Summary of the Conference Call on the Refractive Market Industry Overview - The refractive market, valued at $1.8 billion, includes equipment and consumables for surgical procedures treating myopia (nearsightedness) [2][13] - Key players in this market include Carl Zeiss, Alcon, Johnson & Johnson, and STAAR Surgical, with refractive surgery representing 20-25% of Zeiss' total revenues and a significant share of EBITA due to high margins [2][13] Market Dynamics - The market is expected to grow at a high mid-single-digit CAGR through 2029, driven by increasing myopia prevalence and a shift towards higher-priced procedures [3][21] - By 2050, approximately 50% of the global population is projected to have myopia, up from 35% today, with high myopia increasing from 5.5% to 10% [3][21] - China is the largest market, accounting for over half of global procedures, while the U.S. and Europe each represent around 15% [4][26] Competitive Landscape - The refractive market is characterized as an oligopoly, with the top four players controlling about 90% of the market [5][13] - Zeiss holds a monopoly on lenticule extraction procedures in the U.S. and China, while STAAR is dominant in phakic lenses [5][36] - Brand awareness and familiarity with procedures significantly influence patient choices, especially in China, where myopia is culturally viewed as a disease [4][31] Company-Specific Insights Carl Zeiss - Carl Zeiss Meditec is the leading player in the refractive market with an estimated market share of 32% [36] - The company’s refractive business constitutes about 22% of total revenues, with a gross margin of approximately 80% [2][35] - Recent challenges include a 30% cut in EBIT guidance due to a weak market in 2023/24, but the stock has rebounded by 30% from its January 2025 low [2][13] Alcon - Alcon generates about 3% of its revenues from refractive surgery, having entered the market through acquisitions [41][42] - The company has introduced advanced technologies like WaveLight Plus for personalized LASIK treatment [42] Johnson & Johnson - Johnson & Johnson's refractive business generates approximately $300 million, less than 1% of total revenues [44][45] - The company has developed the iLASIK technology suite and is expanding its offerings with the ELITA femtosecond laser [45] STAAR Surgical - STAAR focuses exclusively on implantable lenses for myopia treatment, with nearly 100% of its revenue derived from this segment [49][50] - The company has sold over three million ICLs worldwide, highlighting its strong market position [51] Bausch & Lomb - Bausch & Lomb's refractive sales are estimated to be less than 1% of total sales, with a focus on cataract and refractive surgery [54][55] Investment Implications - Carl Zeiss and Alcon are rated as Outperform with price targets of €74.00 and CHF 91.20, respectively [7][13] - Johnson & Johnson is rated as Market-Perform with a price target of $159.00 [7] Key Risks and Considerations - The emergence of local competitors in China poses a risk, although brand loyalty and awareness may mitigate this threat [4][26] - The U.S. market has seen sluggish growth due to negative perceptions around LASIK and a decline in procedure volumes [4][26] Conclusion - The refractive market is poised for growth driven by increasing myopia rates and a shift towards advanced surgical procedures, with key players like Carl Zeiss and Alcon leading the charge. However, challenges remain, particularly in the U.S. market and from local competition in China.

Company Overview - Alcon recently received FDA approval for TRYPTYR (acoltremon ophthalmic solution) 0.003%, indicated for treating dry eye disease (DED) [1] - The approval is expected to enhance the company's Vision Care segment, with plans to launch TRYPTYR in the U.S. in Q3 2025 [1] Stock Performance - Following the FDA approval announcement, Alcon's shares increased by 2.5% in after-market trading [2] - Year-to-date, Alcon's shares have gained 0.6%, while the industry has declined by 9.1% [2] Financial Performance - Alcon has a market capitalization of $42.18 billion [4] - The company has beaten earnings estimates in three of the last four quarters, with an average surprise of 2.85% [4] Product Significance - TRYPTYR is the first eye drop that stimulates corneal nerves to address tear deficiency, providing a new treatment option for many dry eye patients due to its rapid efficacy [5] - The FDA approval was based on two Phase 3 clinical trials involving over 930 patients, showing significant natural tear production as early as Day 1 [6] Industry Insights - DED affects approximately 38 million adults in the U.S. and 719 million globally, with increasing prevalence due to modern lifestyle factors [7][9] - The global DED market was valued at $7.02 billion in 2023 and is projected to reach $13.00 billion by 2032, with a compound annual growth rate of 7.1% from 2024 to 2032 [9] Recent Developments - Alcon recently introduced the Clareon PanOptix Pro intraocular lens for cataract patients in the U.S., enhancing its product portfolio [10]

