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Edited Transcript of GKOS.N earnings conference call or presentation 6-Aug-20 8:30pm GMT

·52 mins read

Q2 2020 Glaukos Corp Earnings Call SAN CLEMENTE Sep 16, 2020 (Thomson StreetEvents) -- Edited Transcript of Glaukos Corp earnings conference call or presentation Thursday, August 6, 2020 at 8:30:00pm GMT TEXT version of Transcript ================================================================================ Corporate Participants ================================================================================ * Chris M. Calcaterra Glaukos Corporation - COO * Christopher William Lewis Glaukos Corporation - Director of IR, Corporate Strategy & Development * Joseph E. Gilliam Glaukos Corporation - CFO & Senior VP of Corporate Development * Thomas William Burns Glaukos Corporation - CEO, President & Director ================================================================================ Conference Call Participants ================================================================================ * Andrew William Stafford Piper Sandler & Co., Research Division - Research Analyst * Anthony Charles Petrone Jefferies LLC, Research Division - Healthcare Analyst * Brian David Weinstein William Blair & Company L.L.C., Research Division - Partner & Healthcare Analyst * Christopher Cook Cooley Stephens Inc., Research Division - MD * Jonathan David Block Stifel, Nicolaus & Company, Incorporated, Research Division - MD & Senior Equity Research Analyst * K. Gong JPMorgan Chase & Co, Research Division - Analyst * Kevin Michael Farshchi Wells Fargo Securities, LLC, Research Division - Associate Analyst * Matthew Henriksson * Ryan Benjamin Zimmerman BTIG, LLC, Research Division - MD & Medical Technology Analyst * Zhilin Long ================================================================================ Presentation -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- Welcome to Glaukos Corporation's Second Quarter 2020 Financial Results Conference Call. A copy of the company's press release issued after market close today is available at www.glaukos.com. (Operator Instructions) This call is being recorded and an archived replay will be available online in the Investor Relations section at www.gluakos.com. I will now turn the call over to Chris Lewis, Director of Investor Relations and Corporate Strategy and Development. -------------------------------------------------------------------------------- Christopher William Lewis, Glaukos Corporation - Director of IR, Corporate Strategy & Development [2] -------------------------------------------------------------------------------- Thank you, and good afternoon. Joining me today are Glaukos President and CEO, Tom Burns; CFO, Joe Gilliam; and COO, Chris Calcaterra. Following our prepared remarks, we'll open the call to questions. (Operator Instructions) 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-looking statements. These include statements about our plans, objectives, strategies and prospects regarding, among other things, our sales, our products, our pipeline technologies, our U.S. and international commercialization efforts, the efficacy of our current and future products, our competitive market position, financial condition and results of operations as well as the expected impact of the COVID-19 pandemic on our business and operations. 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-looking 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 Investors section of our website at www.glaukos.com. Finally, please note that during today's call, we will 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 into Glaukos' ongoing results of operations, particularly when comparing underlying results from period to period. Please refer to the tables in our earnings press release that is available on the Investors section of our website for a reconciliation of these measures to their most directly comparable GAAP financial measure. With that, I will turn the call over to Glaukos President and CEO, Tom Burns. -------------------------------------------------------------------------------- Thomas William Burns, Glaukos Corporation - CEO, President & Director [3] -------------------------------------------------------------------------------- Okay. Thank you, Chris. Good afternoon, and thank you for joining us today. I hope you and your families are staying healthy and safe during these unique times. Before we talk about our second quarter performance and the current trends in our business, I want to provide an update on what we've been doing at Glaukos in response to this rapidly changing environment and how we're applying the lessons we've learned to advance our key priorities and to best serve our customers going forward. The response plans we prioritized and implemented over the past several months, including protecting the health and safety of our employees and their families, supporting our customers, preserving jobs globally, protecting core research and development projects and maintaining our strong financial and operating position following the pandemic have allowed us to stay focused and advance our key strategic priorities. As a result, our underlying fundamental prospects remain strong, and we are well positioned to emerge an even stronger, more efficient and more capable company as a result. I want to recognize the resiliency, the dedication and the resourcefulness of our employees around the world who make up the strong foundation of our disruptive franchises in glaucoma, corneal health and retinal disease. Our employees have risen above and beyond the moment in new and creative ways to maintain their important work and move the company, their families and their communities forward. One example that exemplifies this effort was the successful implementation of our new Tier 1 ERP system. During the second quarter, thanks to the creativity, hard work and sacrifice of many employees throughout Glaukos, we successfully went live on Oracle across the entire company while operating in a virtual work environment during a pandemic. This was an essential step in our ongoing preparation for future growth and important achievement of our organization during these unique times. I also want to express our gratitude to our customers around the world who remain dedicated to serving their patients. It's clear providers are committed to adapting their practices through enhanced safety measures to ensure the safe and effective treatment of their patients who are returning for ophthalmic interventions, and we've evolved alongside them. While we're encouraged that many of our field-based sales professionals are being allowed back into accounts that we engage with our customers in person, the complementary virtual engagement of physicians and practices will endure. With this in mind, we have invested in customer-oriented webinars hosted by well-respected ophthalmic surgeons designed to support doctors as they navigate this ongoing crisis. We have developed and implemented new training and educational programs using virtual platforms that provide valuable education resources through many peer-to-peer virtual settings. We have expanded the use of remote online training modules, regional conference calls, virtual interactive case-based tutorials and various other customer support programs. We have identified opportunities to collaborate with ophthalmic practices to manage ongoing cases, placing a variety of digital platforms that help train new surgeons and virtually proctor ongoing cases to ensure procedural proficiency and optimal outcomes. And we have held numerous virtual clinical investigator meetings to help assure patient compliance with clinical trial protocols and drive enrollment efforts where applicable. I'm confident that these efforts have helped deepen our customer relationships and prepare us for the future well beyond COVID-19. During this time, we have also maintained operational resiliency through streamlined manufacturing and assembly processes in order to consistently provide product to our customers who depend on us. I am pleased to say that both of our main sites continue to operate during this period, albeit differently, and our supply chains have experienced minimal disruption to date. Moving on to our financial performance. Net sales in the second quarter were $31.6 million, reflecting the material disruptions to our business discussed during our last call, as health care systems shifted resources to the treatment of COVID-19 and government restrictions on elective procedures and therapies were implemented throughout the world. These restrictions led to the increasing deferral of cataract and keratoconus procedures and global sales trends that troughed in mid-April at approximately 10% of levels achieved prior to the COVID-19 outbreak. Despite the challenges associated with the ongoing pandemic and the material