NEW YORK, March 24, 2025 /PRNewswire/ -- Monteverde & Associates PC (the "M&A Class Action Firm"), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating LENSAR, Inc. (NASDAQ: LNSR), relating to the proposed merger with Alcon. Under the terms of the agreement, LENSAR shareholders will receive $14.00 per share, with an additional non- ...

Core Viewpoint - Alcon has announced a definitive merger agreement to acquire LENSAR, enhancing its portfolio in cataract surgery technology with LENSAR's advanced laser solutions and proprietary software [1][2][3] Financial Details - Alcon will acquire all outstanding shares of LENSAR for $14.00 per share in cash, totaling approximately $356 million, with potential additional payments of up to $2.75 per share based on performance milestones [2] - The total potential consideration could reach $16.75 per share, representing a 24% premium to LENSAR's 30-day volume-weighted average price (VWAP) and a 47% premium to its 90-day VWAP, assuming milestones are met [2] Strategic Implications - The acquisition aims to leverage LENSAR's next-generation technologies to improve the efficiency and precision of cataract surgeries globally, addressing the high prevalence of visually significant astigmatism [3][4] - Alcon's CEO emphasized the opportunity to expand the reach of advanced femtosecond laser technology to more surgeons worldwide, enhancing surgical outcomes [3] Market Context - There are over 5 million cataract procedures performed annually in the U.S. and approximately 32 million globally, indicating a significant market for the enhanced technology [3] - LENSAR's ALLY Robotic Cataract Laser System™ is designed to improve operational efficiencies and reduce overhead in cataract surgery, which aligns with the growing demand for advanced surgical solutions [11] Transaction Timeline - The merger is expected to close in mid-to-late 2025, pending regulatory approvals and stockholder consent from LENSAR [4]

Summary of the Conference Call on China Healthcare: Medical Devices Industry Overview - The report focuses on the **China Healthcare** sector, specifically the **Medical Devices** industry, and discusses the impact of **Volume-Based Procurement (VBP)** policies on various product categories from 2025 onwards [1][2]. Key Points and Arguments VBP Expansion and Product Coverage - VBP has expanded significantly since its initiation in 2020, now covering a majority of product categories including medical consumables, IVD, insulin, and TCM products [2][11]. - The **6th batch of national VBP** is set to launch in the second half of 2025, which may include high-value consumables and TCM products [2][11]. Policy Maturity and Pricing Impact - The VBP policy has matured, with established rules for initial coverage and renewals, including grouping, ceiling prices, and revival mechanisms [3][14]. - The impact on ex-factory prices for consumables is expected to be largely one-time, focusing on regulating channel markups rather than ongoing price erosion [3][19]. Market Dynamics and Consolidation - Leading domestic players are positioned to consolidate market share post-VBP, benefiting from increased hospital coverage and better alignment with incentives compared to multinational corporations (MNCs) [4][31]. - Smaller players are likely to lose market share due to the competitive pressures from larger domestic firms [4][31]. Stock Implications - Preference is given to companies where the VBP impact is already priced in, with expectations of normalized growth and market share gains, such as **Eyebright**, **SNIBE**, **AK Medical**, and **Weigao** [5]. Earnings Volatility and Inventory Management - Near-term earnings volatility is anticipated for products with high channel inventory, particularly in categories like artificial joints [21]. - Companies like **AK Medical** have issued profit warnings due to inventory destocking and impairment losses [21]. Pricing Trends and Margin Stability - Historical data shows that pricing cuts from VBP have become more moderate over time, with average cuts decreasing from 76% in 2020 to 41% in 2023 for drug-eluting stents [19][30]. - Post-VBP margins for Chinese players have stabilized at 15-20%, comparable to global peers [20][30]. Product Upgrades and Market Share Changes - There is a trend towards product upgrades post-VBP, with higher-end products gaining market share due to increased affordability and reimbursement coverage [32][34]. - MNCs have seen a decline in market share across various product categories, while domestic players have gained significantly [34][36]. Future Considerations - The report highlights the need for clarity on the impact of VBP on large-scale imaging equipment and the upcoming DRG/DIP rules set to roll out in 2025 [46][49]. - Potential savings from VBP are estimated at **Rmb 80 billion** for the insurance fund, contributing to overall healthcare expense reductions [50][53]. Additional Important Insights - The report emphasizes the importance of strategic shifts by MNCs, such as J&J's move to direct sales, which has not yielded expected results [31]. - Companies are advised to monitor the evolving landscape of VBP and its implications for pricing strategies and market positioning [59][64]. This summary encapsulates the critical insights from the conference call regarding the current state and future outlook of the medical devices sector in China, particularly in relation to VBP policies and their implications for market dynamics and company performance.

