Nova Eye Medical's sales growth and operating result

Ophthalmic surgical device manufacturer Nova Eye Medical has reported a record combination of sales growth and operating result improvement during the year ended 30 June 2024.

Underpinned by solid performance in its core glaucoma segment including its flagship product, iTrack Advance, the company’s sales in July 2024 were materially above the previous year.

Investments recently made in markets outside the USA and changes in USA Medicare reimbursement rates for surgeries are expected to yield sales growth in those markets during FY25.

In July 2024, the Centre for Medicare and Medicaid (CMS) announced it proposed increasing the payments to facilities for hosting canaloplasty surgeries after designating canaloplasty as a ‘device-intensive procedure’.

The facility reimbursement rate in 2024 is $2,045 per surgery, and in 2025 $2,653 per surgery.
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“Group sales revenue of $23.3 million was achieved for the year ended 30 June 2024.

“Of this amount, $23.2 million is attributable to the glaucoma segment.

“Group sales revenue is up 35 percent in constant currency on the previous corresponding period (pcp).

“This result includes annual sales in the USA of US$11.4 million, up 71 percent on FY23.”

The strong sales growth has flowed through to the group’s operating results.

“The group EBITDA loss of $5.7 million is nearly a $3 million improvement on FY23.

“Of note is the EBITDA loss of $1.5 million in H2FY24, an improvement of $2.7 million on the first half of FY24.”

The improved result was driven by the glaucoma segment, which had improved gross margin and improved returns on the investments made in new sales representatives and marketing in the USA, particularly in the second half.

“The second half FY24 operating result augers well for future operating results.”

The company has cash on hand of A$6.2 million at 30 June 2024.

Further reading:
Nova Eye Medical boosts sales on glaucoma product launch
Nova Eye Medical tackles macular degeneretion