impact to our second quarter net sales, we were pleased by the financial discipline exhibited by the organization in the quarter and encouraged by the increasing month-to-month recovery in our sales trends in May and June as U.S. states and global markets began to reopen and providers began to restart elective procedures. These sales trends were experienced across our U.S. glaucoma, international glaucoma and corneal health franchises, and we exited the second quarter with a revenue run rate that was approximately 80% of pre-COVID averages. Joe will provide additional details on the spending and recovery trends later in this call, but I want to spend a few minutes on how we see the near-term market dynamics and opportunity for Glaukos. Not surprisingly, we continue to see a variety of potential scenarios over the remainder of 2020 that are highly dependent on the virus itself within our key geographies. While the worst is behind us in the vast majority of these scenarios, it is important to note that for elective procedures, local market dynamics continue to matter. For surges and spikes leave many patients to shelter at home regardless of government mandates and lead to an increase in scheduled surgery cancellations and could even result in the temporary closure of facilities. The absolute level of recovery that can be achieved during the ongoing pandemic is also impacted by several downstream considerations that we are monitoring closely. First, primary care visits to optometrists and ophthalmologists are key to diagnosing cataracts, glaucoma and keratoconus. New patient demand headwinds may persist as primary vision care visits are delayed or deferred. Secondly, the sustainability and efficiency of procedural volumes can be impacted by the site of service, site restrictions and operating protocols. In general, we have seen a physician office and ambulatory surgery center settings recovering in a faster clip than hospital-based procedures, as you might expect. With social distancing and other enhanced safety procedures create a modest headwind across all sites on average. As a reminder, all of our glaucoma technologies are used in outpatient surgeries, 80% of which in the United States are estimated to be performed in ambulatory surgery centers. And our Photrexa solution for Keratoconus is primarily performed in the physician's office. Third, a key element of our ability to grow the market is new doctor training in our glaucoma franchise and new Photrexa starts in cornea health. While obstacles exist, we have been pleased with the trends in recent weeks as our commercial organization is beginning to deliver again on all fronts. As you put all this together, we continue to expect that multiple COVID related headwinds and tailwinds will drive a modest recovery from here over the remainder of 2020, that may not ultimately materialize into more normalized levels for cataract and keratoconus procedures until a vaccine or therapeutic solution is in place. But setting these COVID-19 dynamics aside, I am certain that our foundation has only strengthened in recent months. At the end of the day, our commercialized ophthalmic solutions address chronic diseases that only worsen as patients are left untreated. Given the medical necessity of these interventions, we remain confident most of the deferred procedures will ultimately be performed in the future as the pandemic subsides even if it remains difficult to predict the specific timing and slope of this recovery curve. As a testament to the confidence in the future, we want to reassure our stakeholders that we are continuing to invest in our future. We continue to prioritize and advance our near-term clinical pipeline, dry eye and retinal programs during the second quarter and we are gradually restoring many of our other earlier stage initiatives. Our capital position has never been stronger to support these investments. During the second quarter, we successfully completed an offering of convertible senior notes and cap call transactions, raising total net proceeds of $242.2 million. This successful raise fortifies our already strong capital position and fuels us with the financial flexibility to remain on offense to invest in our near and longer-term growth initiatives, expand our global infrastructure, strengthen our pharmaceutical expertise, upgrade our enterprise systems, advance our core R&D programs and support our clinical programs as they progress towards becoming commercial realities. As you know, we believe we have one of the most comprehensive pipelines in ophthalmology, which consists of 13 publicly disclosed programs in various development in clinical stages and another 10 yet to be disclosed development programs also underway. We believe these pipeline programs are robust and will support a healthy new product launch cadence with the potential to significantly expand our addressable market opportunities over the coming years. A number of these pipeline programs are in active pivotal clinical trials, including iStent infinite, Epi-On and iDose TR. For these trials, we continue to work closely with our clinical investigators and the FDA to mitigate any potential impacts due to COVID-19 disruption. Clinical trials for iStent infinite and Epi-On have already been fully enrolled, although COVID-19 has caused some modest disruption in patient follow-up plans, we believe the initiatives we've implemented to ensure study viability are effective. We continue to believe that these product candidates are on track for our previously discussed FDA approval targets of late 2021 and 2022, respectively. For iDose, where COVID-19 led to a temporary pause on new patient enrollment. Our focus has been to reignite the enrollment momentum that we had built prior to the pandemic shutdown. We're encouraged that the majority of investigator sites are now reopening and treating patients, and we continue to analyze enrollment trends and our timeline expectations for potential FDA approval in 2022. We also remain in early preparations for the potential U.S. commercial launch of the Santen Pharmaceuticals PreserFlo MicroShunt, an ab-externo surgical implant for late-stage glaucoma management. We have already begun ramping up our commercial preparations for this promising opportunity following Santen's successful U.S. PMA submission announced earlier this quarter. In addition to these new technologies that we aim to commercialize over the coming years, we are excited to announce that we recently received U.S. FDA supplemental PMA approval for iStent inject W. The iStent inject W builds upon a proven foundation for our 2 stent trabecular micro bypass technology. Featuring enhancements such as wider spent flange, iStent inject W is designed to offer ophthalmic surgeons the same established safety and efficacy of iStent inject, with the added benefits designed to optimize stent visualization while maintaining a truly microscale footprint, streamlined implantation and delivering procedural predictability. We're excited about the U.S. commercial prospects for iStent inject W, based upon the positive market receptivity and surgeon feedback garnered in select international markets where iStent inject W has already been launched, including in Germany and in Australia. This next-generation product will supersede the current iStent inject device globally, and we intend to commercialize initial -- or commence initial commercial launch activities in the U.S. later this year. We are also planning to commence a broader European commercial launch of iStent inject W later this year. This adds to a number of recent accomplishments in our international markets that position us for long-term growth including iStent inject regulatory approval in Japan, standalone indication approval in Australia and continued progress across many of our key market access initiatives. On the corneal health front, I am extremely pleased with the integration progress as we execute on our corporate milestones and commercial strategies. We continue to execute on the commercial integration plans through cross-functional trading, key account targeting and market segmentation deployment, and we are seeing benefits of these efforts. Within market access, our team in conjunction with our customers has made considerable progress as they work with providers and payers to optimize the Photrexa reimbursement landscape, train office staff on claims and contractual processes, and expand our ARCH claims program. While we remain in the early stages of unlocking the combined organization's full potential, we are encouraged with the market's receptivity to our fully integrated, expanded commercial organization and the customer-friendly initiatives we've introduced. In summary, I am proud of the actions we've taken as an organization to navigate through the COVID-19 pandemic and support our customers, clinical investigators and employees over these last -- these past several months. These actions leave us well positioned for a strong recovery going forward, and I am confident that the longer-term fundamental prospects of our business remains strong as we seek to create a unique strategic vision care leader building thriving franchises in glaucoma, corneal health and retinal disease with novel therapies that do disrupt conventional treatment paradigms, improve patient outcomes and create new robust markets and opportunities. So with that, I'll turn the call over to Joe to discuss our second quarter 2020 financial results. Joe? -------------------------------------------------------------------------------- Joseph E. Gilliam, Glaukos Corporation - CFO & Senior VP of Corporate Development [4] -------------------------------------------------------------------------------- Thanks, Tom. As a reminder, I will be discussing our financial performance on a non-GAAP or pro forma basis and will summarize our GAAP performance later in my prepared remarks. I encourage each of you to review our GAAP to non-GAAP reconciliation, which can be found in today's press release as well as the Investor Relations section of our website. Similar to last quarter, I will attempt to provide brief perspectives on our second quarter, estimates of our current operating performance and where possible, build upon Tom's views on how we expect things to unfold as we progress over the remainder of 2020. Glaukos net sales for the second quarter of 2020 were $31.6 million. As we discussed on our prior call, procedures came to a virtual halt in nearly all of our major direct markets globally as we entered April, where we experienced a performance trough that was approximately 10% of our pre COVID levels. We were encouraged with month-to-month recovery trends in May and June, exiting the second quarter with a revenue run rate that was approximately 80% of pre COVID daily averages. Now turning to our U.S. glaucoma franchise specifically. Our second quarter U.S. glaucoma sales were approximately $18.3 million. To put this in the same context as the overall business, our U.S. glaucoma revenues troughed in April at approximately 3% of our prior daily averages before recovering in May and June, and we exited the second quarter at approximately 80% of our pre COVID daily averages. Internationally, our glaucoma franchise delivered second quarter sales of approximately $6.7 million. The COVID-19 impact to our international glaucoma business has varied by market. But our overall performance reached an April trough of approximately 25% of our pre-COVID daily averages. During the quarter, we experienced the most stability in Japan and the recovery we experienced in May and June was broad-based with the exception of Brazil, where the COVID situation remains challenging. Our international glaucoma revenues exited the second quarter at approximately 65% of our pre-COVID daily averages. In corneal health, second quarter net sales were $6.6 million. The corneal health business, which we believe benefits from a younger patient population and physician office-based therapy, experienced an April trough of about 20% of pre-COVID daily averages. The second quarter performance was almost entirely driven by U.S. Photrexa sales of $5.2 million. But we were also very pleased to see continued strength in new U.S. starts late in the second quarter, an early but continued sign of the synergistic benefits of our Avedro transaction. Our corneal health revenues also recovered in May and June and we exited the second quarter at approximately 85% of our pre-COVID daily averages. Going forward, we are encouraged by the recovery trends in virtually all of our key geographies and therapeutic areas. Having said that, we recognize the present environment remains fluid and uncertainties exist. As such, we remain cautious on the magnitude and pace of the near-term recovery from here. As Tom mentioned, the environment and logistics for our customers from a new patient consultation and surgery perspective may have an impact, and some patients, particularly the elderly, may continue to wait as long as possible. Our non-GAAP gross margin in the second quarter was approximately 78% versus 87% in the same quarter in 2019, which largely reflects the impact of fixed overhead costs that are not absorbed into inventory and the lower revenue base achieved in the second quarter. It is worth noting that our non-GAAP adjustments to COGS do include substantial adjustments related to the Avedro acquisition accounting. Our overall non-GAAP operating expenses were approximately $52.3 million in the second quarter of 2020, down 18% sequentially compared to the first quarter. As noted on our prior call, we moved quickly in late March as the COVID-19 situation unfolded to implement significant temporary cost savings initiatives. Our leadership and employees responded globally and displayed strong financial discipline throughout the quarter. These savings are a combination of discretionary and variable expenditures, of course, and are not necessarily meant to be permanent, but were designed to preserve jobs and core R&D programs during this period. Going forward, we expect our operating spend levels to tick back up over the remainder of this year as we remove some of the temporary cost-cutting initiatives and restore expansionary spending. Our non-GAAP SG&A expenses in the second quarter were approximately $33.6 million, down 18% sequentially compared to the first quarter, and our non-GAAP R&D expenses in the second quarter were approximately $18.6 million, down 19% sequentially compared to the first quarter. We finished the second quarter with a non-GAAP operating loss of $27.6 million and a non-GAAP net loss of $27 million or $0.61 per diluted share. Our GAAP net loss was $39.9 million or $0.90 per diluted share for the second quarter of 2020. We invested in approximately $2.7 million of capital expenditures in the quarter. Lower than our initial plans as we temporarily deferred a significant portion of our planned 2020 spend, particularly those related to facilities expansion and consolidation. Looking ahead, we expect our capital expenditures to increase substantially over the next 4 quarters as we move forward with those facilities plans. As of June 30, 2020, we had cash, cash equivalents, short-term investments and restricted cash of approximately $404 million, which includes total net proceeds of approximately $242 million from our senior convertible note offering and cap call transactions compared to $173 million at the end of the first quarter 2020. As Tom mentioned, during the second quarter, we completed an offering of senior convertible notes and cap call transactions. The 7-year notes will bear interest at a rate of 2.75% per year and mature on June 15, 2027, unless earlier converted, redeemed or repurchased. The initial conversion price for the notes is approximately $56.10 per share of Glaukos common stock. However, in connection with the pricing of the notes, we entered into cap call transactions at a cap price of $86.30, which represents a premium of 100% over our $43.15 closing price at the time of the transaction. Finally, we have tried to provide insights where possible in how we were thinking about the range of potential outcomes for the third quarter and the remainder of 2020. But we will not be providing updated guidance today as a specific extent or duration of the impact of the COVID-19 outbreak on our future financial and operating results remains unknown. With that, I'll now turn things back to Tom for a few closing remarks. Tom? -------------------------------------------------------------------------------- Thomas William Burns, Glaukos Corporation - CEO, President & Director [5] -------------------------------------------------------------------------------- All right. Thanks, Joe. The progress we are making to advance our key strategic priorities reflects the commitment of our teams to rapidly adjust during the COVID-19 pandemic and to ensure we are moving our company, customers and communities forward. While the extent and duration of the current challenges are difficult to predict, I am confident we will manage through the current situation with the same resiliency and effectiveness as we managed through past challenges leaving us well positioned for a strong recovery going forward. We continue to advance our vision to establish Glaukos as a unique strategic vision care leader with tremendous potential for long-term growth and profitability. So with that, I'll open the call to questions. Operator? ================================================================================ Questions and Answers -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- (Operator Instructions) Your first question comes from the line of Brian Weinstein with William Blair. -------------------------------------------------------------------------------- Brian David