Just days after launching the first topical neuromodulator for dry eye disease (DED), Alcon, Inc. is making headlines yet again with a new announcement: The global eyecare company has agreed to purchase the STAAR Surgical Company.
Lots of developments as of late … but let’s start with STAAR Surgical.
Founded in 1982, the Lake Forest, California-based company is known for its implantable ocular lenses—marketed for use in ophthalmic surgeries across 75+ countries.
- To date: Over 3 million ICLs have been sold.
Talk about these products.
The lens manufacturer’s line of FDA-approved implantable collamer lenses (ICLs)—all phakic intraocular lenses (IOL)—extend to:
- EVO ICL
- For myopia and astigmatism
- Indicated for patients aged 21-45
- EVO+ ICL
- For myopia and astigmatism with an expanded optic
- Indicated for patients aged 21-45
- Visian ICL
- For myopia, hyperopia, and astigmatism
- Indicated for patients aged 21-45
Take note: All three ICLs were approved by the FDA in 2022.
Go on …
All three EVO ICLs are implantable lenses designed to address a wide range of vision correction needs via a reversible, minimally-invasive refractive procedure.
How this is done: The ICLs are implanted between the iris and the natural crystalline lens during the procedure—without corneal tissue removal.
And what’s unique about the lenses?
Their “collamer” composition, which refers to a patented, biocompatible lens material (FDA-approved in 2006) made of a blend of polymer and collagen—but more specifically:
- 60% poly-hydroxymethylmethracrylate (HEMA)
- 36% water
- 3.8% benzophenone
- 0.2% porcine collagen
The resulting effect: A lighter and hydrophilic lens intended to enable a better exchange of gas and nutrients, featuring a “rectangular one-piece plate-haptic design lens” that’s also plano-concave.
Alrighty, now to this acquisition.
Per the agreement, Alcon will purchase STAAR, its line of EVO IOLs, and “all outstanding shares of STAAR common stock for $28 per share in cash.”
Notably: Those shares are reported to represent an estimated “59% premium to STAAR’s 90-day volume weighted average price (VWAP)” as well as a “51% premium to a closing price of STAAR common stock” on Aug. 4.
- To define: VWAP refers to the average price a security has traded at throughout the day, indicative of both volume and price
- In other words: This gives traders insight into both the price trend and value of a security (in this case, for that of STAAR).
With that pricing in mind, what’s the total value?
In all, the transaction is estimated to have a total equity value of … $1.5 billion.
- Alcon also noted that the transaction is not subject to a financing condition, and that it intends to finance the transaction through the issuance of short- and long-term credit facilities.
That’s a pretty hefty amount … So why STAAR?
For Alcon, it just makes sense. (And let’s keep in mind: This is the second acquisition deal announced by the company in less than 30 days.)
Alcon already boasts a robust line of ophthalmic surgical products, with a surgical portfolio of technologies and devices for cataract, retinal, and refractive surgery—plus advanced technology IOLs (ATIOLs) for cataracts and refractive errors such as presbyopia and astigmatism.
- Plus: With this acquisition of EVO ICLs, the transaction is expected to complement the company’s laser vision correction division (not to mention benefit its profit margins in the near future).
And in Alcon’s words?
CEO David Endicott noted that, with an increasingly growing number of high myopes across the globe, the STAAR acquisition will enable the company to offer a surgical vision correction solution for patients who aren’t ideal candidates for other refractive surgeries, such as LASIK.
- “This transaction will allow us to provide treatment options across the full spectrum of myopia—from contact lenses to surgical interventions—reinforcing our commitment to addressing the most significant needs in eye care,” he stated.
As for STAAR: Its CEO, Stephen Farrell (appointed earlier this year), added that “Alcon has the capabilities and scale to accelerate EVO ICL adoption and bring the company’s technology to more surgeons and patients worldwide.”
Last question: When is the deal expected to close?
Reportedly, within the next 6 to 12 months (approximately), pending standard closing conditions like regulatory approval and approval from STAAR’s shareholders.
To note: Both companies’ Board of Directors have already unanimously approved the transaction.