Sight Sciences Announces the Results of a Budget Impact Analysis for its TearCare® System for the Treatment of Meibomian Gland Disease (“MGD”) Showing Cost Savings Over Existing Reimbursed Treatment Options

Rhea-AI Summary

Sight Sciences (SGHT) announced results of a Budget Impact Analysis (BIA) for its TearCare® System in treating Meibomian Gland Disease (MGD)-associated dry eye disease. The study, published in Expert Review of Ophthalmology, compared TearCare to prescription medications like Restasis and Xiidra over a two-year period.

The analysis revealed that a 20% increase in TearCare's market share versus prescription medications would generate estimated savings of $36.87 per member per year in a health plan covering one million lives. The study demonstrated that higher TearCare utilization correlates with increased cost savings from a US payer perspective.

Positive

• BIA study shows cost savings of $36.87 per member per year with TearCare adoption
• Potential market opportunity in 17.9 million US patients diagnosed with dry eye disease
• Study demonstrates direct correlation between TearCare usage and cost savings

Negative

• BIA results based on assumptions that may not reflect actual market conditions
• Market adoption and reimbursement levels still uncertain

Insights

Healthcare Financial Analyst

The budget impact analysis for TearCare reveals compelling cost advantages in the treatment of MGD-associated dry eye disease. At $36.87 per member per year savings for a million-member health plan with a 20% market share increase, this translates to potential annual savings of $36.87 million. The analysis, comparing TearCare against established treatments like Restasis and Xiidra, demonstrates a linear correlation between increased TearCare adoption and cost reduction. This positions TearCare favorably for insurance coverage negotiations, potentially accelerating market penetration in the 17.9 million patient U.S. dry eye disease market. The publication in a peer-reviewed journal adds credibility to these findings, though it's worth noting the analysis relies on various assumptions that could affect real-world outcomes.

Medical Device Market Analyst

This publication represents a strategic milestone for Sight Sciences in establishing TearCare's value proposition. The timing is particularly significant as the company aims to secure broader insurance coverage and reimbursement pathways. The analysis builds upon previous clinical efficacy demonstrated in the SAHARA and OLYMPIA trials, creating a comprehensive case for both clinical and economic benefits. For a company with a market cap of $172.36 million, successful penetration into the massive dry eye disease market could be transformative. The ISPOR-guideline compliance adds methodological rigor to the findings, though market success will ultimately depend on real-world validation of these cost savings and payor adoption rates. This development could catalyze payor contracts and drive significant revenue growth.

Budget impact analysis published in the Expert Review of Ophthalmology journal

MENLO PARK, Calif., Dec. 19, 2024 (GLOBE NEWSWIRE) -- Sight Sciences, Inc. (Nasdaq: SGHT) (“Sight Sciences,” or the “Company”), an eyecare technology company focused on developing and commercializing innovative, interventional technologies that elevate the standard of care, today announced the results of a Budget Impact Analysis (“BIA”) of the TearCare^® System (“TearCare”) for the treatment of MGD-associated dry eye disease (“DED”) in the United States. A BIA estimates the fiscal impact of adopting a new technology or treatment within a specific provider environment or patient population – in this case, identifying the health savings associated with increased adoption of TearCare as compared to prescription dry eye medications for patients with DED.*

The analysis, projected over a two-year period, focused on moderate to severe MGD- associated DED in U.S. patients over 18 years of age. It compared the financial impact of TearCare to commonly prescribed dry eye medications, including Restasis 0.05% branded and generic, and Xiidra 5%. Key findings indicated that a 20% increase in market share of TearCare compared to prescription dry eye medications would yield an estimated annual savings of $36.87 per member per year (“PMPY”) in a hypothetical health plan with one million covered lives. The study showed a direct relationship between increased utilization of TearCare in place of prescription medications and total costs savings from a US payer perspective.

“In addition to the strong clinical efficacy of TearCare shown in the SAHARA and OLYMPIA randomized controlled trials, this budget impact analysis reported that increased adoption of TearCare treatments for patients with MGD-associated DED was estimated to result in meaningful cost savings. We believe the combination of the strong clinical data from the SAHARA RCT and the findings of this budget impact analysis create a compelling case for payors to cover treatments performed with TearCare at an appropriate reimbursement level,” said Paul Badawi, Co-Founder and Chief Executive Officer of Sight Sciences. “Pioneering market access to interventional dry eye treatments with TearCare on behalf of patients and the eye care providers who care for them is a core component of our strategy and this milestone represents progress towards delivering this innovative technology to a portion of the 17.9 million patients diagnosed with dry eye disease in the U.S.”

