RxSight (RXST) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Market overview and trends

• Cataract surgery is the most common ophthalmic procedure in the US, with about 5 million cases annually, driven by aging demographics and growing mid-single digits.

• Premium intraocular lenses (IOLs) now account for 19%-20% of the US market, representing most of the profit for practices due to declining reimbursements for standard cataract surgery.

• Growth in the premium IOL segment is steady, fueled by patient desire for spectacle independence, technological advances, and strong economic incentives for practices.

• The Light Adjustable Lens (LAL) draws patients from all IOL segments, with 40%-45% coming from monofocal lenses, a third from toric, and the rest from presbyopia-correcting IOLs.

• Many cataract patients have ocular conditions making them less suitable for presbyopia-correcting IOLs, but LAL does not reduce contrast vision, broadening its appeal.

Adoption, utilization, and product development

• Over 800 Light Delivery Devices (LDDs) are installed in the US, with 1,400 surgeons trained, indicating early-stage market penetration and ongoing adoption.

• Utilization of LAL per LDD is rising across all customer cohorts, with newer adopters reaching higher usage levels faster, supporting a goal of 50% share in the premium IOL market.

• The LAL+ lens, offering extended depth of focus, has been well received, meeting clinical demand for improved near and intermediate vision.

• Continuous product improvement is a core strategy, with over 40 PMA supplements and ongoing R&D to drive adoption and maintain technology leadership.

Financial strategy and international expansion

• A recent capital raise netted $107 million, bringing cash and equivalents to $233 million, with timing driven by favorable market conditions and a desire to invest in growth.

• Investments are focused on expanding sales and marketing, especially to optometrists, and increasing R&D for product enhancements.

• International expansion is planned, targeting the 20 largest OUS markets, primarily in Europe and Asia, with regulatory timelines to be clarified in early next year.