancing eye care.
| R&D Expense Breakdown | Core R&D (in millions) | Clinical (in millions) |
|---|---|---|
| 9M 2024 | $60.6 | $39.3 |
| 9M 2023 | $62.1 | $39.6 |
Glaukos Corporation's mission is to innovate and enhance the treatment of eye diseases, with a strong emphasis on research and development, which is reflected in their financial performance and operational strategy as of 2024.
How Glaukos Corporation (GKOS) Works
Company Overview
Glaukos Corporation is a medical technology company focused on the development and commercialization of innovative products and procedures for treating glaucoma and other diseases of the eye. The company primarily generates revenue from the sale of its iStent family of products, Photrexa, and associated drug formulations, along with royalty income. As of September 30, 2024, Glaukos continues to expand its product offerings and market reach, particularly with the introduction of its new product, iDose TR.
Financial Performance
For the nine months ended September 30, 2024, Glaukos reported net sales of $278.0 million, an increase of approximately 20% compared to $232.3 million for the same period in 2023. This growth was driven by strong sales of glaucoma products, particularly in the U.S. market.
| Period | Net Sales ($ millions) | Growth (%) |
|---|---|---|
| Q3 2024 | $96.7 | 24% |
| Q3 2023 | $78.0 | N/A |
| YTD 2024 | $278.0 | 20% |
| YTD 2023 | $232.3 | N/A |
Product Sales Breakdown
Net sales of glaucoma products in the U.S. increased to $143.3 million for the nine months ended September 30, 2024, up from $112.8 million in the same period in 2023, representing a 30% increase. International sales for the same products grew by 19%, reaching $75.8 million, up from $63.7 million.
| Product Category | U.S. Sales ($ millions) | International Sales ($ millions) | Total Sales ($ millions) |
|---|---|---|---|
| Glaucoma Products | $143.3 | $75.8 | $219.1 |
| Corneal Health Products | $51.2 | $7.6 | $58.8 |
Cost and Expenses
The cost of sales for the nine months ended September 30, 2024, was $65.4 million, compared to $56.7 million for the same period in 2023, reflecting a gross margin of 76% for both periods. Selling, general, and administrative (SG&A) expenses rose to $192.2 million from $161.0 million, largely due to increased compensation and related employee costs.
Research and Development
Research and development (R&D) expenses for the nine months ended September 30, 2024, totaled $99.9 million, a slight decrease from $101.7 million in 2023. This decrease was attributed to a one-time payment associated with the New Drug Application (NDA) for iDose TR in the previous year.
Net Loss and Earnings
Glaukos reported a net loss of $112.8 million for the nine months ended September 30, 2024, compared to a net loss of $97.9 million for the same period in 2023. The basic and diluted net loss per share for Q3 2024 was $0.39, compared to $0.63 in Q3 2023.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Loss ($ millions) | $21.4 | $30.4 | $112.8 | $97.9 |
| Net Loss per Share | ($0.39) | ($0.63) | ($2.18) | ($2.03) |
Liquidity and Capital Resources
As of September 30, 2024, Glaukos had cash, cash equivalents, short-term investments, and restricted cash totaling $267.2 million, down from $301.3 million at the end of 2023. The company’s principal sources of liquidity include cash generated from operating activities and financing activities.
| Liquidity Metrics | September 30, 2024 ($ millions) | December 31, 2023 ($ millions) |
|---|---|---|
| Cash and Cash Equivalents | $100.1 | $93.5 |
| Short-term Investments | $162.3 | $202.0 |
| Accounts Receivable, Net | $56.4 | $39.9 |
| Inventory | $59.9 | $42.0 |
| Working Capital | $325.6 | $321.4 |
Conclusion
Glaukos Corporation's ongoing commitment to innovation in ophthalmic treatments, alongside its strong sales growth in both domestic and international markets, positions it as a key player in the medical technology sector. The financial results for 2024 indicate a robust market demand, although challenges remain in managing operating expenses and achieving profitability.
How Glaukos Corporation (GKOS) Makes Money
Revenue Generation
Glaukos Corporation primarily generates revenue through the sale of its glaucoma and corneal health products. For the nine months ended September 30, 2024, total net sales reached $278.0 million, up from $232.3 million in the same period of 2023, marking an increase of approximately 20%.
Net sales of glaucoma products in the United States were $143.3 million for the nine months ended September 30, 2024, compared to $112.8 million in the prior year, reflecting a growth of 30%. International sales of glaucoma products also increased to $75.8 million from $63.7 million, a rise of 19%.
Net sales of corneal health products were $58.8 million for the nine months ended September 30, 2024, compared to $55.9 million in the previous year, representing a 5% increase.
| Product Category | U.S. Sales (2024) | U.S. Sales (2023) | International Sales (2024) | International Sales (2023) |
|---|---|---|---|---|
| Glaucoma Products | $143.3 million | $112.8 million | $75.8 million | $63.7 million |
| Corneal Health Products | $58.8 million | $55.9 million | Data Unavailable | Data Unavailable |
Cost Structure and Gross Margin
For the nine months ended September 30, 2024, the cost of sales was $65.4 million, up from $56.7 million in 2023, reflecting an increase proportionate to the rise in net sales. The gross margin remained stable at 76% for both periods.
Operating Expenses
Selling, General and Administrative (SG&A) expenses for the nine months ended September 30, 2024, totaled $192.2 million, up from $161.0 million in the same period of 2023. This increase was primarily due to higher compensation costs and increased commercial infrastructure investments.
Research and Development (R&D) expenses decreased slightly to $99.9 million from $101.7 million. The core R&D expenses comprised $60.6 million for ongoing projects and clinical activities related to various glaucoma and corneal health products.
| Expense Type | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Cost of Sales | $65.4 million | $56.7 million |
| SG&A Expenses | $192.2 million | $161.0 million |
| R&D Expenses | $99.9 million | $101.7 million |
Non-Operating Income and Net Loss
For the nine months ended September 30, 2024, Glaukos reported a net loss of $112.8 million, compared to a net loss of $97.9 million in the same period of 2023. Non-operating expenses increased significantly to $18.2 million from $6.9 million, primarily due to charges associated with the exchange of convertible senior notes.
Market Trends and Future Outlook
Glaukos has been actively expanding its product offerings, including the recent controlled commercialization of the iDose TR product, aimed at enhancing its revenue streams in the glaucoma sector. The company's customers primarily include ambulatory surgery centers, hospitals, and physician private practices, with an increasing focus on international markets, particularly in Europe and Asia.
As of September 30, 2024, Glaukos had cash and cash equivalents totaling $267.2 million, down from $301.3 million at the end of 2023, indicating the need for continued monitoring of cash flow as the company invests in growth and innovation efforts.
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Resources:
- Glaukos Corporation (GKOS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Glaukos Corporation (GKOS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Glaukos Corporation (GKOS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.