Welcome to Glycose Corporation First Quarter 2025 Financial Results Conference Call. Copies of the company's press release and quarterly summary document, both issued after the market closed today, are available at www.glycose.com. As a reminder, all lines are muted until the end of today's presentation, but we will have a question and answer session. If you would like to ask a question during that time, press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star, followed by the number one. This call is being recorded, and an archived replay will be made available on the online in the investor relations section of www.glycos.com. I will now turn today's call over to Chris Lewis, Vice President of Investor Relations and Corporate Affairs. Please go ahead.

Thank you, and good afternoon. Joining me today are Glycos Chairman and CEO, Tom Burns. President and COO Joe Gilliam and CFO Alex Thurman. Similar to prior quarters, the company has posted a document on its investor relations website under the financials and filings quarterly results section titled Quarterly Summary. This document is designed to provide the investment community with a summarized and easily accessible reference document that details key facts associated with the quarter, the state of the company's business objectives and strategies and any forward statements or guidance we may make. This document is designed to be read by investors before a regularly scheduled quarterly conference As such for this call, we will make brief prepared remarks and transition into a question and answer session. To ensure ample time and opportunity to address everyone's questions, we request IED limit yourself to one question and one follow-up. If you still have additional questions, you may get back into the queue. Please note that all statements, other than statements of historical facts made on this call that address activities events or developments we expect believe or anticipate will or may occur in the future are forward linking statements these include statements about our plans objectives strategies and prospects regarding among other things our sales products my point technologies and clinical trials us and international commercialization market development efforts the efficacy of our current and future products competitive market position regulatory strategies and reimbursement for our products financial condition and results of operations as well as the expected impact of general macroeconomic conditions including foreign currency fluctuations on our business and operations these subjects these statements 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 therefore they may cause our actual results to differ materially from those expressed or implied by forward linking statements. Review today's press release and our recent SEC filings for more information about these risk factors. You'll find these documents in the investor relations section of our website at www.glaubcoast.com. Finally, please let that turn today's call to also discuss certain non-GAAP financial measures, including results on an adjusted basis. We believe these financial measures can facilitate a more complete analysis and greater transparency in the Glaucus's ongoing results of operations, particularly when when comparing underlying results from period to period. Please refer to the tables and earnings press release available in the Investor List Relations section of our website for a reconciliation of these measures to their most directly comparable gap financial measure. With that, I will throw the call over to Glauco's Chairman and CEO, Tom Burns.