Authors and affiliations: Phoenix Riley, PharmD, MSc (AESARA, Inc.); Cristina Masseria, PhD (AESARA, Inc.); Chad Patel, PharmD (AESARA, Inc.); Roberta Longo, PhD (AESARA, Inc.); Lorie Mody, PharmD (AESARA, Inc.), and Thomas Chester, OD, FAAO (Cleveland Eye Clinic).

*The BIA was developed in accordance with established ISPOR guidelines, but it was based upon various assumptions, including with respect to cost of treatments, respective usage and market uptake of prescription drops and TearCare, efficacy (including duration of effect), safety and similar factors. These assumptions may not be consistent with actual clinical and market conditions, and changes in one or more of these assumptions could cause individual health plan results to differ.

Paper Reference: Chester, T., Longo, R., Masseria, C., Riley, P., Patel, C., & Mody, L. (2024). Budget impact analysis (BIA) of the TearCare System for the treatment of meibomian gland dysfunction (MGD)-associated dry eye disease (DED) in the United States (US). Expert Review of Ophthalmology, DOI: 10.1080/17469899.2024.2444930.

About Sight Sciences
Sight Sciences is an eyecare technology company focused on developing and commercializing innovative and interventional solutions intended to transform care and improve patients’ lives. Using minimally invasive or non-invasive approaches to target the underlying causes of the world’s most prevalent eye diseases, Sight Sciences seeks to create more effective treatment paradigms that enhance patient care and supplant conventional outdated approaches. The Company’s OMNI^® Surgical System is an implant-free glaucoma surgery technology (i) indicated in the United States to reduce intraocular pressure in adult patients with primary open-angle glaucoma; and (ii) CE Marked for the catheterization and transluminal viscodilation of Schlemm’s canal and cutting of the trabecular meshwork to reduce intraocular pressure in adult patients with open-angle glaucoma. Glaucoma is the world’s leading cause of irreversible blindness. The Company’s SION^® Surgical Instrument is a bladeless, manually operated device used in ophthalmic surgical procedures to excise trabecular meshwork. The Company’s TearCare System technology is 510(k) cleared in the United States for the application of localized heat therapy in adult patients with evaporative dry eye disease due to Meibomian Gland Disease (“MGD”) when used in conjunction with manual expression of the meibomian glands, enabling clearance of gland obstructions by eyecare providers to address the leading cause of dry eye disease. For more information, visit www.sightsciences.com.

Sight Sciences, the Sight Sciences logo, TearCare, SmartHub and SmartLids are trademarks of Sight Sciences registered in the United States. OMNI and SION are trademarks of Sight Sciences registered in the United States, European Union and other territories.

© 2024 Sight Sciences. All rights reserved.

Forward-Looking Statements
This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include, without limitation statements regarding estimated costs savings associated with use of the TearCare System; and the belief that the findings of this budget impact analysis create a compelling case for payors to cover treatments performed with TearCare at an appropriate reimbursement level. These statements often include words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast” and other similar expressions. We base these forward-looking statements on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at such time. Although we believe that these forward-looking statements are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our business, results of operations and financial condition and could cause actual results to differ materially from those expressed in the forward-looking statements. These forward-looking statements are subject to and involve numerous risks, uncertainties and assumptions, including those discussed under the caption “Risk Factors” in our filings with the U.S. Securities and Exchange Commission, as may be updated from time to time in subsequent filings, and you should not place undue reliance on these statements. These cautionary statements are made only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Media contact
pr@SightSciences.com

Investor contact:
Philip Taylor
Gilmartin Group
415.937.5406
Investor.Relations@Sightsciences.com

FAQ

What are the cost savings projected for TearCare (SGHT) according to the Budget Impact Analysis?

The analysis shows that a 20% increase in TearCare's market share would result in savings of $36.87 per member per year in a health plan with one million covered lives.

How does TearCare compare to existing dry eye medications in the BIA study?

The study compared TearCare to commonly prescribed medications including Restasis 0.05% (branded and generic) and Xiidra 5%, showing cost advantages for TearCare.

What is the potential market size for TearCare (SGHT) in the US?

According to the press release, there are 17.9 million patients diagnosed with dry eye disease in the U.S., representing the potential market for TearCare.

What clinical trials support TearCare's efficacy?

The press release mentions the SAHARA and OLYMPIA randomized controlled trials as demonstrating strong clinical efficacy for TearCare.