Shares fell sharply by 21.6% as investors were disappointed by a significant $8 million revenue reduction tied to VEVYE, reflecting an unforeseen deceleration in a key product's financial contribution and cautious near-term revenue outlook despite management’s assertions of strong demand.

• Reported revenue was notably impacted by an $8 million reduction specifically attributed to VEVYE, due to patient utilization patterns that outpaced initial models.
• While demand trends for key growth drivers (VEVYE, IHEEZO, and TRIESENCE) were described as accelerating and market share gains continued, these did not translate into the financial results investors anticipated this quarter.
• The company implemented pricing corrections and new business rules expected to stabilize revenue and realize benefits starting in Q2, indicating prior quarter weakness.
• Investments into commercial scaling were completed, including doubling the sales force, positioning the company for improved demand conversion and longer-term growth.
• Management emphasized operational fixes can mitigate problems, but the recent revenue miss underscores that correcting demand and financial capture challenges remains critical.