Eyeing a buy for Adelaide health tech
An Adelaide-based company that specialises in glaucoma treatment technology is the fastest-growing company in its sector in the US market and won’t be adversely affected by tariffs, Cameron England explains.
Adelaide-based ophthalmic laser manufacturer Nova Eye Medical has been flagged as a “speculative buy”, given its status as the fastest-growing company in its sector in the US market, with its onshore manufacturing operations ensuring it won’t be adversely affected by tariffs.
E&P Capital’s David Nayagam included the company in his recent list of small-cap healthcare stocks to watch, noting the company had reported record full-year revenues built on growing market share in the United States.
Nayagam said the improved revenue figures were “driven by iTrack Advance with improving recognition of EYE’s technology and growing market share in the US’’.
“A material improvement in sales rep productivity in the last six months was flagged in its recent update, an important step as EYE works to achieve EBITDA breakeven for its glaucoma segment,’’ he said in a note to clients.
“Direct feedback from leading glaucoma surgeons at the 2025 Association for Research in Vision and Ophthalmology annual meeting was overwhelmingly positive with regard to the differentiated benefits that iTrack Advance offers over the competition.’’
Nova Eye Medical’s proprietary iTrack technology is used to treat glaucoma, and has been used to treat more than 100,000 patients globally.
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The company, in its quarterly report released last week, said it had posted record full year revenue for the 2025 financial year of $29.2 million, up 23 per cent year on year, with its glaucoma segment achieving positive earnings before interest, depreciation and amortisation (EBITDA) in the second half.
The company said it was targeting breakeven EBITDA across the whole business in the first half of the current financial year and a further uplift in cash flow.
“Second half sales of $16.2 million were up 51 per cent on the prior corresponding period and in line with guidance,” the company said.
“Fourth quarter sales of $8.8 million represented the highest quarterly result in Nova Eye Medical’s history.’’
Quarterly cash outflow for the final quarter of FY25 was an improvement at $840,000, with the company having $5.1 million in cash on hand at the end of the period.
“The Centers for Medicare and Medicaid in the USA issued its proposed reimbursement rates for calendar year 2026 during the 3rd week of July 2025,’’ the company told the ASX last week.
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“If the proposed rates become final they will continue to provide good incentive, both in absolute terms and relative to other surgical devices, during 2026 for doctors to use company products for glaucoma surgery. These rates are usually finalised in November each year.’’
Nova Eye Medical was ranked 78 in the 2024 South Australian Business Index, a steady climb since debuting in the list at the 94th spot in 2023.
The company said full year sales revenue (excluding China) for the current year was expected to range between $US21 million and $US24 million ($32 million to $37 million), and sales momentum was strong.
“An independent analysis by Needham & Company, a globally recognised investment bank and asset management firm, identified Nova Eye Medical as the fastest growing MIGS (minimally invasive glaucoma surgery) company in the United States,’’ Nova said.
The company was also waiting on evaluation work being carried out by another firm on using iTrack for drug delivery, while regulatory approval of iTrack Advance in China was also progressing.
“This process has been underway for approximately 15 months,’’ the company said.
“We are optimistic of securing approval later in the 2025 calendar year. In the meantime, sales in China of our original iTrack™ microcatheter are continuing.’’
Nayagam said the company’s risk of being caught in any US tariff was “minimal as sub-assembly is conducted in New Zealand and shipped to Fremont, California, where devices are finished”.
“We flag a risk, based on operating in this dynamic and competitive sector, of new products that could seek to close the gap in canaloplasty as key patents for iTrack expire,’’ he said.
“On the upside, registry data on iTrack continues to grow, and we anticipate a number of peer-reviewed papers in the coming year that will help build the clinical indication for the EYE device.’’
Nova’s unaudited operating result for the full year was an EBITDA loss of $US3.4 million.
Nova shares are currently changing hands at 14c per share. They have traded between 8.6c and 26c over the past 12 months.