Financial Performance - Q4 2024 sales reached $2.5 billion, a 6% increase year-over-year on a reported and constant currency basis[15] - Q4 2024 operating margin was 15.9%, up 700 basis points year-over-year[15] - Q4 2024 core operating margin was 20.1%, up 120 basis points year-over-year[15] - Q4 2024 diluted EPS was $0.57, down 34% year-over-year[15] - Q4 2024 core diluted EPS was $0.72, up 3% year-over-year[15] - FY24 free cash flow was $1.6 billion, compared to $0.7 billion in FY23[15] - FY24 sales reached $9.8 billion, a 5% increase year-over-year[20,35] - FY24 diluted EPS was $2.05, a 5% increase year-over-year[35] - FY24 core diluted EPS was $3.05, a 16% increase year-over-year on a constant currency basis[49] Segment Performance - Vision Care sales were $4.3 billion, representing 44% of FY24 sales[21] - Surgical sales were $5.5 billion, representing 56% of FY24 sales[21] FY 2025 Outlook - The company projects net sales of $10.2 to $10.4 billion, representing a 6% to 8% increase on a constant currency basis[63] - The company projects a core operating margin of 21% to 22%[63] - The company projects a core diluted EPS of $3.15 to $3.25, representing an 8% to 11% increase on a constant currency basis[63]

Regulatory Compliance and Legal Risks - Regulatory compliance costs are increasing due to stringent laws targeting fraud and abuse in the healthcare industry, which could lead to enforcement actions and penalties [111]. - The company is subject to complex and evolving regulations for medical devices, with the EU's new Medical Device Regulation (EU MDR) requiring certification for all new medical devices marketed in the EU as of May 2021 [120]. - The company anticipates that the global regulatory environment will continue to evolve, potentially impacting the cost and time needed for product approvals [121]. - The company may face significant penalties for non-compliance with environmental, health, and safety laws, which are becoming more stringent over time [132]. - The manufacturing process is highly regulated, and any significant failure to comply with these requirements could lead to production shutdowns or product shortages [130]. - The company must report any serious incidents involving its medical devices to regulatory authorities, which could lead to restrictions or market withdrawal of its products [134]. - Legislative and regulatory reforms in the healthcare sector could significantly impact the company's business and results of operations [122]. - Regulatory compliance is critical, as failure to comply with FDA regulations could result in fines, product recalls, or operational restrictions [136]. - Changes in regulations regarding prescription requirements for contact lenses could adversely affect the marketing and distribution of the company's vision care products [123]. Financial Performance and Obligations - The company incurred impairment charges of $9 million in 2024 and $62 million in 2022 due to the fair value of intangible assets being less than their carrying value [138]. - As of December 31, 2024, the company has outstanding debt of $4.6 billion, which may limit operational flexibility and increase borrowing costs [143]. - A decrease in the interest rate of 0.25% would increase the company's defined benefit obligation by $25 million, highlighting the potential underestimation of future pension obligations [140]. - The company made a one-time payment of $199 million in 2022 as part of a confidential settlement agreement related to intellectual property litigation [146]. - The company may need to raise additional funds for various purposes, which could dilute existing shareholders' ownership [144]. - Future equity issuances for acquisitions or capital transactions may dilute existing shareholders' ownership and adversely affect earnings per share [160]. Market and Operational Risks - The company faces significant risks from foreign currency exchange fluctuations, which can negatively impact reported sales, costs, and earnings, particularly when the US dollar strengthens against foreign currencies [109]. - The company faces risks from unauthorized distribution and counterfeiting, which could harm its reputation and profitability [141][142]. - Increased energy costs due to global conflicts, such as the ongoing situation in Ukraine, could adversely impact the company's manufacturing operations [156]. - The company is highly dependent on skilled personnel, and challenges in attracting and retaining talent could disrupt business operations [157][159]. Shareholder and Corporate Governance - The company maintains two exchange listings, which may lead to pricing differentials between the NYSE and SIX due to factors like currency fluctuations and trading schedules [161]. - The company may not declare dividends in the future, as the decision will depend on various factors including financial condition and corporate strategy [162]. - Any declared dividends will be in Swiss francs, meaning exchange rate fluctuations will impact the US dollar equivalent received by shareholders [163]. - Shareholders authorized the Board in 2023 to increase or decrease issued share capital by 10% and 5% respectively without additional approval, with the authorization expiring in May 2028 [169]. - Swiss law requires shareholder approval for certain corporate actions, which may limit the company's flexibility in capital management [169]. Legal and Jurisdictional Challenges - The company is subject to different US securities laws as a foreign private issuer, which may limit the information available to US shareholders [165]. - Financial statements are prepared under IFRS, which may lead to significant differences compared to US GAAP, affecting comparability with US companies [166]. - The company could lose its foreign private issuer status, which would require compliance with more extensive US domestic issuer regulations, potentially increasing legal and compliance costs [168]. - Enforcement of US judgments against the company may be difficult due to its organization under Swiss law, which complicates the service of process and enforcement of judgments [170]. - There is no treaty between Switzerland and the US for reciprocal recognition and enforcement of judgments, making it challenging to enforce US court judgments in Switzerland [171].