Okay, thank you, Chris. Good afternoon, and thank you all for joining us. Today, Glauco's reported record first quarter consolidated net sales of 106.7 million, 25% on a reported basis, or 26% on a constant currency basis, versus the year ago quarter. We are also reaffirming our full year 2025 net sales guidance range of $475 to $485 million as we balance our first quarter outperformance while continuing to closely monitor the global macroeconomic environment and associated uncertainties. Our first quarter record results reflect the sustained growth acceleration in our business with strong performance driven by IDOS TR adoption and both our U.S. and international glaucoma franchises overall. all. Our continued growth trajectory globally is the result of our ongoing efforts to pioneer and develop the interventional glaucoma or IG marketplace with new standalone therapies designed to slow disease progression and reduce drug burden for the benefit of physicians and patients. These efforts were on full display at the AGS conference in February and more recently at the AS-CRS annual meeting last weekend where the interest and excitement levels for interventional glaucoma and our technologies were high. While we remain in the early stages of these IG efforts, we are encouraged with the increasing levels of clinical interest for this paradigm changing evolution. Within our US glaucoma franchise, we delivered record first quarter net sales of 59.1 million on strong year-over-year growth of 41% driven by growing contributions from IDOSTR, a first-of-its-kind intracameral procedural pharmaceutical that was designed to continuously deliver glaucoma drug therapy for up to three years. Importantly, clinical outcomes and product feedback from a growing number of cases and trained surgeons continue to be very positive and reaffirms our view that with the launch of IDOSTR we are pioneering a brand new therapeutic category that has the potential to reshape glaucoma management as we know it today operationally our teams continue to make great progress in the execution of our detailed launch plans for idos tr including first growing the universe of trained surgeons and accounts second expanding utilization of the installed active surgeon base third broadening and streamlining market access among MACS commercial and Medicare Advantage payers. Fourth, expanding the robust body of clinical evidence. And fifth, accelerating marketing investments to support increased patient awareness and education. Overall, while we remain in the early 80s, I couldn't be more pleased with the strong foundation we built to bring this transformative technology to market and expand the treatment alternatives for patients suffering with glaucoma and ocular hypertension shifting to our us-step business as anticipated the five mac lcds implemented in the fourth quarter of 2024 continue to cause some transient turbulence in the market during the first quarter as surgeons navigate restrictions when using two made surgical devices in the same procedure we expect this makes market headwind will continue over the course of 2025 as providers continue to navigate the impacts associated with these LCDs until the anniversaries later this year moving on our interventional glaucoma franchise also delivered record net sales of 29 million on a year-over-year growth of 15 percent on a reported basis and 19 percent on a constant currency basis the strong growth was once again broad based as we continue to scale our international infrastructure and execute our plans drive makes forward as the standard of care in each region and major market in the world we remain in the early stages of expanding our ig and product portfolio initiatives globally ahead of anticipated new product approvals and expanding market access in the years to come as previously discussed we expect the trialing of new competitive products in some of our major international markets may become an increasing headwind as we progress through 2025. Finally, our Corneal Health franchise delivered net sales of $18.5 million, including Patrexia net sales of $15.4 million. As discussed throughout 2024, our first quarter results reflect the continued impact of Patrexia realized revenues as a result of our entry as a company into the Medicare Drug Rebate program or NDRP. Shifting gears to our corneal health pipeline during the first quarter, we announced FDA acceptance for review of the previously submitted NDA for Epioxa, our next generation corneal cross-linking I-link therapy for the treatment of keratoconus, a rarely diagnosed site-driving disease. This important milestone brings us one step closer in being able to provide care to COVID patients in the Amsalva community with the first FDA-approved, non-invasive corneal cross-linking drug therapy that does not require the removal of the corneal epithelium, the outermost layer of the front of the eye. We look forward to working closely with the FDA in their pending review process as we progress toward the agency's established PDUFA date of October 20, 2025. Alongside this, our teams continue to make nice progress with the preparation and planning of the Epioxa commercial launch targeted for next year. It is worth reminding investors that an Epioxa approval also provides us with the opportunity to launch this pharmaceutical therapy supported by the right long-term pillars to optimize patient access, a persistent and at times frustrating challenge for us historically with Latrexan. We continue to believe that Epioxa, which is designed to preserve the corneal epithelium, streamline procedure times, improve patient comfort, and shorten recovery time, represents a potentially meaningful advancement in the treatment paradigm for patients suffering from keratoconus. Beyond Epioxa, we're also pleased to share we recently commenced a 510K pivotal study under FDA IDE for the Presser Flow Microshunt, an ab-external system designed to help drain excess fluid from the eye and reduce intraocular pressure in refractory glaucoma patients. Our commercialization efforts of Presser Flow in Canada, Australia, and several Latin American countries have reaffirmed the strong appetite within the global abdomen community for this technology as a more elegant, better-tolerated ab-external alternative to conventional filtration surgeries for late-stage glaucoma management. Additionally, we continue to advance several other important clinical trials, including one, a PMA pivotal trial for ISPEN infinite mild-to-moder glaucoma patients, two, phase two trials for our ILIG third-generation therapy, three, a first-in-human clinical development for GLK-401, our intravitreal multikinase inhibitor retinal program in wet AMD patients, where we now also have an open USFDA-INDE. And four, a Phase IIb3 clinical program for iDose T-Rex, our next-generation iDose therapy. Finally, we remain on track to follow a USFDA-INDE immense clinical study for ilution demodex blephoritis later this year. As you can see, we have a lot to be excited about when it comes to the significant potential value that we believe our pipeline programs may create. At the same time, as we consistently discuss, we continue to prioritize the cadence of our investments as we strive to strike the right balance of risk-based investments in our capital position now and in the future. To that end, we ended the first quarter of 2025 in a strong capital position with cash and equivalents of more than $303 million and no debt. This has allowed us to continue to be active on the business development front with a focus on transactions that support our existing organic growth initiatives. One such example of this is our recently announced expanded collaboration with Radius XR and TopCon healthcare that enables us to accelerate our global efforts to bring the tools and software solutions needed to democratize the diagnosis of glaucoma and in turn create more efficient care networks for patients afflicted with this lifelong disease. Finally, given the ongoing conversations around tariff and geopolitical issues, we wanted to highlight that we manufacture and source our products primarily within the United States. And as such, we expect minimal direct exposure to the most recently implemented tariff-related policies. In conclusion, I am very pleased with the record quarter and strong momentum in our business as we continue to successfully advance our mission to truly transform vision by pioneering novel, droplets platforms that can meaningfully advance standard of care and improve outcomes for patients suffering from site-threatening chronic eye diseases. So with that, I'll open the call for questions. Operator.

At this time, if you would like to ask a question, press star followed by the number one on your telephone keypad. If your question has been answered and you would like to remove yourself from the queue, press star followed by the number one. Your first question is from a line of Tom Steven with Stiefel.

Great. Thanks for taking the questions. I guess first to start off, would you be able to provide U.S. stent growth in the quarter? And as a tack on to that, Joe or Tom, maybe if you can talk more about what you're seeing in terms of how doctors are reacting from a share standpoint to the LCD so far this year and expectations looking ahead for U.S. mix. Thanks.

