WaveTec Vision projects robust growth based on burgeoning premium IOL market

The president and CEO of WaveTec gives an update on the company’s latest moves at the Ophthalmology Innovation Summit.

Growing global markets for premium IOLs, an increasing number of post-LASIK patients undergoing cataract surgery and rising expectations will combine to boost sales and marketing opportunities for WaveTec Vision, a company official said.

WaveTec is poised to improve the refractive outcomes of lens-based surgery with its intraoperative aberrometry device, Thomas G. Frinzi, president and CEO of WaveTec Vision, said at the Ophthalmology Innovation Summit in Orlando, Fla.

“We think the market is ideally positioned for our technology,” Mr. Frinzi said. “Our customer, the ophthalmologist, continues to feel the downward pressure of Medicare reimbursement rates, which is really driving him or her to diversify into the premium channel.”

WaveTec manufactures the intraoperative wavefront aberrometer, which enables surgeons to improve the accuracy of IOL power calculations and manage astigmatic correction. It launched the ORA System (Optiwave Refractive Analysis) at the American Academy of Ophthalmology meeting.

Fortified business model

In 2011, WaveTec implemented a high-performance management system, retooled its business model, initiated three prospective studies and rebuilt its commercial field base organization, Mr. Frinzi said.

“We’ve certainly been a busy company over the last 12 months since I last presented here,” he said. “If I had to summarize in three words what the last 12 months have been about, it would be optimization, on-demand and performance.”

Currently, ORange users are attaining 78% accuracy within 0.5 D of the intended refractive target. With the introduction of the ORA System, the level of accuracy was expected to rise to 85% in the fourth quarter of 2011 and is projected to reach 90% in the second half of 2012 and 95% in the second half of 2013, Mr. Frinzi said.

“We think ORA is the foundation of driving us to LASIK-like outcomes, which will be 90%+ accuracy within 0.5 D in the coming months and years,” he said.

Impact on market

The increasing precision of intraoperative wavefront aberrometry promises to bolster surgeon confidence, Mr. Frinzi said.

“When you have surgeon confidence, the results speak louder than words,” he said.

A survey of 586 customers at 15 sites showed that WaveTec technology provided final IOL power calculations that were more accurate than surgeons’ initial choices.

WaveTec saw a 59% increase in on-demand usage of its device during the first three quarters of 2011, Mr. Frinzi said.

Average monthly demand for premium IOLs among the top 20% of WaveTec surgeons increased by 47%. That translated to an average increase of eight premium procedures per month and an additional $82,000 per site of annual revenue for premium IOL manufacturers. A 10% increase in demand for premium IOLs would increase the value of the premium IOL industry by $300 million. ORA is projected to generate $100 million by 2015, Mr. Frinzi said.

“It’s a wonderful cycle of success. When you get it right on the table the first time, you have a happier patient sooner in the postoperative process, which is the peak of when a patient is likely to refer family and friends so they too can experience better outcomes,” he said.

The prospective, randomized studies initiated by WaveTec are focused on standardized IOL power calculations (180 eyes), toric IOL power calculations (180 eyes) and post-LASIK IOL power (100 eyes). Early results of the IOL power study showed that WaveTec measurements yielded a mean prediction error of 0.28 ± 0.2 D and non-WaveTec measurements yielded a mean prediction error of 0.37 ± 0.33 D.

“WaveTec measurements also improved toric IOL and post-LASIK outcomes,” Mr. Frinzi said. “Whether you look at it from a mean, standard deviation or distribution point of view, the WaveTec ORA System is outperforming current standard of care significantly.” – by Matt Hasson

• Thomas G. Frinzi can be reached at WaveTec Vision, 66 Argonaut, Suite 170, Aliso Viejo, CA 92656; 949-273-5970; fax: 949-273-5976; email: tfrinzi@wavetecvision.com.
• Disclosure: Mr. Frinzi is president and CEO of WaveTec Vision.