Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Craig Bijou with Bank of America. Your line is open.
Craig Bijou: Good afternoon, guys. Thanks for taking the questions. So wanted to start with SION, and wanted to see if you guys would be willing to provide how much it contributed in the quarter, or at least maybe some qualitative commentary, recognizing that it’s still early. And then, how many of those 200 accounts overlap with your OMNI accounts. And then just thinking about 23 and how to think about Surgical Glaucoma and the mix that — the mix between SION and OMNI and how you guys think about that growth materializing between the two products.
Tom Huang: Sure. Hey, Craig, this is Tom. Yes, we don’t want to get too much into specifics on SION for competitive reasons. But I think it’s fair to say that it’s trending in the mid single digits annualized range. And, sorry, can you repeat your other questions? They were
Craig Bijou: Yes, sure., On the accounts, the 200 accounts that you guys had, just wanted to know how much of an overlap that was with your OMNI users?
Tom Huang: Oh, sure, yes. About, a little over a third were brand new accounts — that were brand new to order SION, did not order OMNI as well.
Craig Bijou: Got it. And one other follow-up on SION, just thinking about ’23, how should we think about the — whether it’s the acceleration from kind of where revenue was in Q4, or just any help in trying to think about the mix between OMNI and SION contribution in ’23.
Craig Bijou: Sure. I think we are continuing to prioritize OMNI, as our flagship product. We do think that we’ll have, a nice growth year-over-year as we have a full year of contribution from SION. But again the opportunity for SION is smaller than the one for OMNI. So I think you can take that as guidance.
Craig Bijou: Got it. It’s helpful. And if I can just follow up maybe on the last question on TearCare and understand that you’re not building into your assumptions a hockey stick, or a significant acceleration and growth. But we’d love to just hear the opportunity, what you guys think insurance coverage could do for TearCare. And you’ve obviously been growing strong, strong — growth has been strong in just the private pay market, but would love to hear what could happen if you do get insurance.
Paul Badawi: Yes, Craig, I’ll take that one. I think with a successful SAHARA outcome, again, the endpoints: one, is the first is 6 months superiority readout to Restasis. And then we’re also following all 300 plus patients out for 2 years to show durability of TearCare treatment effect. I believe that if we are successful with SAHARA and successful in our payer efforts, again, this was a payer informed clinical trial protocol and design, that this can be one of the most exciting opportunities that eyecare has seen in the past decade. We talked about what happen to our revenue if our accounts added just a single treatment per week. You can imagine, again, Dry Eye is the number one reason for a patient visit to an eyecare provider, number one.
There is no meaningfully reimbursed interventional procedure for Dry Eye. And so if we can show to payers that the clinical value is there versus prescription eye drops, costly prescription eye drops, and that the health economic value and the costs of such treatments are not only justified, but hopefully in payer’s interests compared to costly prescription Rx. You can imagine, how exciting this business model can become overnight.
Craig Bijou: Got it. Thanks. Thanks for taking the questions, guys.
Paul Badawi: Thanks, Craig.
Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Joanne Wuensch with Citi. Your line is open.
Joanne Wuensch: Good evening, and thank you for taking my questions. There are two of them, I’ll just put them right up to do with reimbursement. Could you please comment on any changes or stability you’ve seen in the reimbursement for SION and the procedure? And then the second one has to do with growth margins. As you move towards your path to profitability and layer in peer care, we’ll have . Thanks.
Tom Huang: Yes. Hey, Joanne. Why don’t we take the second one first, so that seems top of mind. We continue to expect gross margins will stabilize and in the mid 80s range as TearCare volumes increased their gross margins will approach that as OMNI. So thank you for your models. Mid 80s, is a nice place to be.
Paul Badawi: On the — hi, Joanne. On the reimbursement question, let’s go with OMNI first. OMNI the code to bill Omni the canaloplasty code was revalued 2 years ago. The professional fee was revalued at the same time as the stent fees were revalued. And so we’re now in the fully revalued phase. The reimbursement was adjusted to $600 for an OMNI procedure as of January 1st. So we’re operating with that economic profile relative to other procedures. I think it is the key, the professional fee for performing. OMNI has not dropped below any other professional fee for any competitive procedures. So I think that’s the key in assessing any potential pro fee reduction impact to OMNI utilization. It’s sufficient, it’s attractive. Nobody likes a reimbursement reduction, but it’s sufficient for performing high volume OMNI and it hasn’t changed relative to any other competing procedure.
For SION, the goniotomy hasn’t been revalued for a while, and so there is an expectation that at some point goniotomy will be revalued. So what does that mean? What does that mean for site? I think if goniotomy is revaluing the pro fee comes down quite a bit. There are a subset, a subset of surgeons or facilities who will perhaps rethink whether Goniotomy, it’s already just a subset of the MIGS. OMNI again, is our leading product. But I think even within that subset, some folks might rethink whether goniotomy is their procedure of choice or whether they want to move to something like canaloplasty with Omni. So I think it’s even with a goniotomy adjustment. I can see movement towards OMNI, which is ultimately what we’re driving towards.
Operator: Thank you.
Jim Rodberg: Thanks.