Key figures | | | Three months ended December 31 | | | | Twelve months ended December 31 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | Change % | | | | Change % | | | | | | | (1) cc (non-IFRS | | | | (1) cc (non-IFRS | | ($ millions unless indicated otherwise) | 2024 | 2023 | $ | measure) | 2024 | 2023 | $ | measure) | | Net sales | 2,477 | 2,332 | 6 | 6 | 9,836 | 9,370 | 5 | 6 | | Gross profit | 1,385 | 1,290 | 7 | 7 | 5,512 | 5,247 | 5 | 7 | | Operating income | 395 | 208 | 90 | 90 ...

Financial Data and Key Metrics Changes - The company reported sales of $2.4 billion for Q3 2024, reflecting a 6% growth year-over-year [11][26] - Core diluted earnings per share increased by 25% to $0.81, with a core operating margin of 20.6%, up 120 basis points year-over-year [11][30] - Free cash flow reached a record $1.3 billion for the first nine months of the year, compared to $592 million in 2023 [32] Business Line Data and Key Metrics Changes - Surgical franchise revenue grew by 5% year-over-year to $1.3 billion, with implantable sales at $422 million, also up 5% [26] - Consumables sales increased by 6% to $701 million, driven by vitret consumables and cataract consumables [27] - Vision care sales rose by 7% to $1.1 billion, with contact lens sales up 8% to $664 million [28] - Ocular health sales were $431 million, up 4% year-over-year, with strong performance from the Systane product line [29] Market Data and Key Metrics Changes - Global cataract procedures grew approximately 4%, with global ATI well penetration up about 200 basis points year-over-year, primarily driven by international markets [24] - The retail contact lens market was estimated to be up approximately 5%, mainly due to pricing and lens trade-up [24] Company Strategy and Development Direction - The company is focused on operational excellence and preparing for a series of product launches, including the Precision7 contact lens and new Systane formulations [12][14] - A strategic arrangement with OcuMension Therapeutics in China aims to enhance the commercialization of ophthalmic pharmaceuticals [15] - The company is expanding its ACIOL offering and launching new surgical equipment, including the Unity VCS and Voyager DSLT system [21][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the slower growth in Q4 is attributed to competitive sampling and expects stabilization in the U.S. market [41][42] - The company anticipates a stronger back half of 2025 due to new product launches, with a cautious approach to the front half [43] - The outlook for 2024 includes updated revenue guidance of $9.8 billion to $9.9 billion, with a constant currency sales growth rate of 6% to 7% [33][36] Other Important Information - The company expects to see normal seasonal pressure on gross margins in Q4 due to annual maintenance [30] - The anticipated U.S. launch of AR15512 is set for the second half of 2025, pending FDA clearance [16][17] Q&A Session Summary Question: Concerns about slower growth in Q4 and future growth rates - Management acknowledged the slower growth in Q4 and indicated that competitive sampling has dampened revenue, but expects stabilization in the U.S. market [41][42] Question: Insights on consumables demand and Voyager rollout - Management noted strong demand for vitret consumables and highlighted the potential of the Voyager device to improve glaucoma treatment accessibility [47][48] Question: Update on Unity VCS soft launch and growth expectations - The soft launch of Unity VCS has received positive feedback, and management expects accelerated growth in the equipment segment next year [65][66] Question: Factors leading to top line guidance reduction - Management explained that softness in the U.S. surgical market in Q2 and Q3 led to the adjustment in revenue guidance [62] Question: Competitive dynamics in the IOL market - Management indicated that competitive sampling is affecting revenue but expects the market to normalize, with a stable long-term growth outlook [96][98]

