Alcon ALC and LENSAR, Inc. LNSR, a global medical technology company focused on advanced laser solutions for the treatment of cataracts, recently entered into a definitive merger agreement. Per the agreement, Alcon will acquire LENSAR’s ALLY Robotic Cataract Laser Treatment System, proprietary Streamline software technology and LENSAR legacy laser system.
Alcon anticipates to close the transaction by mid-to-late 2025. The latest acquisition is expected to bolster its Surgical business.
Alcon Stock’s Likely Trend Following the News
Following the announcement, ALC’s shares climbed 2% to $92.35 yesterday. The company’s Surgical segment continues to benefit from its diverse portfolio and incremental innovations. Within the segment, Alcon is gaining synergies for its cataract consumables business due to various product launches. We expect market sentiment toward ALC stock to remain positive following the latest agreement.
Alcon has a market capitalization of $45.79 billion at present. The company has an earnings yield of 3.5% against the industry’s -3.4%. It beat on earnings in each of the trailing four quarters, delivering an average surprise of 5.92%.
Financial Details
Per the terms of the agreement, Alcon will purchase all outstanding shares of LENSAR for $14.00 per share in cash, with an additional non-tradeable contingent value right offering up to $2.75 per share in cash. It is conditioned on the achievement of 614,000 cumulative procedures with LENSAR’s products between Jan. 1, 2026, and Dec. 31, 2027.
The total potential consideration of $16.75 per share represents a premium of 24% to LENSAR’s 30-day VWAP and a premium of 47% to LENSAR’s 90-day VWAP, assuming the milestone is met. The transaction represents a total consideration of up to approximately $430 million. It is subject to customary closing conditions, including regulatory approval and consent from LENSAR’s stockholders.
More on Alcon’s Latest Agreement
The latest agreement is aimed at building Alcon’s femtosecond laser-assisted cataract surgery (FLACS) offering. FLACS is designed for surgeons to utilize a computer-guided laser to address and manage the high prevalence of visually significant astigmatism and perform corneal incisions. It also aids in capsulotomy, including refractive capsulotomy and lens fragmentation, eliminating the need for blade incisions.
There are more than 5 million cataract procedures in the United States, and approximately 32 million globally. Compared to other procedures, FLACS allows more precise, reproducible and reliable cataract surgery.
Lazard and Norton Rose Fulbright serve as the financial advisor and legal advisor to Alcon, respectively. While Wells Fargo is serving as LENSAR’s financial advisor, Latham & Watkins LLP is serving as its legal advisor.
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Industry Prospects Favor ALC
Per a report by Market Research Future, the cataract surgery devices market size was valued at $8.6 billion in 2023 and is projected to grow from $9.1 billion in 2024 to $13.53 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.2% during the period. Key market growth drivers include the growing prevalence of cataracts and vision impairment and the increasing prevalence of lifestyle disorders that develop cataracts, such as hypertension and diabetes.
Another Recent Development by ALC
Last month, Alcon launched the SYSTANEPRO Preservative-Free (PF) in the United States as the latest over-the-counter eye drop in the company’s dry eye portfolio. SYSTANE PRO PF is the longest-lasting eye drop in the SYSTANE portfolio with a unique triple-action , preservative-free formula for the temporary relief of burning and irritation due to dryness of the eye.
ALC Stock’s Price Performance
In the past year, Alcon’s shares have risen 11.3% against the industry’s 5.6% decline.
ALC’s Zacks Rank & Key Picks
Alcon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Masimo MASI, Boston Scientific BSX and Cardinal Health CAH. At present, Masimo sports a Zacks Rank #1 (Strong Buy), whereas Boston Scientific and Cardinal Health carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s shares have rallied 26.5% in the past year. Estimates for MASI’s 2024 earnings per share (EPS) have increased 1.2% to $4.10 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.1%.
Estimates for Boston Scientific’s 2025 EPS have jumped 2.9% to $2.85 in the past 30 days. Shares of the company have surged 47.1% in the past year compared with the industry’s growth of 9.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%.
Estimates for Cardinal Health’s fiscal 2025 EPS have increased 1.5% to $7.94 in the past 30 days. Shares of the company have jumped 17.5% in the past year against the industry’s 3.2% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.
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