SGHT - SIGHT SCIENCES: A VISIONARY IN THE FIELD OF OPHTHALMOLOGY
SIGHT SCIENCES: A VISIONARY IN THE FIELD OF OPHTHALMOLOGY
Sight Sciences, Inc. (NASDAQ: SGHT) is an eyecare technology company focused on creating innovative solutions to transform care and improve patients’ lives, especially in glaucoma and dry eye.
Sight Sciences, Inc. (NASDAQ: SGHT)
Market Cap: $425.97M; Current Share Price: $8.79
Data by YCharts
The Company and its Products
Sight Sciences has focused initial product development efforts on treating two of the world’s most prevalent and underserved eye diseases, glaucoma and dry eye disease. The Company currently has two commercial products in its Surgical Glaucoma segment.
OMNI is a handheld, single-use, therapeutic device that allows ophthalmic surgeons to reduce elevated intraocular pressure (IOP) in adult glaucoma patients. SION is a bladeless, manually operated device used in ophthalmic surgical procedures to excise trabecular meshwork, which is the tissue located near the cornea through which aqueous humor, or fluid, flows out of the eye.
OMNI allows the ophthalmic surgeon to sequentially complete two distinct, well-established but historically invasive ab externo glaucoma procedures, canaloplasty and trabeculotomy, in an efficient, minimally invasive manner using a single, bloodless, and sutureless clear corneal microincision.
The U.S. Food and Drug Administration (FDA) has cleared the use of OMNI for reducing IOP in all adult POAG patients on a standalone basis or combined with cataract surgery.
SION is registered with the FDA as a Class I 510(k) exempt device. SION’s bladeless design, micro-engineered and precision manufactured using specialized lasers, excises tissue without cutting. SION grasps and removes diseased tissue as the surgeon sweeps the instrument around Schlemm’s canal with a single smooth motion. The bladeless technology of SION was developed with leading ophthalmic surgeons to improve safety and ease of use by eliminating the need to navigate sharp instrumentation within the eye’s anterior chamber and iridocorneal angle anatomy.
Additionally, the Company has one commercial product in the Dry Eye segment. TearCare is a unique open-eye heating and expression device designed to melt and remove meibomian gland obstructions. It has a compelling physiological profile to address obstruction from meibomian gland disease (MGD), the primary cause of evaporative DED, a condition characterized by low-quality tears that evaporate prematurely.
We’ll discuss key elements that indicate a promising future for the Company.
- Vast Market Opportunity
The annual addressable U.S. market opportunities for the products in surgical glaucoma and dry eye segments are approximately $6 billion and roughly $10 billion, respectively, while 2022 U.S. manufacturer revenues in surgical glaucoma and DED markets were roughly $466 million and $2.1 billion, respectively, demonstrating that currently available solutions have not addressed a large part of the market need.
An estimated 149 million people worldwide suffer from glaucoma. Primary open-angle glaucoma (POAG) is the most prevalent form of glaucoma. It affects over 60 million people worldwide, including approximately 4.3 million in the United States, of whom an estimated 3.4 million have been diagnosed.
On the other hand, dry eye complaints are the most common reason for a patient’s visit to an eye doctor. There are an estimated 757 million people globally who suffer from DED. And of the 38 million people with DED in the U.S., only an estimated 14 million have been diagnosed with the disease.
With highly effective products such as OMNI, SION, and TearCare, Sight Sciences is prepared to reap full advantage from the above opportunities.
The consistent therapeutic outcomes OMNI delivers are essential for patients and surgeons, especially those considering a Standalone micro-invasive glaucoma surgery (MIGS) procedure. Thus, Sight Sciences stands to gain from a Total Addressable Market of about $1 billion for Combination Cataract MIGS and nearly $5 billion for Standalone MIGS.
The Company’s goal is to establish OMNI and SION as the standards of care for POAG patients and goniotomy patients, respectively, by continuing to grow their adoption and utilization in the existing Combination Cataract market segment, which remains underpenetrated and estimated is capturing less than one-third of its current potential procedural volume. By training ophthalmic surgeons to use OMNI, it is possible to pioneer the development of the Standalone market segment (over 85% of the potential U.S. POAG market).
So far as Dry Eye Disease is concerned, studies have shown that evaporative DED resulting from MGD is associated with approximately 86% of all DED cases. As mentioned earlier, this translates into a market of about $ 10 billion for TearCare.
In December 2021, the FDA cleared TearCare for the application of localized heat therapy in adult patients with evaporative DED due to MGD when used in conjunction with the manual expression of the meibomian glands, paving the way for Sight Sciences to present its solution to the large target market.
- Strategic Value Creation Initiatives
As mentioned, Sight Sciences aims to develop a comprehensive best-in-class portfolio to treat Glaucoma and Dry Eye Disease. To achieve this end, the Company has developed a growth strategy which will enable it to
Among the growth strategies deserving special mention are the Company’s efforts to drive the adoption and utilization of products by leveraging additional clinical trials and market education
Sight Sciences has also developed robust clinical data evaluating TearCare. It has completed one RCT for TearCare (OLYMPIA) and completed enrolling patients in SAHARA RCT (SAHARA) in the third quarter of 2022. Data from OLYMPIA supported the FDA clearance of TearCare’s expanded indication for use in December 2021. Sight Sciences plans to leverage the results of OLYMPIA and SAHARA studies to support FDA clearances to develop symptoms for using TearCare and to support patient access strategy.
The Company seems to be taking adequate steps to ensure that its product offerings are recognized by the target market and easily accessible. Hence it can be assumed that Sight Sciences will benefit from growing revenues soon.
- Strong Financial Profile
Most recently, for Q1 FY23, the Company generated revenue of $18.8 million, an increase of 26% compared to the prior year. It achieved gross profit of $15.8 million in Q1 FY23 compared to $11.8 million for Q1 FY22, which translates into a gross margin of 84% in Q1 FY23 versus 80% in Q1 FY22.
Surgical Glaucoma revenue was $17.3 million, an increase of 25% compared to the prior year. The growth was primarily driven by a rise in the number of ordering facilities and utilization per ordering facility. Dry Eye revenue was $1.5 million, an increase of 47% from the prior year. This growth was primarily driven by increased sales of TearCare® to new and existing customers.
For FY22, the Company generated total revenue of $71.3 million, an increase of 46% compared to FY21, and improved total gross margin to 83% in FY22 versus 82% in FY21.
Surgical Glaucoma revenue in FY22 was $65.6 million, an increase of 41% compared to the prior year. Dry Eye revenue in FY22 was $5.7 million, an increase of 133% from the previous year.
For FY23, Sight Sciences has provided revenue guidance of $89 million to $94 million, translating into 25% – 32% growth compared to 2022.
As can be seen from the table and figures quoted above, the Company is on an exponential growth trajectory, and it seems that it will continue along the same path for some time to come. And after taking into account all the factors discussed above, it can be said that Sight Sciences is worth watching out for.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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Reference:
https://investors.sightsciences.com/static-files/db858d28-db2e-4162-93ed-fbab6ecb1902
https://www.sec.gov/ix?doc=/Archives/edgar/data/1531177/000095017023008526/sght-20221231.htm
https://www.sec.gov/ix?doc=/Archives/edgar/data/1531177/000095017023018865/sght-20230331.htm