Sight Sciences falls over 20% after revenue guidance miss

Shares of Sight Sciences are down approximately 18% of over $1.10 to $5.83 per share in post-market trade ing on Monday after announcing lowered revenue view for the current quarter and full year.”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. While we are actively managing the proposed LCDs and their impacts on our business and customers, we believe that the ongoing uncertainty from the proposed LCDs has affected the ordering activity of certain customers in the third quarter. We expect this impact to continue until there is clarity on longer-term coverage by the MACs. We are taking steps intended to mitigate these effects and believe they will prove to be transitory if our products, especially our OMNI(R) Surgical System technology, maintain their current broad coverage upon finalization of the LCDs,” 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.” “We remain steadfast in our belief in OMNI’s leading clinical value proposition and are confident that we, along with industry stakeholders, responded to the proposed LCDs with compelling clinical evidence that is more than sufficient to ensure continued widespread patient access to our OMNI technology. We will continue to focus on maintaining strong relationships with our customers and executing our strategic initiatives, which we believe will be greatly enhanced by the addition of medtech industry veteran Matt Link as Chief Commercial Officer. We look forward to continuing to improve the lives of patients with glaucoma and dry eye as we optimize and scale both our Surgical Glaucoma and Dry Eye businesses,” continued Mr. Badawi.