Weinstein, William Blair & Company L.L.C., Research Division - Partner & Healthcare Analyst [2] -------------------------------------------------------------------------------- Curious, what have you seen as far as competitive dynamics post kind of reopening here? Have the dynamics in the field changed either in glaucoma or corneal health? And are there any different tactics that are being used? Or what is the basis of the competition? How has that changed? And has pricing changed at all as a result of potentially some additional competition as well? -------------------------------------------------------------------------------- Chris M. Calcaterra, Glaukos Corporation - COO [3] -------------------------------------------------------------------------------- Brian, this is Chris. As it relates to competition, it's really stable and unchanged since the last time that we spoke. More of the same. -------------------------------------------------------------------------------- Joseph E. Gilliam, Glaukos Corporation - CFO & Senior VP of Corporate Development [4] -------------------------------------------------------------------------------- And from a pricing perspective, really a similar answer. Over the course of the quarter, we've seen very little change in pricing versus the prior periods. -------------------------------------------------------------------------------- Brian David Weinstein, William Blair & Company L.L.C., Research Division - Partner & Healthcare Analyst [5] -------------------------------------------------------------------------------- Great. And then just to confirm a comment that you guys made on iDose and trying to -- I think you said reignite the momentum and the enrollment there. Can you talk just about where you guys were in that enrollment process prior to COVID-19? And I think you made the comment about analyzing trends and thinking about what that might mean for FDA approval in 2022. Is there a possibility that, that then is going to get pushed out a bit as a result of this? Or do you think you can make up these lost patients? -------------------------------------------------------------------------------- Thomas William Burns, Glaukos Corporation - CEO, President & Director [6] -------------------------------------------------------------------------------- Brian, this is Tom. And so what I've said before, I'll repeat here, I mean we were rapidly moving toward concluding the clinical trial, really ahead of our expectation before the transient disruption caused by COVID-19. Clearly, that shut down the momentum. We now have reengaged. Most of our clinical investigators are reengaged. They're facing a little bit of headwind, as you can imagine, of patient reluctance to return as well as serving their own needs by doing pent-up cataract procedures going forward that have been in the queue. So we're monitoring closely, and we're working hard to reestablish the momentum that we had prior to COVID-19 .we clearly are moving hard to be able to establish ourselves, put ourselves in a position to meet that 2022 timeline, and we're going to continue to try to reignite this to move this forward as fast as we can. I will be watching as closely as you can imagine, over the next couple of quarters, and I will keep investors more than adequately informed. -------------------------------------------------------------------------------- Operator [7] -------------------------------------------------------------------------------- Your next question comes from the line of Robbie Marcus with JPMorgan. -------------------------------------------------------------------------------- K. Gong, JPMorgan Chase & Co, Research Division - Analyst [8] -------------------------------------------------------------------------------- This is actually Allen on for Robbie. I had a question kind of on trends going forward and a little bit of color on the quarter itself. One of the dynamics that we've seen play out at some other med tech peers is a decent amount of strength in the quarter being driven by procedures that may have been deferred from late in March or even from earlier in the quarter. So is there any color or like qualitatively or directionally that you can provide on how much of the outperformance in the quarter came from those kind of deferred procedures versus natural growth? -------------------------------------------------------------------------------- Joseph E. Gilliam, Glaukos Corporation - CFO & Senior VP of Corporate Development [9] -------------------------------------------------------------------------------- Allen, it's Joe. Yes, I'll take that, if Chris wants to add anything, he can. I think part of the qualitative caution that you hear from us in the prepared remarks, around the path forward from here is really born from the question you're asking. I think the mix over the course of the quarter, not surprisingly, was weighted towards the backlog of patients that had existed heading into COVID. More than new patient flow, which makes sense, of course, when you think about it, given the foot traffic trends for primary vision care visits, optometrists and ophthalmologists. So while we've been encouraged by a continued week-over-week and month-over-month recovery in new patient levels, the quarter still saw a lot more of that backlog contribute to it than new patient volumes. -------------------------------------------------------------------------------- K. Gong, JPMorgan Chase & Co, Research Division - Analyst [10] -------------------------------------------------------------------------------- Got it. And I guess, like when we look at the results that you got from TREX, obviously, it looks like a very strong quarter from them. When we look forward, how has COVID-19 really kind of delayed, I guess, your ability to really integrate that sales force? Or would you say that other than kind of reduced physician demand as they handled COVID, the integration has largely gone as planned? Or were there delays to that? And should we expect kind of better results or like more integration benefit in the back half of the year and into 2021? -------------------------------------------------------------------------------- Chris M. Calcaterra, Glaukos Corporation - COO [11] -------------------------------------------------------------------------------- Allen, this is Chris. I'll address that question. There were 2 questions in there, and I'm going to start with the integration one. We're very pleased with the integration. And if anything, COVID has given us the opportunity to really solidify that integration. It gave us an opportunity to really train up all the sales reps both the corneal health sales managers as well as the Glaukos representatives. It helped us from a planning perspective in terms of targeting and mapping out our strategy. And then on the customer side of things because that patient base is -- tends to be younger, and it's done in the clinic versus an ambulatory surgery center or a hospital. That business has been less impacted than the glaucoma business. So physicians were able to continue to do corneal cross-linking on keratoconus patients. And I think you've seen that in our numbers. So in short, that business is doing well. And we believe that we've integrated that business meeting our needs and in fact, maybe even exceeding our needs from an integration standpoint. We're quite pleased. -------------------------------------------------------------------------------- Operator [12] -------------------------------------------------------------------------------- (Operator Instructions) Your next question comes from the line of Matt O'Brien with Piper Sandler. -------------------------------------------------------------------------------- Andrew William Stafford, Piper Sandler & Co., Research Division - Research Analyst [13] -------------------------------------------------------------------------------- This is Drew on for Matt. I just wanted to follow up a little bit on your comments on the diagnosis and the backlog. Do you have a sense for whether the routine eye appointments where you diagnose glaucoma, whether those have started to come back at a similar pace to the deferred procedures, which have admittedly bounced back a little bit quicker than we were anticipating? And then, I guess, I understand your comment that most of these procedures were coming from the backlog. So do you have a sense of how much of that backlog has been worked down at all at this point in time? -------------------------------------------------------------------------------- Joseph E. Gilliam, Glaukos Corporation - CFO & Senior VP of Corporate Development [14] -------------------------------------------------------------------------------- Drew, it's Joe. So I'll start by saying, I think, first of all, with respect to the backlog, that's what you would expect, of course, right? I mean, I don't want to minimize the fact that