Hi, Tom. It's Joe. I'll start off and then Tom can add any additional color that he might have conversations he had including this past weekend at ascrs um you know in the first quarter we really saw um the u.s clock home business you've seen the reported overall you know 40 plus percent year-over-year growth um and the five percent sequential growth and you know as it might be expected that was entirely driven by the same expansion of idos tr and offset by the impact of these lcd restrictions um they were modestly more pronounced than expected on our stint franchise And in total, we saw a mid-single-digit decline year-over-year. So we're going to continue to probably forecast that for the foreseeable future here as we continue to navigate the potential impact of those LCD restrictions on our customers. You know it's somewhat uniquely challenging for us to forecast given we estimate that The LCD changes removed 10% to 15% of the MIG's volume, if you will, in 2025 when compared to 2024. But for us, that's also somewhat offset by growing standalone utilization of ISPEN Infinite and confounded, obviously, by the prioritization elevated associated with IDOS-TR. So, you know, from a macro standpoint, despite the 10% to 15%, you know, call it headwind in the combo cataract MIGs, Our sense is that we're holding our own and the fact that we've experienced the mid-single-digit decline in the first quarter is probably a relative positive in the context of the overall market dynamics throughout that quarter. As it relates to doctors, I think it's very specific to their own decisions and algorithms and how they make those selections. Obviously, they're disappointed by the fact that the clinical decision-making has been taken out of their hands and being determined by an insurer, in this case, a medical director or a MAP. But they're navigating that, and perhaps they'll be focused more on a serial approach to the glaucoma care versus trying to do it combinatorially in a single procedure. That makes sense.

Really helpful. And then my follow-up pivoting to IDOS, I wanted to ask about Noridian specifically. It's been the most advanced, Matt, in terms of reimbursement. I think exiting last year was the only one with kind of streamlined J-code reimbursement and a professional fee on the fee schedule.

So, Joe or Tom, have you seen or are you seeing any sort of inflection or acceleration in Noridian, you know, again, with reimbursement in a solid place? and then is it fair to view neridian maybe as sort of an analog for when the rest of the max come up to speed thanks yeah tom i think clearly neridian is the the first case study that we can you know watch uh assess and then extrapolate in terms of what it can mean for um the other the other max that they come online and and in fact um in some ways what we've been seeing as of late in Novitas and First Coast validates that assumption that the trend lines are somewhat consistent and the timelines associated with those trend lines are somewhat consistent. You know, sometimes as these milestones are knocked down or as the adjudication becomes more streamlined, it takes a little bit of time for that to translate both for the sales force, the customer, to their, you know, scheduling and staffing as well as ultimately the procedures attached to it. But what we are seeing is continued solid and expanding growth. You know, you referenced Meridian specifically, given it was there first. And it shouldn't surprise you that, you know, despite being around 20% of the covered lives, its percentage of our overall, you know, IGU's contribution is something close to double that, given the dynamics of play there.

Your next question is from the line of Ryan Zimmerman with BTIG.

Hey, excuse me. Good afternoon. Thanks for taking our question. You know, last quarter, Joe, you gave some commentary on kind of the components of guidance from a growth perspective. You know, you've beat now for the, you know, having the first quarter behind you, guidance is staying the same. Maybe, you know, be curious to know kind of where you stand on some of those components within your guidance. obviously with an emphasis on kind of the STEM versus, you know, IDOS franchises and contributions, or if those still hold, then remind us what those are as we think about guidance today.

Yeah, happy to do that, Ryan. Obviously the first quarter was strong from a performance perspective with the 25% growth and certainly highlighted by the 40% plus growth in the U.S. And if you think about, there are a fair number of, I'll call it, adjustments as we make our way through the year in terms of what comprises the overall guidance here. And so in no particular order, when you think about the corneal health business, we continue to dial in the impact of MDRP on this franchise. and at this point I think we would probably guide you towards flat to low single-digit growth clearly ahead of what we expect to be an exciting year in 2026 with the launch of with Epioxa that's a small slight change as we've dialed in that on the international glaucoma front encouraging start to 2025 you know continued strong performance around the globe and so we probably have revised expectations there of I'll call it high single digit to low digital double digit growth year over year as we continue to kind of balance strong performance against the macro uncertainties and the backdrop that all companies are facing and then in particular obviously competitive product launches and key markets and the laughing from that amended French rebate agreement we talked about in 2024. And that then leads you to U.S. glaucoma where you know I think we now expect that the LCD headwinds consistent what we saw in the first quarter and I'll call it the hydrous royalty expiration to generate a call to mid single-digit decline for non idols revenues in 2025 and when you put all that together which I'm not expecting necessarily do on the fly right it's going to imply that we're actually are modestly increasing our idols expectations for the remainder of 2025 versus what you probably had or most people had in their models coming into the call yeah i know that that makes sense joe and um that all tracks with with kind of the numbers that i'm getting to and so the follow-up question to

that is is around the pacing of idos um and and you know we saw you uh this weekend at ascrs obviously a lot of focus there on idos how do you think about i mean there there is a pretty steep ramp implied on your high dose expectations this year and and and some of that is from you know kind of max coming on board and so forth but just talk us through kind of what's underpinning those assumptions to get from where we think you did today and i by my math about 21 million and change this quarter to what arguably is um almost double that by uh the fourth quarter

