(PRESS RELEASE) MENLO PARK, CA — Sight Sciences, Inc. (Nasdaq: SGHT), an eyecare technology company focused on creating innovative solutions intended to transform standards of care and improve patients’ lives, reported its financial results for the quarter ended September 30, 2021.
Recent Business Highlights
- Generated record third quarter 2021 total revenue of $13.1 million, an increase of 51% compared to the prior year period;
- Expanded gross margin to 84% in the third quarter 2021 versus 70% in the prior year period;
- Received FDA Investigational Device Exemption (IDE) approval for PRECISION, a three-armed combination cataract MIGS randomized controlled trial (RCT) to assess the safety and effectiveness of canaloplasty-alone procedures using the OMNI Surgical System;
- Submitted 510(k) seeking expanded indication for use of TearCare System for dry eye disease due to meibomian gland dysfunction;
- Peer-reviewed publications in Clinical Ophthalmology reported favorable two-year outcomes of standalone use of the OMNI Surgical System in mild to moderate open-angle glaucoma; and in Cornea reported that a single TearCare treatment significantly alleviated the signs and symptoms of dry eye disease in patients with meibomian gland dysfunction based on results from the OLYMPIA RCT;
- The Centers for Medicare and Medicaid Services (CMS) published the final reimbursement rules for CPT code 66174, which is used to report OMNI procedures performed as a standalone (without concomitant cataract surgery) or in combination with cataract surgery, to take effect January 1, 2022. The final rules establish national unadjusted rates for CPT code 66174 of $739 for the physician fee for standalone OMNI procedures, $1,003 for the physician fee for combination cataract OMNI procedures, $1,919 for the facility fee for standalone OMNI procedures in ambulatory surgery centers (ASCs), $2,450 for the facility fee for combination cataract OMNI procedures in ASCs, and $4,000 for the facility fee for OMNI in hospital outpatient departments (HOPDs), standalone or with cataract surgery.
“We are very pleased with our outstanding performance in the third quarter, driven by strong surgeon adoption and utilization of OMNI,” said Paul Badawi, co-founder and Chief Executive Officer of Sight Sciences. “We made significant progress expanding OMNI’s adoption and usage by surgeons in the established MIGS Combination Cataract segment while continuing development of the under-penetrated and substantially larger Standalone MIGS segment. We believe the final rules issued by CMS now more accurately reflect the relative work, skill, and intensity between comprehensive, circumferential canalicular surgery with OMNI versus injections of canal implants. Given the overall clinical and economic value of OMNI and its safety and efficacy profile, we’re very pleased that the final rules support continued and improved patient access to OMNI. Additionally, we submitted a 510(k) for TearCare seeking an expanded indication for use for dry eye disease due to MGD, while also advancing clinical studies to support market access initiatives among Medicare and commercial payors.”
Third Quarter 2021 Financial Results
Revenue for the third quarter of 2021 was $13.1 million, an increase of $4.5 million, or 51%, compared to the third quarter of 2020. Surgical Glaucoma revenue in the third quarter of 2021 was $12.4 million, an increase of 58% compared to the prior year period. The growth was primarily driven by an increase in both the number of facilities ordering OMNI and utilization per ordering facility during the third quarter of 2021 as compared to 2020. Dry Eye revenue in the third quarter of 2021 was $0.7 million, a decrease of 15% from the previous year. This decrease reflected the implementation of more focused customer targeting strategy in the fourth quarter of 2020 that is designed to address and enhance market access to the TearCare System over the long-term. Dry Eye revenues have demonstrated continued strong sequential growth since the beginning of that initiative.
Gross profit for the third quarter of 2021 was $11.0 million compared to $6.0 million for the third quarter of 2020. Gross margin for the third quarter of 2021 was 84%, as compared to 70% in the same period of last year. The gross margin improvement was attributable mainly to OMNI manufacturing cost reductions resulting from transitioning production to high volume, lower cost contract manufacturers and increased revenues covering largely fixed allocated labor and manufacturing overhead.
Operating expenses were $25.1 million for the third quarter of 2021 compared to $13.4 million in the corresponding prior year period, representing an 87% increase. Operating expenses as a percentage of revenues increased from 155% in the third quarter of 2020 to 191% in the third quarter of 2021. The increase in operating expenses was primarily driven by additions to personnel and continued investment in R&D and SG&A to support the Company’s growth, including stock-based compensation of $1.9 million compared to $0.2 million in the prior year period. Additionally, other expense was $2.0 million compared to $0.2 million in the prior year period, due to a final fair value remeasurement of since-exercised preferred stock warrants upon Sight Sciences’ IPO.
Net loss was $17.2 million in the third quarter of 2021 ($0.43 per share), as compared to $8.1 million in the corresponding period of the prior year ($0.85 per share).
Cash and cash equivalents totaled $271.5 million and total debt was $32.5 million as of September 30, 2021. In July 2021, the Company completed an initial public offering, raising $252.2 million of net proceeds.
2021 Financial Guidance
Sight Sciences projects revenue for the full year 2021 to range from $47.5 million to $48.5 million, which represents approximately 74% growth compared to 2020.
Conference Call
Sight Sciences’ management team will host a conference call today, November 10, 2021, beginning at 4:30 pm ET. Investors interested in listening to the call may do so by dialing 1-844-287-7410 for domestic callers or 1-914-800-3942 for international callers, five to ten minutes prior to the start time, using the passcode: 6837927. A live and recorded webcast of the call will be available on the “Investors” section of the Company’s website at investors.sightsciences.com.