Financial Data and Key Metrics Changes - Sales grew by 6% to $2.5 billion, with core diluted earnings increasing by 15% to $0.74 per share and a core operating margin of 19.8% [8][20] - Core gross margin was 62%, down year-over-year due to higher inventory provisions and increased costs [22][23] - Free cash flow improved significantly to $667 million compared to $189 million in 2023, driven by higher cash from operations [24] Business Line Data and Key Metrics Changes - Surgical franchise revenue increased by 6% year-over-year to $1.4 billion, with implantable sales up 9% to $464 million [20] - Vision Care sales rose by 6% to $1.1 billion, with contact lens sales up 9% to $636 million, driven by innovation [21] - Ocular Health sales were up 2% to $423 million, with strong performance in eye drops, particularly Systane [22] Market Data and Key Metrics Changes - Global cataract procedures were estimated to be up low single-digits, with a notable increase in international markets [17] - The retail contact lens market grew approximately mid-single-digits, driven by pricing and steady wearer trade-up [17] - The company entered a strategic relationship with OcuMension to commercialize select eye drops in China, enhancing market presence [18] Company Strategy and Development Direction - The company is focused on product launches and has achieved significant regulatory milestones, including the FDA clearance for the Unity Phaco platform [8][9] - The acquisition of BELKIN aims to accelerate the global expansion of Direct Selective Laser Trabeculoplasty, enhancing the glaucoma portfolio [11] - The company plans to invest in new product launches while maintaining a core operating margin outlook of 20.5% to 21.5% [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of end markets and the innovative product portfolio, anticipating continued growth [8][27] - The company expects market growth to align with historical averages of mid-single-digits, with a focus on maintaining revenue guidance of $9.9 billion to $10.1 billion for the year [24][26] - Management acknowledged challenges in the US cataract market but remains optimistic about international growth and efficiency gains [66] Other Important Information - The company faced an inventory provision related to a quality issue with a raw material, leading to a limited voluntary recall [15] - The company is maintaining its core diluted earnings guidance range of $3 to $3.10 per share, reflecting a 15% to 18% constant currency growth over 2023 [26] Q&A Session Summary Question: Contact lens business pricing dynamics - Management noted that the contact lens market was up 6% retail, with the company achieving 9% growth, attributing part of this to pricing and product mix [30] Question: Updates on implantables market share - Management confirmed that the company still holds over 80% share of the PC-IOL market, with competitive pressures primarily in torics [33] Question: Growth dynamics for 2025 - Management indicated confidence in product flow and innovation for future growth, with several significant product launches planned [36] Question: Contribution from China VBP - Management stated that the contribution from VBP was relatively small, but overall penetration was up in multiple markets [43] Question: Dry eye product launch expectations - Management highlighted the need for faster-acting products in the dry eye market and is optimistic about the upcoming AR-15512 launch [48] Question: Supply chain issues and inventory provisions - Management explained the inventory provision was due to quality issues with a raw material and is in discussions with the supplier [50] Question: Capital allocation and M&A strategy - Management remains open to M&A opportunities in ophthalmology, focusing on technology-oriented bolt-on ideas [72]