Yeah, sure. I mean, in some ways also, as you know, Ryan, it's not significant change in volumes to drive those numbers. Obviously, it's a doubling in volume, but at the end that we're at right now, modest changes in your assumptions can drive those types of results in your model and your forecast. But, look, I think for us, you know, underlying where we sit today is obviously the month-to-month continued progress that we've been making, including the progress we made from February into March and March into April sitting here today. And if you think about what you're talking about is using the number you gave, $21 million, you're already at an $85 million run rate exiting the first quarter. And as you know, March was probably the largest contributor of that. So, as we move forward, I think we've got good momentum to continue to achieve the Eidos expectations that are underneath our guidance. And maybe more specifically, you know, just thinking about the Medicare, you know, fee-for-service patient population, you know, Tom asked about Noridian, but clearly we also are in the middle right now of turning on Novotis and First Coast. I would say that in recent weeks, they've really joined the operating as expected group, which previously would have only had Meridian in it. And it took some time after the pro fee schedule was established and published to reach that status. And at the same time, you know, Palmetto and WPS today largely appear to be paying the J code correctly. And our attention and efforts in those MACs have started to shift to achieving more consistent professional fees. and even cgs and ngs have been showing early signs of jaco consistency so i'm not quite ready to put them in alongside palmetto and wps there are signs for for optimism there the translation of which uh in each one of those things does not necessarily mean that any one point in time any one quarter including thing quarter is where you're going to see some pop but i do believe that overall it's a consistent um upward progress on market access and and in turn the commercial results that come downstream of that.

Your next question is from the line of Larry Beigelson from Wells Fargo.

Good afternoon. Thanks for taking the question. I guess, Joe, on iDose, the question I have is, you know, have things played out according to your expectations on the reimbursement side? Has it taken longer? And, you know, obviously, I guess, are you still, you know, would you consider changing the price? I mean, obviously, the price came out higher than people expected. You know, how much of an impediment is that? And would you consider an LCD to unlock Medicare Advantage?

So, Larry, let me first say that as it relates to IDOS and our internal expectations, both for 2024 as well as in the first quarter of 2025, the results have exceeded what our forecasting expectations were from an analytical perspective. As it relates to market access? You know, that's a harder one to answer because while it may have aligned with some ways with what we had, you know, forecasted that underpinned our models, you always want to move faster and you always want to see streamlined adjudication quicker, whether it's on the drug side or on the professional fee side, because, you know, downstream of that, you know, patients aren't getting access to your technology, your therapy that deserve it until you've got those things streamlined. So we've been operating as an organization with a high degree of urgency quartered and quarter out on working through the adjudication and getting this to a place where it's more streamlined like it is now in Noridian, Novitas and First Coast. I think that it's a misconception to think that price is the element driving the pacing of these coverage and the streamlined education. It's a process that every company goes through when they have a newly established T-code, or in this case, T-code and J-code, to drive the volumes that are required for these MACs to both understand the underlying procedure, quantify or value that, and then feel confident enough to put it in their systems as such. And so from our standpoint, I think maybe the only thing that impacted that from a price standpoint is that it's obviously a little bigger leap for the customers in the early days, but certainly well worth that squeeze, if you will, downstream as you get into the place like we are with both Meridian, Novitas, and First Coast today. um i i think as an as an lcd matter um we've seen the the downsides when when others have pursued um lcd you know dynamics uh in and around us and and so i i don't know that's the first place we would go to try to drive um more streamlined adjudication ultimately the medicare advantage We have pretty significant coverage today along the similar lines of what Darista has as the other procedural pharmaceutical. And so we would expect it to go down that path moving forward here in a very similar way and continue to open up those access to those patients. I don't think we need an LCD to accomplish that.

All right. I'll leave it there. Thanks for taking the question, guys.

Your next question is from the line of Alan Gong with J.P. Morgan.

Thanks for the question. You know, kind of piggybacking off of the tariff commentary that you provided, you know, I think one of the concerns is that, you know, as we move into the back half of the year with kind of a pretty uncertain macro backdrop, which companies might be, you know, more or less exposed to an economic slowdown and potentially kind of like, you know, lower procedure volumes. So I guess just from your point of view, when we think about iStent and iDose, if there is a economic slowdown, how exposed do you think you are to those kinds of dynamics?

