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- Nova Eye Medical (EYE) focused on generating sales growth for glaucoma surgical devices in the first half of FY22
- The company’s glaucoma business was the main contributor to the $6.54 million in revenue reported for the period with Europe and China seeing immense sales growth
- While sales in the US fell by 10 per cent due to “intensified levels of competition”, the company is on track to launch a new version of its iTrack device in the US
- Nova also invested around $600,000 in a clinical program ahead of a planned multi-centre study to test its 2RT rejuvenative retinal laser therapy
- Company shares ended the day 5.56 per cent in the red to close at 25.5 cents
During the first half of FY22, Nova Eye Medical (EYE) focused on generating sales growth for glaucoma surgical devices.
Nova Eye Medical is made up of two business units, glaucoma and AMD/2RT which address the leading causes of blindness around the world.
Glaucoma is the leading cause of irreversible blindness and the second leading cause of blindness worldwide. The global market value for glaucoma surgical devices is currently estimated at US$610 million (A$438.2 million) per year with a 17 per cent annual growth rate.
Nova regards itself as a founding participant in the market with a product portfolio that is well known and trusted by global leading glaucoma surgeons.
The healthcare company recorded $6.54 million in total revenue for the six-month period which was almost entirely attributable to the sale of its portfolio of glaucoma surgical devices.
In particular, its Glaucoma segment experienced significant growth across Europe and China with sales increasing by 26 and 44 per cent, respectively.
Nova Eye Medical said the revenue growth in Europe reflects investments in commercial
infrastructure in Germany, including the establishment of a direct sales team. In China, the company credited the improved sales to a sustained marketing and sales effort by its local distribution partner.
Sales in the US however, fell by 10 per cent during the period to US$3.04 million (A$4.2 million) due to “intensified levels of competition.”
Despite the challenge in the US, favourable reimbursement changes from the start of 2022 triggered new surgeon interest in canaloplasty, which, combined with EYE’s new iTrack Advance canaloplasty device, is expected to drive sales growth and regain market share.
“Following its successful introduction into key territories in Europe over the coming months, a major priority for the business in 2022 will be the US market launch of the iTrack Advance,” Managing Director Tom Spurling said.
While the updated iTrack product comes with the effectiveness and accuracy of its predecessor, it will boast an ergonomic, easy-to-use handheld injector that’s more user friendly. As a result of this, the company expects a strong uptake by surgeons.
Expanding the commercial team in Germany and investing in the product launch resulted in an increased earnings before interest, tax, depreciation and amortisation (EBITDA) loss to $2.2 million, up from its $814,000 loss in the prior corresponding period.
Nova’s AlphaRET division commercially and clinically develops 2RT which is a “world-first” rejuvenative retinal laser therapy to treat intermediate age-related macular degeneration which is the leading cause of blindness in industrialised countries.
In the half-year, the company invested $600,000 in the 2RT clinical program to support a planned multi-center study. It also comprised technical and clinical submissions to the United States FDA.
“Whilst our preference is to conduct the multi-center study in the US, we are actively evaluating other study pathways. Further, partnership discussions are also underway to support funding of the study,” Mr Spurling said.
Nova Eye Medical ended the period with $13.4 million in cash, down from $17.8 million as at June 30 2021.
Company shares ended the day 5.56 per cent in the red to close at 25.5 cents.
