Nova eyes $8M cap raise to help 'clear the vision'

Key points:

• Nova Eye Medical aims to raise $8 million for the expansion of its glaucoma surgical device business

• After receiving FDA approval, the company’s Itrack device has seen an increase in user-friendly designs attracting more doctors

• Despite current losses, the company expects to break even by the fiscal year 2025 with a funded growth strategy centered on the Itrack device

Tom Spurling, CEO of Nova Eye Medical (EYE) shares that the firm is raising $8 million in capital to accelerate the growth of its glaucoma surgical device business and expand into new territories. Tom expresses that the fundraising will be used towards furthering sales growth and broadening their product portfolio. He acknowledges the company's consistent growth in the United States and views the additional funds as an opportunity to explore markets outside the US.

Tom discloses that Nova Eye Medical received FDA approval in March of the previous year for their Itrack device, a catheter designed for glaucoma treatment, leading to an increase in user-friendly designs appealing to practitioners. Discussing the potential of their product in relation to the glaucoma market, he reveals that while pharmaceuticals dominate the current market worth $5.76 billion, their segment focusing on surgical devices has a total addressable market of $750 million, growing at a rate of 15% per annum.

Spurling further describes the simplicity and effectiveness of Itrack's function, likening it to clearing out a blocked gutter, thus providing relief for glaucoma patients. While discussing the company's current financial position, Spurling acknowledges a £6.6 million revenue from their glaucoma business segment with a significant rise in the US. However, despite currently reporting a loss, he is optimistic about breaking even by the fiscal year 2025 with their well-funded growth strategy centered on the Itrack device.

Below is an unedited transcript of the interview:

The glaucoma treatment technology firm Nova Eye Medical is raising $8 million in capital for the expansion of its glaucoma surgical device business into new territories. Dani spoke with Nova's CEO, Tom Spurling, earlier today and started by asking him where those funds will be used. We intend to use. We're in the process of raising 8 million. We've just completed the day. 5.1 and 2.9 will come from a fully underwritten entitlement retail entitlement offer. The 8 million will be applied to accelerate growth of our glaucoma Wokoma Surgical Devices business, accelerate sales growth, and to broaden our product portfolio. We our business has been growing well in the United States, and we have opportunities outside the United States. This money will enable us to put our foot down on that opportunity.

0:54

Okay, so I'm just looking here. You did get FDA approval in March last year in terms of I track advance, can you just run us through what the implications were as a result of that FDA approval? Yes. So the approval we received, uh, in March, uh, very last day of March 2023.

1:17

And they would us to market a new generation of our, um, I track, uh, catheter, uh, a catheter that, um, improves the ability of surgeons to use, uh, a catheter as part of surgery to correct for glaucoma or to, um, treat glaucoma. The the device, um, expanded the number of surgeons because of the way it was designed. We had a we used to have a design that required forceps. The new design meant that we have an injector. And we felt and we have seen a lot more doctors are willing to use the injector model of track versus the

2:06

model that we used.

2:08

And when it comes to glaucoma, we know it's it's a it's a huge market. But how huge are we talking. And so what's the potential Tam for your your product. So within within uh the glaucoma market is large. It's dominated by pharmaceuticals. Uh, 5.76 billion. Uh, most of that is 78% of that. And falling is being used on, um, drugs. Topical drops within our segment will come as surgical devices. The total addressable market is currently 750 million USD, and it's growing at a rate of 15% a year, uh, to about 1.3 billion, uh, in five years time. That will come as surgical devices market is right. The space that we are accessing.

3:02

Wow. It's huge. I'm actually just having a look at this device. It's absolutely amazing. Um, it's it's quite incredible. So just explain how you, uh, how this injection process works. I must admit, I'm as blind as a bat and wear contact lenses, so I've never even had laser surgery because it terrifies me. Um, so, yeah, just explain how the device. Because it looks absolutely amazing. So. So we have, um, wokoma is a failure of plumbing in the eye. The body constantly produces, you know, fluid, protein rich fluid that circulates through the eye, keeping it healthy and and maintained. The, the, um, glaucoma is a disease. As people get older, blockages occur in that irrigation system. So the flow of that protein rich fluid is impeded and, uh, the body continues to produce it and

4:02

pressure builds up. The increase in pressure within the eye, untreated, causes the eye to, uh, the optic nerve to be crushed and blindness to progress from the peripheral in. It's insidious and you can't.

4:20

Uh, it's painless. And, uh, that is why when we go and, uh, have our bosses, there's little, often a little puff, uh, given by the optometrist that measures intraocular pressure. That's a very early screening test. Our device is inserted into the main drainage canal that runs around the colored part of everyone's eye. The doctor will gently insert the catheter, um, in a simple surgery, into the eye canal, push it around the canal and clear blockages, and then gently withdraw it at the same time pumping in what amounts to some biocompatible hydraulic fluid that flushes out. So you can imagine we're cleaning the gutter. We have clean the leaves out of the gutter, and then we get our hose and we flush it out and we've cleaned the gutters. No blockages and no problems from, uh, too much rain causing trouble. That's

5:20

exactly what I track does. It's a very simple step free. Nothing left behind. Not unlike angioplasty. Uh, in cardiac.

5:31

And just in terms of because your results are coming up technically on the 23rd of February. But of course, for this raising, you've had to open your books. Um, tell us about the state of your balance sheet once this, uh, raising has done and your investments and what the cash flow position is. Yep. So we, um, have just reported for our, um,

5:57

uh, unaudited results as part of the cleansing for the raise that our, um, glaucoma segment of our business, um, had revenues of 6.6 million, 5.5 million of which were in the US. Uh, sorry, 5.1. The 5.1 was a growth of 65% on the previous corresponding period, and represents a proof over the last eight months of six months, at eight months prior, that the eye track advance with the injector version is well accepted by doctors.

6:33

Um, our revenue run right now. Uh, doubling what we did for the half is about 13 million USD. Our, um, we are, uh, we are reporting a hash loss at the moment. Uh, where it targeting break even during the fiscal year 25 for the glaucoma segment and our balance sheet. At the moment we are following the raise will have about $10 million on it. We are well funded. Uh, our sales are growing and our monthly results are improving, and we're well funded to achieve our goals.

7:12

Fantastic. And, uh, just to wrap up so the viewers understand is, um, I track the main, uh, potential earnings generator for the business. And is it predominantly out of the US market? Yep. Um, at the moment we have we have a range of technologies, not just for glaucoma, but at the moment our business is dominated, the revenue is dominated by the I track product and its sister product, uh, multi-node will will have a drainage device, also a device for coma. So we have our revenues are dominated by common surgical devices. And, um, that that growth is the driver of interest in our business and what our shareholders want.