Core Insights - The Turkey Contact Lens Market is projected to grow from USD 55.15 Million in 2024 to USD 91.08 Million by 2030, reflecting a compound annual growth rate (CAGR) of 8.68% [1][10]. Market Drivers - The increasing prevalence of vision disorders, with over one million people affected by visual impairments, is a significant driver for contact lens adoption. High incidences of myopia, hyperopia, and astigmatism are noted, particularly among youth due to increased digital screen time [5]. - The burgeoning middle class and improved access to optical care are facilitating market penetration beyond urban areas, creating opportunities for both domestic and international players [3]. Market Challenges - Limited consumer awareness and misconceptions about contact lens usage persist, especially in rural and semi-urban areas. Many consumers are uninformed about the benefits of daily disposables and lenses for specific conditions [6][7]. Market Trends - There is a rising demand for lifestyle-oriented lenses, with consumers increasingly viewing contact lenses as fashion accessories. This trend is particularly strong among Millennials and Gen Z, who seek colored and decorative lenses for personal style enhancement [8]. Key Players - Notable companies in the Turkey Contact Lens Market include Tech Contactlens San. Ve Tic. Ltd. Sti, Alcon Laboratories Trade. AS, Bausch + Lomb Saglik ve Optik Urunleri Tic. A.S, and Johnson & Johnson Turkiye [12].

Core Viewpoint - Alcon, Inc. reported a decline in core earnings per share (EPS) for Q1 2025, missing consensus estimates, while revenues also fell short of expectations, indicating challenges in both earnings and sales growth [1][2][13]. Financial Performance - The core EPS for Q1 2025 was 73 cents, down 6.4% year-over-year, and missed the Zacks Consensus Estimate by 3.9% [1] - Net sales for the quarter were $2.45 billion, a 0.3% increase from the previous year but below the consensus estimate by 2.3% [2] - The gross profit decreased by 0.1% to $1.38 billion, with a core gross margin contraction of 20 basis points to 56.3% [9] Segment Analysis - Surgical segment sales were $1.33 billion, down 1% year-over-year, while Vision Care segment sales reached $1.10 billion, up 1% year-over-year [4][7] - Within the Surgical segment, Implantables sales remained flat year-over-year, while Consumables saw a 6% increase at constant exchange rates [5][6] - Vision Care's Contact Lenses sales increased by 4% year-over-year, driven by product innovation [7] Cost and Margin Dynamics - The cost of net sales increased by 0.8% year-over-year to $1.07 billion, contributing to a decline in operating margin by 147 basis points to 14.1% [9] Cash Flow and Financial Position - Alcon ended Q1 2025 with cash and cash equivalents of $1.41 billion, down from $1.68 billion at the end of Q4 2024 [10] - Free cash flow for the quarter was $278 million, an increase from $229 million in the same period last year [10] 2025 Outlook - The company revised its 2025 net sales guidance to a range of $10.4-$10.5 billion, indicating a year-over-year growth of 6-7% [11] - Core EPS for the full year is now expected to be in the range of $3.05-$3.15, suggesting a growth of 2%-5% from 2024 levels [12] Market Reaction - Following the earnings release, Alcon's stock price fell by 2.4% in after-hours trading, reflecting investor concerns over the missed earnings and revenue estimates [2][13]

Core Insights - Alcon reported revenue of $2.45 billion for Q1 2025, a year-over-year increase of 0.3%, with EPS of $0.73 compared to $0.78 a year ago, missing the Zacks Consensus Estimate of $2.51 billion by -2.32% and EPS estimate by -3.95% [1] Financial Performance - The company's net sales by region included $1.31 billion in international sales, slightly below the $1.39 billion estimate, reflecting a year-over-year increase of 1.5% [4] - In the United States, net sales reached $1.14 billion, exceeding the $1.12 billion estimate [4] - Total Surgical net sales were $1.33 billion, below the $1.38 billion estimate, showing a year-over-year decline of 0.5% [4] - Total Vision Care net sales were $1.12 billion, slightly below the $1.14 billion estimate, with a year-over-year increase of 1.3% [4] Segment Performance - Total Surgical Consumables generated $712 million, compared to the $717.01 million estimate, marking a year-over-year increase of 3.8% [4] - Total Surgical Equipment/Other sales were $199 million, below the $223.04 million estimate, reflecting a year-over-year decline of 9.1% [4] - Total Vision Care Contact Lenses sales were $688 million, slightly below the $693.41 million estimate, with a year-over-year increase of 2.5% [4] - Total Vision Care Ocular Health sales were $432 million, below the $441.87 million estimate, showing a year-over-year decline of 0.7% [4] - Total Surgical Implantables sales were $420 million, below the $435.74 million estimate, reflecting a year-over-year decline of 3% [4] - Other revenues reached $22 million, exceeding the $17.50 million estimate, with a significant year-over-year increase of 46.7% [4] Stock Performance - Alcon's shares returned +4.7% over the past month, compared to the Zacks S&P 500 composite's +9.1% change, with a current Zacks Rank of 3 (Hold), indicating potential performance in line with the broader market [3]

ALCON INC. INTERIM FINANCIAL REPORT | INDEX | Page | | --- | --- | | Operating Performance | 2 | | Liquidity and Capital Resources | 7 | | Condensed Consolidated Interim Financial Statements of Alcon Inc. (unaudited) | | | Consolidated Income Statement | 10 | | Consolidated Statement of Comprehensive Income | 11 | | Consolidated Balance Sheet | 12 | | Consolidated Statement of Changes in Equity | 13 | | Consolidated Statement of Cash Flows | 14 | | Notes to Condensed Consolidated Interim Financial Statement ...