the surgeons and these practices were going to prioritize the backlog first, given those patients were already either on the books or had present themselves to be put on the books for surgery. So that component of the overall quarter isn't a huge surprise to us. I can't tell you exactly where they're at in terms of working through that backlog because, candidly, that continues to be a moving target as we go forward here, right? I mean, I think every day that goes by, these patients are in need of treatment. So that will probably continue to persist for some period of time here going forward. And so the comment really was just that underneath that, we watch very closely in conversations with practices and physicians and our sales force. What is that trend of new patients walking in the door to have vision correction or diagnosis performed? And with that, we were encouraged over the course of the quarter, similar to what you'd expect and probably what you're seeing from other companies who would have exposure to optometrist or the primary care channel. I think the trends are all positive there, but they're not yet to a place where they're driving the overall demand for the procedures that are getting done. -------------------------------------------------------------------------------- Andrew William Stafford, Piper Sandler & Co., Research Division - Research Analyst [15] -------------------------------------------------------------------------------- Okay. That makes perfect sense. And then on the reimbursement front, there were some updates out this week with the outpatient rule and physician. Well, just curious if you feel anything's changed from your perspective or any of the competitive products, maybe some of those tissue displacement products in this space? -------------------------------------------------------------------------------- Thomas William Burns, Glaukos Corporation - CEO, President & Director [16] -------------------------------------------------------------------------------- Yes, Drew, this is Tom, I'd be happy to respond to that question. So if you've seen the agenda, we're actually really pleased by the agenda that's coming out for the October RUC committee meeting and there are decisions coming out of that meeting that could substantially aid the business. I think the first is the fact that there will be consideration for an independent standalone category III code for our trabecular bypass product line. And if the decisions made in October, that Category III code should become effective in 2021, which would be prior to the potential launch of our iStent infinite. So the timing could be quite fortuitous for us. I think the important thing there, too, is that because it's an independent standalone Category III code, it will be based on the full perioperative procedure. And as you know, in the past, we haven't driven towards a transition to a Category I because we didn't want the RVUs to be based more on the ancillary placement of the trabecular bypass device alone. We wanted the full perioperative procedure. So this is another major opportunity if the RUC committee moves forward with an independent standalone code. Likewise, and perhaps even more importantly, you'll see as well there's consideration for an independent standalone code for iDose. And so this is something that we have had as a major target for us to establish an independent code on the CPT side. It'd be a Category III code that then eventually would be consigned or joined with a HCPCS code, a J code for the payment of the device. And this action fulfills our target of creating a separate CPT code if it's approved and will really put us in a strong position moving forward for the commercial launch of iDose. And importantly, too, by having 2 separate codes, if this is the initiative and outcome of this RUC meeting. We'll be able in the future to enable surgeons to do combinatorial treatments of using iStent inject prosthetic devices with iDose in combination for the treatment of more moderate to advanced glaucoma. So this is where we've been headed for some time. You can imagine we're pleased with that. And in addition too, there'll be a formalization, it appears a decision made on a Category I code for combination cataract procedures. If that goes forward as well, that will assure even more predictability and reimbursement from payers moving forward. And you can be assured if that moves forward as well, we'll be working with CMS and with the American Academy of Ophthalmology, to really establish and to assure fair professional and facility payments over the course of the next several months. So all in all, it remains to be seen. I like what's on the agenda. I think our prospects are fortuitous. I'm hopeful for some very positive outcomes for the company. -------------------------------------------------------------------------------- Operator [17] -------------------------------------------------------------------------------- Your next question come from the line of Larry Biegelsen. -------------------------------------------------------------------------------- Kevin Michael Farshchi, Wells Fargo Securities, LLC, Research Division - Associate Analyst [18] -------------------------------------------------------------------------------- This is Kevin on for Larry. Two follow-ups on reimbursement as well. So in the outpatient proposed rule, you actually have cataract cut about 10%. I was curious how you're thinking about the implications of that on the glaucoma business. Could it actually be incremental for adoption of MIGS as some of these facilities and docs try to offset the cut? And then I have just one follow-up. -------------------------------------------------------------------------------- Chris M. Calcaterra, Glaukos Corporation - COO [19] -------------------------------------------------------------------------------- Sure. Kevin, this is Chris. This is similar to the 2020 proposed rule where cataract went down and combination cataract plus trabecular bypass went up. So we're pleased that in the ASCs, the proposal went up 4%. And in the hospital market, it went up 2%. I would categorize that in terms of the play with cataract versus the play with cataract plus trabecular bypass is neutral to positive. It certainly doesn't hurt us. And it certainly makes a compelling argument for adoption of mix. -------------------------------------------------------------------------------- Kevin Michael Farshchi, Wells Fargo Securities, LLC, Research Division - Associate Analyst [20] -------------------------------------------------------------------------------- Chris, that's helpful. And then you guys have both infinite and MicroShunt launching in the U.S., hopefully in 2021. Do you expect both of those products to be reimbursed as soon as they're approved? And is there one product where the reimbursement is more favorable amongst the 2? And then lastly, do you plan to kind of provide some more updated economics on MicroShunt now that we have that visibility? -------------------------------------------------------------------------------- Chris M. Calcaterra, Glaukos Corporation - COO [21] -------------------------------------------------------------------------------- Okay. So Kevin, this is Chris. I'll start with the first part. We don't -- we see the infinite and the MicroShunt as being very complementary of each other. And we see the infinite being used prior to utilization of the MicroShunt. The MicroShunt, in terms of reimbursement, there's already an established code for that. It's a healthy reimbursement, and it is a Category I. As it relates to the infinite, as Tom alluded to in his comments to the prior question, that is something that is now on the agenda for a Category III code for infinite so that remains to be seen as to what that code will be and what it will be paid. -------------------------------------------------------------------------------- Joseph E. Gilliam, Glaukos Corporation - CFO & Senior VP of Corporate Development [22] -------------------------------------------------------------------------------- And then with respect to the economics, I think as we said before, we'll continue to work with Santen around the degree of specificity that they're comfortable with us sharing. What I will say or reiterate based on past comments is that we are taking control of the product for the U.S. market, which typically will lead to booking the revenues fully and then underneath that, there is a typical transfer price as well as some economic sharing around activities that they are performing in the U.S. market. So we're hopeful that we've designed it in a way that it will look like a product that we would have developed on our own from a P&L perspective with us booking the entire revenues. -------------------------------------------------------------------------------- Operator [23] -------------------------------------------------------------------------------- Your