Yahoo Finance Alcon (ALC) Inks Buyout Deal to Expand Its Glaucoma Portfolio
Alcon ALC recently announced the closing of its deal to acquire BELKIN Vision. Per the terms of the agreement, Alcon will have access to BELKIN Vision’s Direct Selective Laser Trabeculoplasty (“DSLT”) technology.
The latest buyout should help Alcon expand its glaucoma portfolio and significantly accelerate the use of DSLT devices globally.
Financial Details
The deal has been closed with a total upfront consideration of $81 million, including a cash payment of approximately $65 million. It also includes the potential for up to $385 million in payments, contingent upon rigorous sales-based milestones.
Significance of the Acquisition
DSLT comes with significant advantages for both patient and practice. The device effectively lowers intraocular pressure (IOP) for open-angle glaucoma and ocular hypertension patients, with a proven safety profile. With this acquisition, Alcon is well-situated to transform the use of SLT in the glaucoma treatment paradigm.
The DSLT technology is approved in the European Union (E.U.) and the United Kingdom. The device received 510(k) Clearance from the FDA. With this acquisition, Alcon plans to continue to supply DSLT devices in the E.U. and U.K. regions. It also aims to make the device available to physicians in the United States by the end of 2024.
Alcon is also integrating DSLT into its Alcon Vision Suite ecosystem. This should help improve its customer experience.
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Market Prospects
Per a Precedence Research report, the global glaucoma treatment market was valued at $6.1 billion in 2023 and is expected to reach $8.4 billion by 2033, at a CAGR of 3.3%. Primary factors responsible for the market surge include the rising prevalence of glaucoma among the rapidly aging population, particularly in regions like North America, Europe and Asia-Pacific. Additionally, technological advancements in glaucoma management also drive market growth.
Looking at the market potential, Alcon's latest acquisition of Direct Selective Laser Trabeculoplasty (“DSLT”) technology is well-timed.
Other Notable Developments
In June 2024, Alcon received the FDA’s 510(k) clearance for its Unity Vitreoretinal Cataract System (VCS) and Unity Cataract System (CS). Both the systems will be introduced from Alcon’s Unity portfolio. With these proprietary technologies, the eye care major expects to hold its market-leading position in the global cataract and retina procedural packs (consumables used in each surgery) market.
Earlier this year, Alcon announced that AcrySof IQ Vivity and Clareon Vivity’s extended depth of focus (EDOF) intraocular lenses (IOLs) have surpassed more than 1 million implants worldwide.
Price Performance
In the past year, shares of ALC have risen 9.3% compared with the industry’s 2.0% growth.
Zacks Rank and Key Picks
Alcon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Hims & Hers Health, Inc. HIMS, The Joint Corp. JYNT, and Medpace Holdings MEDP. While Hims & Hers and The Joint currently sport a Zacks Rank #1 (Strong Buy) each, Medpace Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Hims & Hers Heath stock has surged 130.5% in the past year. Estimates for the company’s earnings have moved north 11.1% to 20 cents for 2024 in the past 30 days.
HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it posted an earnings surprise of a staggering 150%.
Estimates for The Joint’s 2024 earnings per share (EPS) have remained constant at 21 cents in the past 30 days. Shares of JYNT have surged 38.8% in the past year compared with the industry’s 6.6% growth.
In the last reported quarter, JYNT delivered an earnings surprise of 300%. It has a trailing four-quarter average earnings surprise of 18.75%.
Estimates for Medpace’s 2024 EPS have remained unchanged at $11.29 in the past 30 days. Shares of the company have surged 72.3% in the past year compared with the industry’s 5.7% growth.
MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.8%. In the last reported quarter, it delivered an earnings surprise of 30.6%.
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