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Investors became so excited about the potential of Glaukos Corp. that from late 2023 until early February, they had more than doubled the price of each share to more than $160 and an $8.8 billion market cap.
“All the analyst reports were super bullish,” recalled Glaukos CFO Alex Thurman. “At $160 a share, it was priced at 19 times revenue – that’s a multiple priced to perfection.”
While analysts relied on their surveys of doctors to justify their optimism, Glaukos’ top executives knew that getting reimbursements through the complicated bureaucracy of Medicare would take much longer than investors expected. Since the executives were in a quiet period, they had to be careful about setting expectations for Glaukos, maker of the world’s smallest medical device that is inserted into an eye to treat glaucoma.
On Feb. 20, the Aliso Viejo-based company forecasted 2025 revenue would grow $475 million to $485 million, implying 25% increase at the midpoint. The forecast disappointed investors, who in the subsequent six weeks sent the shares down 53% to a 52-week low of $77.10 each.
“From a CFO’s perspective, you cannot control what the market does. You can help investors with expectations,” Thurman said.
“The bigger challenge is talking to employees, who for the most part don’t understand what’s going on. We told them that in every great company, there are peaks and valleys.”
Thurman, CFO for three years, eliminated all of Glaukos’ convertible debt and unwound a portion of an associated hedge instrument, which provided a significant amount of cash to the company.
He built a financial infrastructure to serve 16 international direct sales markets and integrated a new ERP system. And he also heads Glaukos’ technology systems, making sure the company isn’t hacked.
For all these reasons, he won a Business Journal CFO of the Year Award in the public sector on May 8.
At press time, the shares traded at $91.65 and a $5.2 billion market cap (NYSE: GKOS).
Missionary
Thurman attended Brigham Young University, where he earned a bachelor’s in accounting and Master of Accountancy in Tax. He also spent two years as a Mormon missionary in Uruguay.
“You definitely learn about people who are humble. Your eyes are open about how blessed we are in Orange County and the United States. You learn how to solve problems and help people who are in need. That’s something that I carried with me my whole life.”
After college, he began work at Arthur Andersen LLP, which he loved so much that he saw himself working there for the rest of his life. The Big 4 accounting firm famously collapsed in 2002 due to the Enron scandal.
He eventually landed at Deloitte, where he learned about one of its clients, Irvine-based Allergan Inc., which offered him a job.
“They reached out to me – would you like to move your family to Orange County and work for us? It made all the sense in the world. I loved the company, the culture.”
Allergan eventually underwent a contentious hostile takeover bid before it was finally acquired by Actavis in 2015. Through an acquaintance, he learned about Glaukos, which wanted to hire him. At the time, Allergan’s market cap topped $100 billion while Glaukos, which at the time only had a market cap hovering around $600 million.
“What really sold me was Tom Burns who laid out the vision of what they were trying to do,” he said.
“I made the move and loved it.”
Burns, who has been CEO since 2002, in January was named by the Business Journal as one of its executives of the year in the health sector.
Facts Given with the Right Tone
After working as a vice president for finance, Thurman became CFO in 2022.
“When I was asked to be the CFO, what I didn’t have a good appreciation was the amount of investor relation work that was required. That was the biggest challenge for me.”
He had to meet often with investors and analysts, who would be so granular as to judge the tone of his voice and whether he was in a good or bad mood. Thurman knows that the information he discloses can send Glaukos stock up or down hundreds of millions of dollars.
“It can be intimidating,” he said. “You need to always remember that we won’t say anything that’s not factual. Stick to the facts. You say the right facts in the right tone and don’t mislead anybody.”
Glaukos’ latest stock run began in late 2023 when it won approval for iDose, a revolutionary treatment for glaucoma. Company executives are excited not only about its potential for glaucoma, but they also believe it could eventually also replace other eyedrop medications to treat problems like dry eyes, keratoconus and presbyopia.
Thurman plans to stay at Glaukos.
“I will continue to put my head down and work hard. If I’m lucky, I can be here for a long time until I retire.”