next question comes from Jon Block with Stifel. -------------------------------------------------------------------------------- Jonathan David Block, Stifel, Nicolaus & Company, Incorporated, Research Division - MD & Senior Equity Research Analyst [24] -------------------------------------------------------------------------------- First one for me, maybe Tom or Chris, just on inject W, is there anything there on pressure drops to improve the IOP? Or is it strictly just more tool of ease of use? I guess as a follow-on to that same question, what does it entail? In other words, is there retraining of the docs? And I guess also, is there a pricing opportunity specific to inject W? And then I've just got a follow-up. -------------------------------------------------------------------------------- Chris M. Calcaterra, Glaukos Corporation - COO [25] -------------------------------------------------------------------------------- Okay. John, this is Chris. This was approved on the heels of iStent inject and that data. So we can't really claim that there's any IOP drop. What this is, is an enhancement to iStent inject. It is a product that will eventually replace iStent inject. And the product itself gives you better visibility and more predictability. And that is because of the, in large part, a larger flange, which is the portion of the stent that sits in the anterior chamber and some enhancements to the injector itself. So we're looking for an even better experience for the ophthalmologists beyond what they've already experienced with iStent inject. And so it's just basically a product improvement. And as such, it will be priced at the same price as iStent inject. -------------------------------------------------------------------------------- Jonathan David Block, Stifel, Nicolaus & Company, Incorporated, Research Division - MD & Senior Equity Research Analyst [26] -------------------------------------------------------------------------------- Got it. Very helpful. And the second question, which might have 2 questions. Joe, I thought I heard a 16.5 U.S. glaucoma number, which is down roughly 65% year-over-year. It's tough to gauge, but you guys have the best line of sight. So maybe your thoughts on the market, was the market down 65%? Or essentially, how did you do with share, do you believe? And then, Tom, for you or maybe for you just on DURYSTA or bimatoprost. I don't know, seemingly the FDA had to step back on the label. Your thoughts if that's a future opportunity for you if it's really just sort of onetime use only. -------------------------------------------------------------------------------- Joseph E. Gilliam, Glaukos Corporation - CFO & Senior VP of Corporate Development [27] -------------------------------------------------------------------------------- John, I couldn't quite understand the number you gave, but just to clarify, on the U.S. glaucoma business, I think is what you were asking about, that was $18.3 million in the second quarter. And so the math may be a little bit different than what you were saying in terms of the sequential or year-over-year performance. But having said that, I think tying back to what Chris said earlier, our sense is that through this period of time, the market share dynamics have remained pretty stable. So that would imply that, obviously, what we're seeing here from a performance perspective should be pretty representative of what is happening in the overall market. -------------------------------------------------------------------------------- Thomas William Burns, Glaukos Corporation - CEO, President & Director [28] -------------------------------------------------------------------------------- And John, I'd be happy to take the DURYSTA question. So as you know, they've been approved, and they're in kind of a soft launch here in the United States. Again, with respect, and in respect to the product, I like the fact that the product validates the intracameral use of a prostaglandin to be able to treat glaucoma. I think that's exceedingly important for us moving forward. I think because it is a biorotable, again, it's limited duration. You can only pack so much API into that matrix in order to deliver the product over a period of time. So it's limited generally to a 3-4 month duration of activity. The fact that it's non-anchored, as you all know, has been, I think, troubling from the perspective of some surgeons. And the rates that they've seen in terms of endothelial cell loss. And obviously, that transpired into a more limited label from the FDA, which restricts its usage to a single-use only. So these are things that I think are going to be objectively, would be problematic for any company to handle moving forward. I think what's important is, one, we got a validation of the concept, there clearly is an appetite for a longer duration product intracameral. We're seeing that in spades in the marketplace. That's very important. And I think most important, right now, there is a miscellaneous J code, which is governing their pricing. The prices that I'm seeing out there are fairly robust. I don't want to quote them here until they actually have their J code, their final J code in place in October. But you can imagine that will be a powerful predicate for us moving forward and how we price our product and the value proposition we can create for this company. So for all those reasons, I like our position a lot. I'm pleased that they've launched the product. I think we're in an excellent position to be able to commercialize our product coming here in the next several months. -------------------------------------------------------------------------------- Operator [29] -------------------------------------------------------------------------------- Your next question comes from the line of Chris Cooley with Stephens. -------------------------------------------------------------------------------- Christopher Cook Cooley, Stephens Inc., Research Division - MD [30] -------------------------------------------------------------------------------- Maybe we just shift gears a little bit and focus on corneal health for a moment. Could you possibly provide us some additional color there around the installed base? And some of the -- maybe give us some examples of what you're seeing as in Italy, it's COVID-19 restricted, but what you're seeing in terms of the accounts that for existing MIGS users and also had the Avedro system in place. Just looking at the 5.2, Photrexa number, the 6.6, obviously, you don't assume that there are that many systems being absolutely sold. But not sure how many are being placed on some type of utilization standpoint. So some color there would be helpful. Then I've got one quick follow-up. -------------------------------------------------------------------------------- Joseph E. Gilliam, Glaukos Corporation - CFO & Senior VP of Corporate Development [31] -------------------------------------------------------------------------------- Sure, Chris. It's Joe. I'll start and then Chris can jump in here. We obviously -- as a part of this, we've stopped giving the specific number of new starts in any given period of time. But as I indicated in my prepared remarks, we actually were pleased to see that activity rebound really at the end of the quarter in June, and quite frankly, continue to July, where as our accounts were -- and our commercial organization was getting access again, to the customer base, we did start to see new starts play a role again towards the end of part of the quarter -- end of the quarter. But beyond that, we haven't given much more specific granular color. -------------------------------------------------------------------------------- Chris M. Calcaterra, Glaukos Corporation - COO [32] -------------------------------------------------------------------------------- And Chris, this is Chris, and I'll add a little color to that. I'm very pleased with how this is playing out. Early on, when we announced the Avedro acquisition, we talked about eliminating the box as an impediment to the sale. That's not to imply that we are giving the equipment away. It's just to imply that we were more focused and still are more focused on the procedural component itself and the sale of Photrexa. It's a fairly inexpensive box to manufacture, and we are taking the position of being aggressive in getting those boxes placed through a variety of options to the practitioner. Anecdotally, their doctors are increasing their utilization because we're knocking down the barriers that -- and challenges that come with a newly implemented J code. The reimbursement is much more stable. Right now, we've got 96% of the lives out there covered, and that is becoming much smoother. Our outreach programs to optometry are going very well. And we believe that, that's leading to more patients being referred into practices that are doing this procedure. So