GKOS: iDose Survey: Sizing the Proposed iDose LCD Impact—We See Manageable Impact as Drafted

Research evidence excerpt

GKOS: iDose Survey: Sizing the Proposed iDose LCD Impact—We See Manageable Impact as Drafted

0.07 E 0.07 E 0.07 E 0.08 E 0.30 E

Prior 0.08 E NC NC 0.06 E 0.28 E

If LCD amended to "OR" criteria, we estimate ~4-5% haircut in 2027-29E. Allowing Source: Company Data, Wells Fargo Securities estimates, and Factset.

either 2 failed drugs or SLT, instead of both, increases eligibility to ~72% of eyes, reducing NA = Not Available, NC = No Change, NE = No Estimate

the near-term impact to ~5% (~$14M in 2027). See Exhibit 1. Larry Biegelsen

We are lowering our 2027-2030E iDose estimates to reflect survey results. We Equity Analyst | Wells Fargo Securities, LLC

Lawrence.Biegelsen@wellsfargo.com | 212-214-8015

now model iDose at $278M in 2027 and $411M in 2028, down ~$37M and ~$50M,

respectively (11-12% haircut). Our 2026 estimates are unchanged since the policy would Simran Kaur

take effect in 2027. Equity Analyst | Wells Fargo Securities, LLC SimranKaur@wellsfargo.com | 212-214-5973

Lei Huang

We are updating our SOTP (sum-of-the-parts) analysis. For iDose, we estimate sales Associate Equity Analyst | Wells Fargo Securities, LLC

of $799M by 2031E (vs $891M prior), and we are also now breaking out Epioxa (WW Lei.Huang@wellsfargo.com | 212-214-8039

Corneal Health), for which we estimate sales of $918M by 2031E. We are applying a ~6x Nathan Treybeck

EV/sales multiple to each iDose and Epioxa, and discounting back 10% y/y to FY27. Finally, Equity Analyst | Wells Fargo Securities, LLC

we are applying a ~2x NTM EV/sales multiple to the base (in line w/ peers), ex-iDose and Nathan.Treybeck@wellsfargo.com | 212-214-8042

ex-Epioxa.

Our SOTP analysis points to a total enterprise value of ~$7.90B for GKOS (vs current

$6.9B), or about an ~10.2x blended NTM EV/sales.