Glaukos Corporation (GKOS) Stock Analysis
This article examines Glaukos Corporation (NYSE:GKOS) and its position within the broader medical technology (MedTech) industry.
The Growing MedTech Market
The MedTech sector is pivotal in healthcare, focusing on creating medical devices to improve disease prevention, diagnosis, and treatment. This includes familiar devices like pacemakers, imaging equipment, and implants. The market is poised for significant expansion, driven by multiple factors.
A Mordor Intelligence study projects the medical equipment market to reach $681.57 billion by 2025. Further growth is projected to $955.49 billion by the end of the forecast period, with a compound annual growth rate of 6.99% between 2025 and 2030. Key drivers include an aging global population, particularly in developed nations like the U.S., where 17% of the population was 65 or older in 2023. The rising prevalence of chronic diseases also fuels demand.
The United Nations estimates that by 2050, over 1.5 billion people globally will be 65 or older, representing around 16% of the world’s population. This demographic shift is particularly pronounced in Europe and North America, where this proportion is predicted to reach 26.9% by 2050.
Transformations and Growth Drivers in Healthcare IT and Medical Devices
Technological advancements, including the implementation of AI, predictive analysis, and complex algorithms, are transforming the healthcare IT sector. North America currently has the largest share of the medical device market, although the Asia-Pacific region experiences the highest growth rate.
According to a Grand View Research analysis, the U.S. medical device manufacturing market is anticipated to reach a value of approximately $256.2 billion by 2024, expanding at a compound annual growth rate of 5.9% between 2025 and 2030. Growth is propelled by factors such as an aging population, increased use of minimally invasive procedures, and increased sports and traffic accident rates.
McKinsey forecasts ongoing change in healthcare sector growth. Health services and technology (HST) revenue pools are predicted to increase at an 8% compound annual growth rate between 2023 and 2028. This is driven by the sale of cutting-edge technologies such as generative AI to payers and providers. Pharmaceutical services, especially specialty pharmacy, are also anticipated to continue to expand. McKinsey expects specialty pharmacy revenue to increase at an 8% compound annual growth rate between 2023 and 2028, driving up EBITDA for specialty pharmacies and managed service providers.
Glaukos Corporation (GKOS)
Glaukos Corporation (NYSE:GKOS) is a medical technology company specializing in treatments for eye diseases such as glaucoma, corneal disorders, and retinal diseases. The company creates micro-invasive surgical devices and drug delivery systems to improve patient outcomes. Its primary products include the iStent and iStent inject W micro-bypass stents for treating open-angle glaucoma, and the iDose TR, an intracameral implant that delivers glaucoma medication for up to three years.
Glaukos Corporation (GKOS) reported strong Q4 2024 results, with net sales of $105.5 million, a 28% year-over-year increase. Full-year 2024 sales totaled $383.5 million, up 22% compared to 2023, and the company projects continued growth with a sales range of $475 to $485 million for 2025. The growth was driven by the success of iDose TR.
Potential challenges for Glaukos Corporation include foreign currency fluctuations, competition in international markets, reimbursement issues, and the Hydros royalty expiration, which could impact revenues outside of iDose TR. Despite these challenges, the company is considered a leader in the glaucoma market with promising prospects for ophthalmology sector growth.