Yeah, I think it's something we factored in in our decision to leave guidance where it's at. It may have been, in some ways, one of the more significant contributors to our decision to sit tight on guidance here at the beginning of the year. And it's hard, you know, Alan, to point to a specific cause and effect when it comes to things like, you know, macroeconomic policy and the various places that can rear its ugly head. For us, in general, ophthalmology, it follows the areas of health care that are that are a little bit more insulated. Certainly the kind of procedures that are associated with glaucoma care where they're not elective as much in nature. But anytime you see pressure on the economy at large, you can see, you know, if rates rise and people are having a harder time getting access to lines of credits or in general running their business, you can have impact as surgery centers or customer offices or different things struggle to make their way through an economic downturn. and so I think it behooves all of us to stay a little bit cautious around you know the next you know six nine twelve months as we play our through the players our way through this tariff situation what it could mean for for the economy overall got it thank you your next question

is from the line of David Saxon with Neiman oh great uh good afternoon thanks for taking my questions maybe I'll I'll do a couple on idos so um on specifically on reimbursement it looks like some of the IDOS kind of pamphlets or guides that you have posted, it looks like it includes like net advantage and commercial. So I wanted to ask on commercial coverage, like how broad is that coverage from a covered lives perspective? What are you seeing in terms of dollar reimbursement versus what the Macs are doing? And then, you know, I don't know if you can name like the major payers, commercial payers that are most consistent.

Yeah, David, obviously, I would say first maybe from a macro standpoint given the progress we're making with with medicare we have started to move forward selectively um in providing i'll call it customer patient access into the commercial of medicare advantage arena we signaled that was part of our plan and that's something that we very slowly and methodically began to roll out over the course of uh really exiting the first quarter into the second and i would expect us to continue to be equally as methodical as we move forward here, primarily because you want to ensure that your customers have the right experience, the right tools to navigate this more tricky payer landscape successfully. But behind the scenes, you know, our payer relations team and others have been hard at work since really the date of approval. And so on both the commercial as well as the Medicare Advantage side, you see coverage policies that extend out over more than 50 percent of the potential patient population that are covered by those respective areas. And with the rest, you almost universally see policy silence. And so from our standpoint, we're in the process now of knocking down that same claims adjudication, doing the prior offs, and getting comfortable that it's working the way it's supposed to. And we've had some good early success in seeing claims go through and payers as large as United and as small as some of the more regional plants that are out there. So I think we're in a pretty good spot from a setup standpoint there. It really is much more down to methodical execution and making sure that those customers are doing it the right way in a way that's successful for their practice while they provide access to those patients for IDOS.

Okay, great. That was super helpful. And then in the script, you talked about, you know, expanding the IDOS launch. Some of that includes training. So I wanted to ask, like, if you could give an update on the percent of kind of your core iStan accounts that you've trained on IDOS, you know, where is the level of demand among doctors for training versus kind of the capacity of the sales force to actually do the training? Thanks so much.

Yeah, David, I think it's an important point. We've said it before, but I'll reiterate it here. I don't think that the clinical training, if you will, the OR training, the dry labs, the initial procedures, is in any way the gating item from a capacity standpoint on our sales force, nor from a, you know, demand perspective on behalf of the doctors. There are plenty of surgeons every day who continue to want to be trained and add Eidos into their toolkit, and our sales force is more than capable of meeting that demand. I think to the answer of your first question, the more time-consuming and important aspect of all that is making sure that the entire office that surrounds that physician or that surgery center are good at adjudicating and processing and following up on the claims that they submit around the product. And as they get better at that, then you start to see the doctor being able to do what they want to do clinically. And that's when we start to have some fun in an account in terms of where IDOS can go.

Your next question is from the line of Adam Mader with Piper Sadler.

Good afternoon. Thank you for taking the questions. Two from me. The first one is on IDOS re-implantation. I just wanted to see if there was any update there. I think you were planning to make a post-approval supplement submission to FDA in the first half of the year. So, any updates on the progress you're making with FDA? And how quickly do you expect to know, I guess, kind of one way or the other? And then I had a follow-up. Thanks.

And I'm happy to take this question. So, yes, we talked about filing the post-approval in the supplement in the first half. We've actually done so in the first quarter. So, Now, with the FDA, the FDA has a six-month statutory obligation to get back to us, and so we expect to be able to hear results of their adjudication by year-end.

That's really helpful. Appreciate the color there, Tom. And one maybe for Joe or Alex. You know, I know you guys don't give quarterly guidance, but you did give some helpful color on the last earnings call around kind of sequencing of models. So I wanted to see if there's any updated thoughts in terms of kind of how you see the rest of the year playing out on the top line. And specifically wondering if you had any kind of reaction comment as it relates to Q2 revenue. I show consensus at $116 million and Q2 eye-dose revenue at $25 million. Just any comment on the list of your stand.

