Sight Sciences plots move into drug-device combos after seeing revenue surge 77%

Buoyed by tens of millions in new revenue and a successful IPO that brought in proceeds of more than a quarter-billion dollars, Sight Sciences is scoping out new avenues to deliver ophthalmic treatments.

So far, the California-based company’s portfolio has mainly revolved around two devices: the Omni Surgical System and nonsurgical TearCare device, which have been cleared by the FDA to treat glaucoma and dry eye disease, respectively.

But with the success of those products and the business as a whole, Sight is now eyeing an expansion beyond standalone device development to offer a broader range of treatments for glaucoma and dry eye patients throughout the entirety of their time with the chronic diseases, CEO Paul Badawi said during a call with investors Thursday.

“To do so, we will be expanding beyond devices into pharma, drug-device combinations and sustained-release pharmaceuticals. We recognize that medication can be an effective first-line glaucoma treatment, if administered properly,” he said, per a transcript of the call, noting that Sight is particularly focused on innovating in the sustained delivery of hypotensive medications.

In fact, according to Badawi, Sight has already filed for intellectual property rights on “a product that we believe could have a superior product-market fit in terms of ease of application, efficacy and safety compared to existing and announced competing products.”

The chief executive didn’t offer many other details about the mysterious product, but shared that its early results in animal testing have so far been “promising.”

That doesn’t mean Sight is fully exiting its device-making comfort zone. Badawi said on the call that the company has four minimally invasive glaucoma surgery, or MIGS products in the works, two of which are slated for introduction in the next year.

Those upcoming additions include the next generation of the Omni surgical system and a new goniotomy device, both of which will debut in the second half of 2022. Further on down the line, Sight is also working on an implantable canalicular scaffold and an implantable solution for patients with advanced or refractory glaucoma who have exhausted all other treatment options.

“Ultimately, we would have four surgical devices that would represent five distinct procedures, representing the broadest and most compelling product portfolio in the MIGS category,” Badawi said.

All of this newness follows a banner year for Sight. In July, it made its public debut on the Nasdaq in an initial public offering that poured $276 million in gross proceeds into the company.

Overall, in 2021, Sight reported total revenues of $49 million, marking a year-over-year increase of 77%, led by a jump of nearly 80% in earnings for its surgical glaucoma segment. Sight also widened its gross margin for the year, thanks to the bump in revenue and a switch to lower-cost, high-volume manufacturers for the Omni system.

Looking at the year ahead, Sight is aiming to piggyback off last year’s growth. It’s predicting that its revenue will clock in somewhere between $67 million and $75 million for 2022, which would average out to about 45% growth over 2021’s earnings.