Financial Data and Key Metrics Changes - Company reported Q1 2024 sales of $2.4 billion, a 7% increase year-over-year, with core diluted earnings rising 21% to $0.78 per share and core operating margin expanding to 22% [7][20][24] - Core gross margin for Q1 was 63.4%, consistent with the previous year, while core operating margin improved by 260 basis points year-over-year [23][24] - Free cash flow for the quarter was $229 million, a significant improvement from an outflow of $19 million in the same quarter last year [24] Business Line Data and Key Metrics Changes - Surgical franchise revenue increased by 6% year-over-year to $1.3 billion, with implantables sales also up 6% to $433 million, driven by advanced technology intraocular lenses [20][21] - Vision Care sales reached $1.1 billion, up 10%, with contact lens sales growing 11% to $671 million, supported by innovations in toric and multifocal modalities [21][22] - Ocular Health sales were $435 million, an 8% increase year-over-year, driven by the sustained family of artificial tears, which saw double-digit growth [21][22] Market Data and Key Metrics Changes - Global cataract procedures were estimated to be up approximately 2%, while the retail contact lens market grew by about 7%, driven by pricing and steady wearer trade-up [18] - In China, the company experienced low-teens growth, primarily in consumables and refractive equipment, ahead of the Volume Based Procurement (VBP) rollout [66] Company Strategy and Development Direction - The company is focused on launching the UNITY VCS phaco machine, expected to receive FDA approval soon, which aims to improve performance and efficiency in cataract and vitrectomy surgeries [8][9] - Plans to acquire Belkin Vision and its Eagle device are in place, which will enhance the company's glaucoma treatment portfolio [18][42] - Continued investment in contact lens innovation and manufacturing capacity is a priority, with six new contact lens platforms launched since 2020 [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong in-market performance and a robust product pipeline, anticipating continued growth in sales and operating leverage [28] - The company maintains full-year top-line guidance of $9.9 billion to $10.1 billion, with constant currency sales growth guidance increased to 7% to 9% [25][27] - Management acknowledged foreign exchange pressures but remains confident in achieving core diluted earnings guidance of $3 to $3.10 per share, reflecting 15% to 18% constant currency growth over 2023 [27] Other Important Information - The company is preparing a new drug application for its dry eye pharmaceutical candidate, AR-15512, expected to be submitted in the coming months [17] - The sustained family of artificial tears has shown strong growth, with significant potential for further expansion in the U.S. market [16][70] Q&A Session Summary Question: Expectations around UNITY launch and PowerVision timelines - Management expects UNITY to be approved in the next couple of months, with a careful launch planned for next year, while PowerVision data is anticipated late this year [31][32] Question: U.S. ATI wells penetration and competitive environment - Management noted that the U.S. market was slightly soft, but they gained share in monofocal and PCIOLs, with strong international performance [36][37] Question: Belkin Vision integration and consumables pricing - Management sees SLT as a key part of the glaucoma treatment portfolio, with no additional clinical studies anticipated for Belkin [42][46] Question: Constant currency revenue guidance drivers - The growth in contact lenses is a significant driver of the constant currency revenue guidance, with international markets performing well [38][40] Question: China VBP opportunity and its impact - Management indicated that the VBP rollout will ramp up through the back half of the year, with a full-year effect expected next year [75][76]

Alcon, Inc. (NYSE:ALC) Q4 2023 Earnings Conference Call February 28, 2024 5:30 PM ET Company Participants Daniel Cravens - Vice President and Global Head, Investor Relations David Endicott - Chief Executive Officer Tim Stonesifer - Chief Financial Officer Conference Call Participants Veronika Dubajova - Citi Ryan Zimmerman - BTIG Susannah Ludwig - Bernstein Anthony Petrone - Mizuho Group David Saxon - Needham & Company Larry Biegelsen - Wells Fargo Brett Fishbin - KeyBanc Capital Markets Tom Stephan - Stife ...