Alcon and LENSAR, Inc. are going into business together, with the two companies announcing they have entered into a definitive merger agreement in which Alcon will purchase LENSAR.
No need for an Alcon refresh, but how about LENSAR?
As a commercial-stage medical device company, the Orlando, Florida-based LENSAR is known for its portfolio of advanced laser solutions for treating cataracts and managing astigmatism.
Most notably: The ALLY Robotic Cataract Laser System, a compact, ergonomic system incorporating “an extremely fast dual-modality laser” and integrated artificial intelligence (AI) into proprietary imaging and software.
- Specifically: Granted FDA clearance in 2022, the ALLY is marketed as combining both robotic intelligence and a surgeon’s precision to save time and overhead while also reducing energy delivered to the eye.
- Among its reported advantages:
- Up to 17 minutes saved per case (versus other laser cataract systems)
- Up to 27% reduction in mean phaco time (versus manual cataract surgery)
- 5x more laser cataract procedure performed with ALLY system compared to LenSx
- “Unsurpassed precision” for astigmatism outcomes
- Among its reported advantages:
Alrighty, now let’s talk details on this merger.
Per the agreement, Alcon will purchase all of LENSAR’s outstanding shares at $14 per share in cash (equating to an aggregated value of an estimated $356 million).
A conditional piece to this: An additional and non-tradeable contingent value right will offer up to $2.75 per share (also in cash)—pending “614,000 cumulative procedures with LENSAR’s products” (the ALLY system) performed between Jan. 1, 2026, and Dec. 31, 2027.
Got it. What else to know?
In total—and only if that cumulative 614,000-procedure milestone is met—the potential consideration of $16.75 per share is reported to be representative of “a premium of 24% to LENSAR’s 30-day VWAP” as well as “a premium of 47% to LENSAR’s 90-day VWAP.”
- Refresh: Volume-weighted average price (VWAP), based on both price and volume, is used to calculate the average price a security has traded at throughout the day and offer a look at liquidity, price movement, and possible changes in trends.
In all, the deal could total up to an estimated $430 million.
That’s a lot riding on the ALLY system.
Indeed. However, since the system initially launched in Q3 2022 (with a wider U.S. launch following in 2023), it has performed over 1 million procedures in just over 2 years.
- Plus: LENSAR shared in its Q4 2024 report that it installed 80 of the ALLY systems in 2024, bringing the total number to +130 units installed in total.
And the latest outlook for the company’s procedures has been positive: “Worldwide procedure volumes grew 24% in 2024 to nearly 170,000, with full-year U.S. procedure volumes increasing 21% year-over-year,” stated Nick Curtis, LENSAR president and CEO.
Now for the bigger picture: How does this deal benefit Alcon?
By adding the ALLY system—which encompasses LENSAR’s proprietary Streamline software technology and LENSAR legacy laser system—the company stands to expand its femtosecond laser-assisted cataract surgery (FLACS) portfolio.
- During FLACS: Surgeons use a computer-guided laser (versus a blade in traditional cataract surgery) to manage astigmatism as well as perform corneal incisions, capsulotomy, and lens fragmentation.
And at Alcon: The company’s FLACS portfolio currently only extends to the LenSx Laser System (cleared in 2009 for anterior capsulotomies)—to which LENSAR has emphasized the ALLY platform’s performance is superior.
Any comments from the companies themselves?
Alcon CEO David Endocott stated: “By leveraging our global footprint, we have the opportunity to deliver the benefits of advanced femtosecond laser technology to many more surgeons around the world and continue to improve efficiency in cataract surgery.”
Similarly, LENSAR’s Curtis added: “We are excited about the potential Alcon has to advance the industry in next-generation laser technology for refractive cataract surgery, furthering our and their mission to meet the needs of both surgeons and their cataract patients.”
And lastly: When is this deal supposed to be finalized?
The companies are looking to close in mid-to-late 2025, provided all conditions are met.