Yeah, happy to, Adam. I think, as you know, from a seasonality perspective, ophthalmology tends to be, you know, 23%, 24% in the first quarter, 24%, 25% in the second, and similar in the third, maybe down a touch. And then the remainder, you know, anywhere from 27% to as much as 29%, 30% in the fourth. Obviously, ours gets up into it a little bit because of the launch dynamics with IDOS. And sitting here today, I would probably point you to something, you know, obviously the first quarter represents about 22% of the midpoint of our guidance, and the second quarter will probably be somewhere in the 23-24% neighborhood, followed by 24-25% in the third, and call it 28-30% in the fourth quarter. And again, the exact pacing and sequencing of IDOS is going to be the key determinant of that, on top of what is the underlying seasonality.

Your next question is from the line of Joanne Wilson with Citibank.

Thank you so much for taking the question, and you actually set it up great. So the quarterly pace for the remainder of the year, I think if I back into the guidance commentary, you raised maybe the IDO's guidance by about $5 million. Could you confirm if that's correct? And also, how do you think about the ramp over the subsequent quarters?

Yeah, Joanne, I think what I'd probably say is, we'll get that specific, but clearly I said we raised, you know, underlying and impliedness is a modest raise to the high dose expectations. And clearly we expect, you know, from, you know, month to month and quarter to quarter to continue to see the progress. I think when you unpack some of the earlier guidance that I gave and some of the commentary around the various parts of our business cornea, interventional, the stents, et cetera, and the seasonality, you'll get pretty close to where you need to be from a basic standpoint.

Thank you.

Your next question is from the line of Margaret Andrews with William Blair.

Hey, good afternoon, guys. Thanks for taking the questions. Two, both around the STEM side of the business. So, you know, we were at ASCRS. We did see some data kind of around the benefits of combo procedures for patients. I guess, what do you guys think of these data sets? are they incremental? Are they more meaningful? You know, can they have an impact on the current LCD? Or what steps, I guess, is the industry taking to potentially overturn it and timing of that?

I think from a macro standpoint, you ultimately have to combat that with evidence, right? And so growing evidence, you referenced some, Margaret, around studies that are done by individual practices, groups of practices, manufacturers like Glaucos, know ultimately are what help um overturn if you will restrictions on uh on clinical decision making which is what you saw with the lcd in november so i i i you know i think you should expect to see more of that um from us and from others and and from practitioners themselves um because we all know that clinically it makes sense to attack this progressive disease from multiple angles um and so shame on us if we're not generating the evidence to support that

And I would just add on that, you know, if you think about it, we have been in the driver's seat in combination therapy for some time in multiple modalities. And I think many of you are aware that we already have completed a phase four clinical style or trial that compares the ISEN infinite plus IDOS versus infinite. And our hope and expectation is that study will be able to generate data that will not only convince the operating clinician to go to a place where they already want to go, which is to combine two different modalities to be able to lower target pressures with a single procedure, but also be able to actively support any MAC commercial or Medicare Advantage adjudication in the future. So we try to be prescient in doing these studies well in advance of the market trends that we see that are developing in front of us.

Okay, that's helpful. Thank you.

And then just, you know, as we look at guidance on stent growth, and apologies if you sort of referenced it, but I'm going to try to get a finer point on it. The stent growth I think you previously guided to for U.S. kind of flat to down, low single digits, is guidance now more solidly kind of in that down low single digit range for U.S. stents? And anything that we should think about from a comp perspective throughout the year for that specifically?

Yeah, Margaret, I did allude to it, but I'll put a finer point on it. the the underlying expectation our guidance right now is that for the non-idels business obviously the vast majority of which is since that that will be down mid single digits for 2025 that's based upon you know what we saw um in the first quarter um and a continuation of that trend and again the puts and the takes around that are obviously the restriction impacts in combination with cataract surgery um which are partially offset in our case by continued growth in the standalone side of our of our stent business but but net net uh we expect the non-idose revenues in the in the u.s to be down mid single digit your next question is from the line of richard

neuter with true securities hi thanks for taking the question just can you elaborate a little bit on what what assumptions you have for the remainder of the year with respect to your your slightly higher IDOS guide with respect to kind of what needs to be in place for, you know, additional pro-fee coverage? Or can you more or less get to the numbers that you have with, you know, the level of reimbursement that you have now and just physicians getting more comfortable going forward? I'm just trying to get a sense for kind of what needs to happen to get to the IDOS numbers in your model?

