TearCare system shows cost savings over cyclosporine in dry eye treatment

Published 30/07/2025, 12:12
TearCare system shows cost savings over cyclosporine in dry eye treatment

MENLO PARK, Calif. - Sight Sciences, Inc. (NASDAQ:SGHT), a medical device company with a market capitalization of $179 million and impressive 85.7% gross margins, announced Wednesday that its TearCare System demonstrated both cost savings and better health outcomes compared to cyclosporine 0.05% (CsA) in treating meibomian gland disease associated dry eye disease, according to a newly published cost-utility analysis. According to InvestingPro analysis, the stock appears undervalued despite recent market volatility, with 8 key insights available to subscribers.

The study, published in Expert Review of Pharmacoeconomics and Outcomes Research, found that TearCare resulted in annual per-patient cost savings of $903 compared to cyclosporine treatment ($4,916 versus $5,819) while delivering slightly higher quality-adjusted life years (0.76 versus 0.74). This cost-effectiveness is crucial for Sight Sciences, which generated $78.1 million in revenue over the last twelve months.

The analysis was conducted from a U.S. healthcare payer perspective using a one-year time horizon and assumed two TearCare procedures during that period.

"TearCare not only improves patient outcomes but also represents a more economically sustainable approach to managing MGD-associated dry eye disease," said Nathan Lighthizer, lead investigator of the study and Professor and Dean for the NSU Oklahoma College of Optometry.

The researchers noted that scenario analyses confirmed the robustness of the results, with TearCare consistently delivering cost savings and greater quality-adjusted life year gains over cyclosporine even when adjusting various assumptions.

Paul Badawi, Co-Founder and CEO of Sight Sciences, stated that the findings build upon the company’s growing body of clinical data and health economic support for TearCare, which he described as a core component of their strategy to increase patient access to interventional dry eye therapies.

The TearCare System is FDA-cleared for applying localized heat therapy in adult patients with evaporative dry eye disease due to meibomian gland disease, which is the leading cause of dry eye disease. While the company maintains a strong liquidity position with a current ratio of 10.47, InvestingPro data reveals deeper insights into the company’s financial health and growth potential through its comprehensive Pro Research Report, available for over 1,400 US stocks.

The information in this article is based on a press release statement from Sight Sciences.

In other recent news, Sight Sciences reported its first-quarter 2025 earnings with a net loss per share of $0.28, which did not meet the expected $0.23. The company’s revenue for the quarter was $17.5 million, falling short of the forecasted $18.4 million. Despite these results, Sight Sciences’ management remains committed to their revenue guidance for the year 2025. In related developments, Needham reiterated its Hold rating on the company, acknowledging the company’s successful navigation of the post-LCD Micro-Invasive Glaucoma Surgery market and the growth in reimbursed TearCare volumes. Needham noted that Sight Sciences is working to move its manufacturing out of China to mitigate tariff impacts. Additionally, Piper Sandler raised its price target for Sight Sciences to $4.00, citing the company’s MIGS technology and dry eye treatment pipeline as positive factors. The company also announced the appointment of Gerhard F. Burbach to its Board of Directors and the election of three Class I directors during its annual meeting. These developments reflect the company’s ongoing efforts to adapt and grow in a challenging market environment.

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