Shares of Glaukos Corp (GKOS.N) could fall 30 percent in the next year, as years of success by the medical device maker has attracted competition from larger companies that threaten its market share, according to the April 10 edition of Barron's.
Glaukos shares have risen 150 percent to around $50 since June 2015, trading at 300 times expected earnings and 10 times forecast sales, the financial newspaper said.
The San Clemente, California-based company, which makes tiny titanium stents called iStents used to treat the progressive eye disease glaucoma, has had this market to itself in the United States.
But new rivals, including Novartis AG's (NOVN.S) Alcon unit and Allergan Plc (AGN.N), are set to challenge its dominance and put pressure on pricing, Barron's said.
Alcon, the world's largest eye care company, recently won approval for a competing product, while Glaukos is unlikely to have a new product on the market before the second half of next year, Barron's said.
"Although Glaukos dominates the stent market in minimally invasive glaucoma surgery, it is still a small company reliant on just one product for the foreseeable future, as bigger rivals emerge," the paper said. "That's a prescription for disappointment, and a potentially steep stock price decline."
(Reporting by John McCrank in New York; Editing by Jonathan Oatis)