Nova Eye Medical Reports 48% U.S. Sales Growth, Eyes FY25 Breakeven

Strong Sales Momentum in Ophthalmic Devices

Nova Eye Medical Limited (ASX: EYE) has delivered a compelling performance in its December 2024 quarterly report, showcasing a 39% increase in global sales over the prior corresponding period. This growth was predominantly driven by a 48% surge in U.S. sales, underscoring the success of its flagship iTrack™ Advance device in the world's largest ophthalmic market.

The company’s direct sales force in the U.S. has been pivotal, supported by strategic marketing initiatives and expanded presence at key industry events. Surgeon adoption of iTrack™ Advance continues to gain traction, fueling five consecutive half-year periods of revenue growth since the product’s launch in April 2023.

Path to Profitability and Operational Efficiency

Importantly, Nova Eye Medical is on track to achieve breakeven in its glaucoma segment during FY25. The U.S. operations have shown a marked improvement in EBITDA losses, narrowing from A$2.5 million in the first half of FY24 to just A$0.4 million in the same period of FY25. This progress is complemented by a reduction in group cash outflows from operations, which fell from $1.8 million in Q1 FY25 to $1.3 million in Q2 FY25, reflecting tighter cost management and operational efficiencies.

Despite facing temporary supply chain challenges early in FY25, the company demonstrated agility in overcoming these hurdles, with sales rebounding strongly in the second quarter to surpass both the first quarter and prior year results.

Capital Raise to Support Growth Initiatives

Following the quarter, Nova Eye Medical successfully completed a $6.6 million placement at $0.12 per share, backed by both new and existing institutional investors. The capital injection is earmarked for expanding sales teams in the U.S. and Germany, enhancing product development, and bolstering working capital to sustain growth momentum.

The placement was structured in two tranches, with the second tranche subject to shareholder approval at an upcoming Extraordinary General Meeting. Notably, a major shareholder and company directors have committed to participate in this tranche, signaling confidence in the company’s trajectory.

Revenue Guidance and Market Outlook

Nova Eye Medical has set FY25 revenue guidance (excluding China sales) between A$27.5 million and A$29.1 million, with half-year sales expected to grow 15% to 30% over the first half. The company anticipates the glaucoma division will reach profitability in the second half of FY25, driven by sustained sales growth and disciplined cost control.

While recent Medicare reimbursement adjustments in some U.S. states created temporary market confusion, the core reimbursement rate for surgeries using iTrack™ remains stable, providing a solid foundation for continued expansion.

Strategic Positioning in a Competitive Landscape

Nova Eye Medical’s portfolio, including the minimally invasive glaucoma surgery (MIGS) device iTrack™ Advance and the Molteno3® drainage platform, positions it well within the growing ophthalmology market. The company’s manufacturing footprint in California and New Zealand, combined with a global distribution network, supports its international growth ambitions.

As the company navigates the path to profitability, its ability to scale sales operations and innovate product offerings will be critical to maintaining momentum and capturing market share.