- Needham initiated reporting Sight Sciences Inc SGHT with a hold rating and no price target.
- The analyst cautions that recent launches by competitors in the minimally invasive glaucoma surgery (MIGS) market will offset Sight Sciences’ revenue growth and cap the stock’s near-term upside potential.
- SGHT’s OMNI system, which generated 95% of sales in 2021, is used to treat glaucoma by targeting the drainage channels in the eye. Needham believes that most OMNI procedures are for patients with mild to moderate glaucoma, which is currently an estimated $350 million market.
- Related: Sight Sciences Releases Long-Term Safety and Efficacy Data for Glaucoma Surgical System.
- The analyst believes that the continued adoption and use of OMNI will be the key driver of revenue growth in the short to medium term. Needham expects the recently launched SION goniotomy device to gain momentum by 2023, but believes it could potentially cannibalize OMNI volume.
- Sight Sciences’ dry eye business addresses a large aggregate addressable market and could become a significant revenue growth driver. Still, market development will require time and further investment, writes the Needham analyst.
- Price promotion: SGHT shares are up 7.08% to $6.89 on Tuesday’s latest check.
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