Sight Sciences (NASDAQ:SGHT), the maker of a glaucoma surgery device, has lowered its revenue outlook for the year due to uncertainty surrounding Medicare coverage for its products.
Shares in the company fell by more than 30% in early New York trade.
The company cited decreased demand as a result of this uncertainty. Hence, it now expects FY revenue to be between $80 million and $82 million, down from its previous estimate of $89M to $94M. Analysts were looking for $92.1M.
Additionally, their third quarter revenue is projected to be between $19M and $20M, compared to the consensus of $23.7M.
Sight Sciences plans to discuss the full results for the third quarter in early November. In addition to this news, the company announced the appointment of Matt Link as its Chief Commercial Officer.
“We typically see a strong second quarter followed by a slower start to the third quarter given traditional seasonality patterns. While we had a strong second quarter prior to the LCD proposals, we have faced a lower cadence of new account additions and relatively flat utilization and we have not experienced the expected increase in commercial activity thus far in August and early September,” said Paul Badawi, Founder and Chief Executive Officer of Sight Sciences.
“Notably, our account retention remains high, evidencing OMNI’s clinical importance to the glaucoma treatment paradigm. We expect that revenue will normalize and return to growth should the MACs clarify that OMNI procedures are to remain covered for Medicare beneficiaries in the affected jurisdictions.”
William Blair analysts downgraded shares to Market Perform from Outperform.
“The newly issued lower guidance this quarter is disappointing and suggests that Sight Sciences is already seeing a pronounced impact on demand. Though this dynamic should start to reverse should the proposed LCD not be finalized, visibility is limited,” they wrote in a note.
Piper Sandler analysts also lowered their rating on the stock.