Core Viewpoint - Analysts expect Alcon to report quarterly earnings of $0.76 per share, reflecting a year-over-year decline of 2.6%, with revenues projected at $2.51 billion, an increase of 2.7% from the previous year [1] Earnings Estimates - There have been no revisions in the consensus EPS estimate for the quarter over the last 30 days, indicating stability in analysts' forecasts [1][2] Key Metrics Projections - Analysts estimate 'Net Sales- Total Surgical' to be $1.38 billion, representing a year-over-year increase of 2.8% [3] - The forecast for 'Net Sales- Total Vision Care' is $1.14 billion, indicating a year-over-year change of 2.7% [4] - 'Net Sales- Total Surgical- Consumables' is projected to reach $717.01 million, reflecting a 4.5% increase from the prior year [4] - 'Net Sales- Total Surgical- Equipment/other' is expected to be $223.04 million, showing a 1.8% year-over-year change [4] - 'Net Sales- Total Vision Care- Contact lenses' is anticipated to be $693.41 million, indicating a 3.3% increase from the previous year [5] - 'Net Sales- Total Vision Care- Ocular health' is projected at $441.87 million, reflecting a year-over-year change of 1.6% [5] - 'Net Sales- Total Surgical- Implantables' is expected to reach $435.74 million, indicating a 0.6% increase from the prior year [6] - The consensus for 'Revenues- Other revenues' stands at $17.50 million, reflecting a significant year-over-year increase of 16.7% [6] - 'Net sales by region- International' is projected to be $1.39 billion, indicating a 7.4% increase from the previous year [6] Stock Performance - Alcon shares have increased by 6.8% over the past month, compared to an 11.3% increase in the Zacks S&P 500 composite, with a Zacks Rank of 3 (Hold), suggesting expected performance in line with the overall market [7]

Company Overview - Alcon Inc. has launched the Clareon PanOptix Pro intraocular lens (IOL) for cataract patients in the U.S., utilizing ENLIGHTEN NXT Optical technology for superior light utilization and minimal light scatter [1][5] - The company has a market capitalization of $45.76 billion and has consistently beaten earnings expectations over the last four quarters, with an average surprise of 5.92% [4] Product Details - The Clareon PanOptix Pro is designed to enhance near and intermediate vision, offering a range of powers from +6.0 to +34.0 diopters, and includes features for blue light and ultraviolet filtering [6] - The lens is expected to recover 50% of light lost to scatter, improving visual clarity post-cataract surgery [5] Market Position and Trends - Alcon's Surgical segment is benefiting from a diverse product portfolio and strong demand for presbyopia-correcting IOLs, maintaining a leading market share [3] - Following the product launch, Alcon's stock experienced a slight decline of 0.1%, but has seen a 10.5% increase over the past year, outperforming the industry [2] Industry Prospects - The global intraocular lens market was valued at $4.0 billion in 2022 and is projected to grow at a compound annual growth rate of 6.3%, reaching $6.0 billion by 2029, driven by an increase in cataract surgeries and an aging population [10] Recent Developments - Alcon's Clareon Vivity IOL received CE Mark approval, and the company has entered an agreement to acquire LENSAR, enhancing its capabilities in advanced laser solutions for cataract treatment [11][12] - The PanOptix Pro will be available in select U.S. practices, with broader availability expected in May and additional markets rolling out by late 2025 [7][8]

This hugely promising market, while witnessing rapid advancements, is still in the early stages of development and the prospects are majorly untapped. Companies with a strong presence in the ophthalmic market, such as Alcon Inc. (ALC) , Glaukos Corporation (GKOS) and Regeneron Pharmaceuticals, Inc. (REGN) , are well- positioned to leverage this prospect, making them promising investment opportunities. Cell therapy is emerging as a cutting-edge precision treatment in ophthalmology and is gaining immense popu ...

Company Overview - Alcon (ALC) shares increased by 6% to $96.80 in the last trading session, following a higher-than-average trading volume, contrasting with a 2.1% loss over the past four weeks [1][2] M&A Activity - Alcon's stock price surge is attributed to optimism regarding its aggressive mergers and acquisitions strategy, including the acquisition of a majority interest in Aurion Biotech, Inc., which focuses on advanced cell therapies for eye diseases [2] - The company also entered a definitive merger agreement with LENSAR, Inc. to acquire the ALLY Robotic Cataract Laser Treatment System and associated technologies [2] Earnings Expectations - Alcon is projected to report quarterly earnings of $0.77 per share, reflecting a year-over-year decline of 1.3%, with expected revenues of $2.51 billion, an increase of 2.6% from the previous year [3] - The consensus EPS estimate has been revised down by 7.4% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Industry Context - Alcon is part of the Zacks Medical - Instruments industry, where another company, Nevro (NVRO), experienced a slight decline of 0.2% to $5.84, with a 2.1% return over the past month [4] - Nevro's consensus EPS estimate has decreased by 10.2% over the past month to -$0.91, representing a 30% decline from the previous year's report [5]