all in all, we feel very good about the acquisition, and we feel good about the synergies of Glaukos and Avedro together. -------------------------------------------------------------------------------- Christopher Cook Cooley, Stephens Inc., Research Division - MD [33] -------------------------------------------------------------------------------- Really appreciate that color. And then I also apologize if this was covered earlier, jumping between a couple of calls here. But I believe you mentioned that you had a trough of basically down 97% versus pre-COVID levels back in April for the U.S. glaucoma franchise and you exited the quarter at out 80% of pre-COVID levels. I may have missed this, but if not, I'll try any directional commentary you can provide there on the month of July and what you've seen transition into August? I'm assuming it's continuing to improve or stable, but any color there on the domestic glaucoma franchise would be appreciated. -------------------------------------------------------------------------------- Joseph E. Gilliam, Glaukos Corporation - CFO & Senior VP of Corporate Development [34] -------------------------------------------------------------------------------- Yes, Chris, it's Joe. It actually hadn't been asked. So we'll add that in there. I think the trends post end of the quarter, so in July and into the very beginning part of August have been what I'd characterize as stable to positive overall. The progress has probably been more weighted towards the continued recovery internationally. But in all the businesses, we've seen stability to positive overall trends. So of course, be careful when you think about extrapolating that, you've heard our caution with respect to the COVID related dynamics going forward. But we've been pleased with the stability of the trends that came out of the quarter and have existed thus far. -------------------------------------------------------------------------------- Operator [35] -------------------------------------------------------------------------------- Your next question comes from the line of Ravi Misra with Berenberg Capital Markets. -------------------------------------------------------------------------------- Zhilin Long, [36] -------------------------------------------------------------------------------- This is Iris on for Ravi. So just a few follow-up question in terms of recovery. So we've talked about the backlog. When we think about patients, especially new patients, so how comfortable are they coming into the office and schedule a surgery based on your conversation with physicians? Any color on that would be helpful. -------------------------------------------------------------------------------- Chris M. Calcaterra, Glaukos Corporation - COO [37] -------------------------------------------------------------------------------- Iris, this is Chris Calcaterra. That is a concern. Let's talk about glaucoma first, where the majority of these patients are elderly and they are more susceptible to COVID-19 and so it is fair to say that some of these patients are concerned about coming in. This is a procedure that can be delayed, although they'll need to do it, but some of them are choosing to stay at home. Many of them are come back -- are coming back, and we're encouraged by that. But we want to be cautious as we look to the future in terms of this recovery. As it relates to the corneal health side of things, we would say that, that is not as concerning in that the patients seem to be coming back because of the age dynamics, the majority of these patients being younger are more willing to come into the practice to get the procedure done. -------------------------------------------------------------------------------- Zhilin Long, [38] -------------------------------------------------------------------------------- That's helpful. So a follow-up question on competition. So this week, we saw that you cleared the joint venture formed by Verily and Santen. So and the joint venture is focused on developing ophthalmology devices. I'm just wondering if you guys can talk a bit about your view on competition in general and how you think the competition -- the competitive landscape will evolve and how Glaukos could stay competitive in the long run? -------------------------------------------------------------------------------- Joseph E. Gilliam, Glaukos Corporation - CFO & Senior VP of Corporate Development [39] -------------------------------------------------------------------------------- Yes. I think from a competitive standpoint and the transaction you're mentioning, I think, is much earlier stage in Europe. We've been on record. Obviously, we've talked a lot about the near-term competitive dynamics associated with some of the devices that are plying within glaucoma surgery. I think we've talked about on the corneal health side, the sort of free running that we have there at the moment. The good news is, when you look from a macro standpoint, competitively, the process to bring a new product to market is a long and expensive one, right? And so we have a fair amount of visibility in what is downstream from the products that are currently on market. And we feel pretty confident about both our current product portfolio as well as what we've got in the pipeline to continue to drive our business into the future. -------------------------------------------------------------------------------- Operator [40] -------------------------------------------------------------------------------- Your next question comes from the line of Joanne Wuensch with Citi. -------------------------------------------------------------------------------- Matthew Henriksson, [41] -------------------------------------------------------------------------------- Hi this is Matt Henriksson in for Joanne. I'll start with the Ivantis litigation. Are there any updates or commentary that you may have? -------------------------------------------------------------------------------- Thomas William Burns, Glaukos Corporation - CEO, President & Director [42] -------------------------------------------------------------------------------- Matt, I'd be happy to answer. This is Tom. And so just to give an update, many of you are probably aware that our July -- our trial date, which was previously scheduled for July 28 of this year. Due to COVID-19 was deferred until March of next year. So we were prepared -- fully prepared to go to trial in July, and we'll be fully prepared to go to trial in March of next year. What I would say is that we've had -- I'd ask you to check the 10-Q for the second quarter, which will be coming out momentarily. You'll see that there have been several motions that recently have been adjudicated by the judge in the case. We believe that these have been substantially favorable to Glaukos and continue to validate our confidence in our approach to this trial and to its outcome. And so I'd ask you to review those to see kind of where we are at this stage. But again, the trial has been deferred now until March of next year. -------------------------------------------------------------------------------- Matthew Henriksson, [43] -------------------------------------------------------------------------------- Great. And then my last question just is a confirmation question. You talked about for the iDose trial that you're reigniting momentum, investigator sites are open and they're re-engaging with patients. But could you confirm if any new patients have been enrolled since those sites have been reopened? -------------------------------------------------------------------------------- Thomas William Burns, Glaukos Corporation - CEO, President & Director [44] -------------------------------------------------------------------------------- Well, yes, I certainly can. I mean we certainly have enrolled new patients. And so what we're really monitoring Matt is the pace of how we can create and reach the inflection point, which we had generated prior to COVID-19. So our clinical team is prolific, recruiting and making this happen. We are facing, as we talked about, the headwinds you'd expect, patient reluctance to engage in a new trial or to return. And obviously, this backlog in pent up demand as surgeons seek to be able to clear this. So I am encouraged at the number of clinical investigators that have reengaged or continue to watch the slope of that reengagement. And again, keep everyone adequately informed over the next couple of quarters, how we're proceeding. -------------------------------------------------------------------------------- Operator [45] -------------------------------------------------------------------------------- Your next question comes from the line of Ryan Zimmerman with BTIG. -------------------------------------------------------------------------------- Ryan Benjamin Zimmerman, BTIG, LLC, Research Division - MD & Medical Technology Analyst [46] -------------------------------------------------------------------------------- Right. So just a couple for me. On the iStent infinite time, you talked about, I think, and can check, correct me if I'm wrong, but being on the market, I think, potentially late 2021 and if recall, the trial has a 12-month endpoint. So I'm just trying to understand the incremental time from now the follow-up period, submission and then the market -- being on the market, do you have an adequate window, I guess, in terms of the FDA's review for that product to get to that 2021 timeline. And you can correct me if I'm wrong on some of my assumptions there on the timing. -------------------------------------------------------------------------------- Thomas William Burns, Glaukos Corporation - CEO, President & Director [47] -------------------------------------------------------------------------------- Yes. No, that's okay, Ryan. And so yes, we have stated that we are targeting approval for late 2021. And we state so obviously, fully understanding the chronology of what it takes to get there, right? So we finished enrollment for this trial. As you recall, in October of last year then fast forward 12 months, which is the primary endpoint for adjudication of the trial. We'll need to lock the database down and prepare the submission. We'll do so in an expedited fashion, and we'll submit. So we're hopeful the FDA as well sees the gravity of treating these late-stage patients and the urgency of approval. And we remain convinced that we can hit a target of late 2021 with iStent infinite. -------------------------------------------------------------------------------- Ryan Benjamin Zimmerman, BTIG, LLC, Research Division - MD & Medical Technology Analyst [48] -------------------------------------------------------------------------------- Okay. And there's no potential for that to come earlier. I guess my question is, what are you assuming for the review of that right now? -------------------------------------------------------------------------------- Thomas William Burns, Glaukos Corporation - CEO, President & Director [49] -------------------------------------------------------------------------------- Well, I think if you just look at the numbers that I laid out in the front of you, it's pretty easy to see. But typically, if you look at past transactions. The FDA typically will look at these and approve a product after a formal submission anywhere in the 6- to 12-month time period. And just for basis, yes. Yes. We had -- I think we were 6 or 7 months or so following PMA submission for the approval for iStent inject. -------------------------------------------------------------------------------- Ryan Benjamin Zimmerman, BTIG, LLC, Research Division - MD & Medical Technology Analyst [50] -------------------------------------------------------------------------------- Yes. Okay. So there might be some potential there. Because you have had some pretty quick approvals. Okay. And then the next question is around -- you had -- I think a couple of MACs last quarter raised their rates. I think it was Noridian, if I'm not mistaken. And so one, what impact maybe this is -- best directed for Chris, what impact did that have on utilization in the midst of all of this noise in the pandemic and where have others filed suit or any commentary around the pro fee rate from some of the MACs? -------------------------------------------------------------------------------- Chris M. Calcaterra, Glaukos Corporation - COO [51] -------------------------------------------------------------------------------- Ryan, this is Chris. And you are correct, Noridian, which is out here on the West Coast primarily, raised their pro fee from roughly $225 up to $325, roughly, a 44% increase. And that happened in late March. So right in the midst of COVID, it's really been difficult given all the dynamics of COVID to determine what kind of impact that has had. Having said that, we believe that, that will help to initiate particularly new starts for surgeons who are interested in iStent inject and MIGS surgery. But it's just far too early and too dynamic of a situation to determine what kind of impact that's had since it was announced. -------------------------------------------------------------------------------- Operator [52] -------------------------------------------------------------------------------- Your next question comes from the line of Anthony Petrone. -------------------------------------------------------------------------------- Anthony Charles Petrone, Jefferies LLC, Research Division - Healthcare Analyst [53] -------------------------------------------------------------------------------- A couple for you here. One on procedure location. I'm just trying to get a sense of generally a high level in the U.S., what percent of iStent, iStent inject procedures today, are ASC versus hospital in-patients. So just trying to get a sense of if COVID continues here, and folks are staying out of the hospital, what that presents in terms of a headwind. And then on iStent inject W, you have the approval in the U.K. in April it looks like the label there is standalone and cataract combo. So I just want to confirm if, indeed, that is the case. And is that what we should expect for the U.S. as well? And I'll have one quick follow-up. -------------------------------------------------------------------------------- Chris M. Calcaterra, Glaukos Corporation - COO [54] -------------------------------------------------------------------------------- Okay. Anthony, this is Chris. As it relates to procedures in the United States, the breakdown is roughly 85% of those procedures are done in ambulatory surgery centers. And 15% are done in hospitals, which given the current situation, bodes well for us. In terms of W, it is CE marked. So it was not only approved in U.K. but all across Europe. And that indication and that approval of that CE Mark is for standalone and in combination with cataract surgery. It's difficult to assess what percentage is done as a standalone and what's done as a combination in with cataract surgery and it varies by country. But we're quite pleased with the launch of W, we have not released it in all of the countries in Europe, but we have begun to launch it in countries beyond Germany. -------------------------------------------------------------------------------- Joseph E. Gilliam, Glaukos Corporation - CFO & Senior VP of Corporate Development [55] -------------------------------------------------------------------------------- And just to make sure we're clear on the last part of your question, Anthony, I think in the U.S., the approval is for use in combination with cataract surgery, unlike in Europe, where the CE mark covers both. -------------------------------------------------------------------------------- Anthony Charles Petrone, Jefferies LLC, Research Division - Healthcare Analyst [56] -------------------------------------------------------------------------------- Very helpful. And last one for me would just be -- just looking at InnFocus MicroShunt in Europe. Is that a good analog for what we should be thinking about for the U.S. launch? And where is share of InnFocus versus trabeculectomy and other MIGS, just trying to get a sense of how that launch has gone for Santen. -------------------------------------------------------------------------------- Chris M. Calcaterra, Glaukos Corporation - COO [57] -------------------------------------------------------------------------------- Yes. Anthony, this is Chris. There's a number of differences there. One, that's being launched by Santen themselves in Europe. Two, that market in Europe is very different than it is here in the United States. So I'm not sure that you can formulate direct comparisons to the launch in Europe to what we'll be doing here in the United States. It's going to be a bit different. And thirdly, we do not have access to what their numbers are in Europe to even be able to comment to that. -------------------------------------------------------------------------------- Operator [58] -------------------------------------------------------------------------------- Okay. Now back to you, Chris, for closing remarks. -------------------------------------------------------------------------------- Thomas William Burns, Glaukos Corporation - CEO, President & Director [59] -------------------------------------------------------------------------------- Okay. This is actually Tom, and I just want to thank all of you again for your time and attention today. We hope everyone is staying safe, and thank you for your continued interest in Glaukos Corporation. Thanks, and goodbye. -------------------------------------------------------------------------------- Operator [60] -------------------------------------------------------------------------------- This concludes today's conference call. You may now disconnect.