Nova Eye Medical Raises A$6.6M to Accelerate Growth Amid Supply Chain Recovery

Capital Raise to Fortify Growth and Operational Stability

Nova Eye Medical Limited (ASX: EYE), a specialist in minimally invasive glaucoma surgery (MIGS) devices, has announced a capital raising initiative targeting approximately A$6.6 million. The raise is structured in two tranches: an initial A$4.1 million placement under existing capacity and a subsequent A$2.5 million tranche subject to shareholder approval. The offer price of A$0.12 per share represents a significant discount to recent trading prices, reflecting a strategic move to bolster the company’s balance sheet following a temporary supply chain disruption in Q1 FY25.

The funds will be deployed to expand Nova Eye’s sales teams in the USA and Germany, invest in product development and margin improvement, and support working capital needs. This capital injection aims to underpin operational resilience and position the company to capitalise on growing global demand for its flagship iTrack™ Advance canaloplasty device.

Strong Sales Momentum and Market Penetration

Despite the supply chain challenges that temporarily constrained production and sales in early FY25, Nova Eye has demonstrated a robust recovery. Global sales increased by 39% in constant currency terms for the year ended 31 December 2024, with the USA market leading growth at 48%. The iTrack™ Advance device, approved by the FDA in April 2023, has been a key driver of this momentum, with five consecutive half-year periods of sales growth in the US.

Sales in Q2 FY25 exceeded both the prior quarter and the corresponding period last year, underscoring the resilience of demand and the effectiveness of the company’s direct sales force and marketing investments. However, some headwinds remain, including European customs delays and market confusion in certain US states due to changes in Medicare Administrative Contractor (MAC) reimbursement policies in December 2024.

Path to Profitability in Glaucoma Division

Nova Eye’s glaucoma segment is showing encouraging signs of financial improvement. The US glaucoma operations reduced their EBITDA loss to A$0.4 million in H1 FY25 from A$2.5 million in the prior corresponding period. The company anticipates the glaucoma division will reach profitability in the second half of FY25, with expected revenues between US$9 million and US$10 million excluding sales to China.

This progress is supported by improved gross margins, cost efficiencies in production, and enhanced returns on marketing investments. The group’s overall cash outflow from operations is steadily declining, with Q2 FY25 cash burn around A$1.3 million, signaling a trajectory towards cash flow breakeven.

Market Position and Competitive Landscape

Nova Eye is carving out a growing share in the global MIGS market, which is forecast to expand significantly in the coming years. The company’s iTrack™ Advance device offers a stent-free, tissue-preserving alternative to traditional glaucoma treatments, appealing to surgeons and patients seeking safer, more effective options. Market data indicates iTrack™ is gaining share in the US, with reported revenue growth of 55% year-over-year and a rising presence against competitors such as Alcon and Glaukos.

With approximately 150,000 procedures performed globally using iTrack technology, Nova Eye is well positioned to benefit from the increasing adoption of MIGS as a preferred treatment for early-stage glaucoma. The company’s focus on surgeon engagement, clinical training, and reimbursement support underpins its commercial strategy.

Outlook and Risks

Looking ahead, Nova Eye expects continued revenue growth in FY25, projecting annual sales between A$27.5 million and A$29.1 million excluding China. However, uncertainties remain, including potential impacts from evolving US-China trade relations and reimbursement policy changes that could affect market dynamics. The company’s ability to sustain supply chain resilience and execute its sales expansion plans will be critical to maintaining momentum.