Yeah, well, maybe I'll look at it a little bit in the way it was asked earlier. So, you know, if I think the number that was thrown out was, you know, 21 million for the first quarter. So if you annualize that, you're talking about an $85 million run rate based upon the conditions that existed in the first quarter. Those conditions were obviously a solid payer, if you will, in in neridian um an emerging pair in nova tops and first coast that really started to turn on more towards the latter part of the quarter entering into the second um and um increasingly improved if you will uh adjudication of claims at wps palmetto and then later on ngs and cgs So underneath our assumptions is that that trend line continues, where first they become all streamlined over the next stretch of time for the J-code and the facility. And then usually at some point thereafter, the volumes ultimately drive professional fee schedules. And in addition to that, as I mentioned, we're going to be slowly, methodically rolling out commercial Medicare Advantage. There are a lot of drivers there that can drive varying outcomes, some of which are obviously more positive than our guidance, some of which are not. I think we've tried to be, I'll call it the wide part of the bell curve, if you will, in the various scenarios in setting the guidance that we have and what that implies for IDOS for the year.

Got it. And if I could just one more, on the combo MIGs within a combo cataract, doing more than one MIG, is IDOS getting implanted with the MIGs or in concert with agoniotomy? Is that included in kind of the LCD change or is IDOS actually able to get implanted on a stacked basis?

Eidosis nor are any procedural pharmaceuticals a part of the LCDs that were published in November and so the decisions associated with combinatorial use of that are entirely in the hands of the physicians that use the product.

Your next question is from the line of Michael Sarcon with Jeffries.

Good afternoon and thanks for taking our question. Just to start, maybe following up on Richard's question, I believe last quarter you had mentioned maybe there's just some slight benefit from commercial coverage wins baked into your expectations for eidos this year. Do you think you can comment on, you know, whether or not there have been any changes in kind of the mix of what's baked in for eidos between, you know, traditional Medicare and commercial?

I don't think our commentary, Michael, has really changed in the context of the commercial and Medicare Advantage dynamics as with the 2025. What we've tried to say last last quarter, as well as this one, is that we're going to be very methodical in rolling this out. We're going to be methodical in rolling out access to specialty pharmacy distribution, as well as buy and bill into this customer or these customer bases or insurance types. And so, you know, obviously we do expect some contribution over the course of the year from that, but we're really not anchoring our assumptions as it relates to our guidance or or idos results underneath it based upon positive or negatives associated with the commercial and medicare advantage rollout those are things that we we want to make sure that we're very methodical in doing and so we're not um we're not pinning the forecast based upon a certain level of achievement of volumes out of that those those insurance types understood thank you and then my My follow-up, maybe on the P&L, OPEX, any change to your expectations for about 15% year-over-year

growth off the adjusted 24 base?

Hey, Mike, this is Alex. Thanks for the question. And at this point, no. I mean, we would continue to march down this path watching and balancing our investments against the revenues that are generated by IDOS and the rest of the business. and so we would continue to expect that 15 percent or so growth off the 2024 base on OPEX for the year.

Your next question is from the line of Anthony Patron with Mizzou Group.

Thanks, and I hope everyone's doing well. Maybe a question just on the Neridian region, specifically IDOS, sticking there, US IDOS. If we look at the Neridian region as being, you know, sort of further along the product curve here, maybe just an idea of a heavy user in that region. You know, do you have sites that are getting up to, say, you know, 15, 20 units a month? And even in that region, are there laggards? And what has the product experience been like where we do have a region where reimbursement is quite robust? And I'll have one quick follow-up.

Yeah, Anthony. So for Meridian, which obviously I commented on earlier in the call from a macro perspective. So I'll focus on your sort of customer utilization question. I think it's all of the above. We absolutely have customer and now growing customers, if you will, that are doing the 15 to 20 a month type volume for IDOS within Meridian. And we also have customers who are at very different phases of that adoption, some that are doing their first cases this week and or might be doing just a handful but haven't fully, you know, adopted yet and haven't had it streamlined in terms of their practice and patient selection, all the various things that go into having a successful adoption within a surgical group. We also have, you know, areas within the Norwegian area that are performing much more strongly than others based upon the other dynamics in the context of either hospital approvals or other things that can slow the adoption curve within even that geography where you do have streamlined coverage.

Helpful. And just a quick one here is leveraging the balance sheet. Should we think about leveraging the balance sheet to close the donut hole? That's, I would assume, more a commercial coverage sort of event. But maybe just a recap on the view from Glaucos on leveraging the balance sheet to close the donut hole for IDOS. Thanks.

Yeah, I'll take a shot. I think I know what you're saying. The donor hole, and this is a buy and bill product, so it's about the donor hole, but it's more about the patient out-of-pocket associated with commercial, you know, payer lives. And we absolutely intend, like most, you know, pharmaceutical products in the buy and build category, to have, you know, $0 copay program. So we will quote-unquote use the balance, if you will, to make sure that out-of-pocket coverage costs are not an issue to impeding utilization for those commercial payer patients.

Your next question is from the line of Danielle and Taufey with UBS.

Hello, can you hear me okay?

We can.

Okay. So sorry about that, guys. Just a high-level question for you guys. As IDOS ramps, and I appreciate the 2025 headwinds to the U.S. iStent franchise, but longer term, what do you think is the right way to think about the long-term growth rate for the legacy iStent franchise in an environment where IDOS is hopefully ramping pretty rapidly?

What's the right way to think about the balance of those two businesses and and how quickly the the legacy ice dent business can grow and i have one quick follow-up after that yeah daniel i i think um there's a couple different ways to to parse that i mean first of all obviously over the course of 2025 you have just the you know relative impact of the lcds and as a headwind it grows as we've alluded to and i think others in the industry have as well but as you get past that you're still talking about an industry segment where you're moving from a pretty small patient population in combination with cataract surgery into a very, very large potential patient population in standalone interventional glaucoma. And I think if there was one thing that we certainly took away from, you know, the AGS earlier this year and ASCRS more recently, it's that, you know, this movement in partnership with physicians and increasingly in alignment with the broader industry is we're really leading the charge that wants to get changed standard of care in glaucoma and improve patient outcomes. I think, you know, we have more conviction now that this transformation, as Tom alluded to, an IG mindset is well underway. If you look at the sheer number of events, symposiums, conversations, and debates, it's pretty encouraging as you think about that long-term growth dynamic for doing the right thing for patients and intervening early and as needed for these patients so that's a long-winded way of saying i i think you have you know a decade plus period here where both products like eidos as well as stents and in other areas of migs alongside of stents can grow in tandem as more and more surgeons adopt a a proactive mindset and really go after tackling this disease which we believe is a surgical one okay gotcha that makes sense and

And then just a follow-up on that is iStent Infinite and the standalone market development. I mean, where would you characterize how we are today? What are the barriers that you guys are still addressing there? Because that really does feel like the long-term opportunity here for iStent Infinite. Thanks so much.

Yeah, we agree. And I think, you know, if you think about where we're at relative to those of us in the room and in the building who were there when we were changing the standard of care and pioneering and combination of cataract surgery, I would say, and I think Tom would agree, that we're well ahead of that curve from a timeline perspective in changing the standard of care as it relates to standalone procedures. Having said that, it never happens as fast as we would want, or certainly you all as investors or analysts would want. It takes changing one surgeon's, you know, not just their clinical mindset, but then their operating behaviors and the things they do to educate their referral networks and ultimately getting these patients treated in an interventional way. And the good news is we're well underway on that front with quite a few early adopters that have already shifted their patterns.

And that's only growing. and as i mentioned that that was that was on full display at ascrs um and we couldn't help but but be pleased with what we were saying yeah i was just going to say that um with what's happened just in the last really 18 months or so since we have put our our really turned our turrets towards this intervention of our coma mindset and mind frame you can see it at ags you see it at ascrs there's clearly going to be a strong movement in the direction that we want i think that the standalone is an incredible unexploited opportunity not only for ice and infinite but as you think about it and do your models in the future as I said earlier what I do believe strongly is that surgeons will increasingly look to be able to take and be able to place a procedural pharmaceutical in this case that I goes in combination with an infinite to be able to maximize their opportunity to lower target pressures and and preserve um the vision of these uh glaucomatis patients and so i think you're going to see growth on both sides i don't think they'll happen at the expense of each other i think that these two products can work in tandem particularly out of years as surgeons become increasingly comfortable uh placing uh dual modalities into the eye our final question will come from the line of patrick wood from morgan

Stanley. Perfect. Thanks so much. I'll keep it just to one. I'd love to hear a little bit about what you guys are hearing back from the patients and also, you know, the docs conversations with the patients when it comes to Eidos. You know, is this a quick and easy conversation and there's quite a lot of buy-in from the patients right away? I mean, it seems a fairly easy value prop to communicate, but obviously, you know, you have the doc buy-in already. I'm just curious, like how you feel the conversations between the docs and the patients are going and if you've had any feedback on that. Thanks.

Yeah, Patrick, I think that from a physician's standpoint, there's always a journey around the conversation they have with patients, in particular where you're recommending, you know, interventional glaucoma procedure, and in this case, obviously, Eidos. But what you see is every day them getting better at that, and certainly as folks become more comfortable and confident with the outcomes which we're seeing are are terrific that enables them to then speak with that much more confidence to the patients who are walking into their practice and recommending is something that they would do for their own eye or for their mother's eye if they were afflicted with glaucoma and so I think we're making tremendous progress there and in most important the foundation that underpins all of this is that the product is performing um as advertised and as a result of physician enthusiasm continues to grow around it downstream of that they will continue to perfect how they operate how they talk to patients and all the various things that ultimately you know make this become what we think it will be great stuff thanks guys thanks i will now hand i will now hand the call back over to the company for closing remarks okay i want to thank you all for your time and attention today and thank you as well for your continued interest and support broadcasts.

Goodbye.

This concludes today's call. Thank you for joining. You may now disconnect your lines.