Alcon (ALC) on Track With Successful Global PRECISION1 Rollout
Alcon Inc ALC maintains a successful rollout of PRECISION1, with spherical lens currently available in key Latin America and Asia markets, and the PRECISION1 for Astigmatism available in Europe. In addition to this, the PRECISION1 for Astigmatism and PRECISION1 sphere is accessible across North America.
The PRECISION1 is intended for those having an on-the-go lifestyle. It addresses common factors like poor vision and comfort as well as handling issues, which cause 20% of new contact lens wearers to discontinue use within the first three weeks.
Few Words on PRECISION1
The PRECISION1 contact lenses offer accurate vision, long-lasting comfort and ease of handling, facilitating an exceptional lens-wearing experience for new users, especially those having long busy days.
It is worth noting that PRECISION1 is the first-and-only contact lens with Alcon’s proprietary SMARTSURFACE Technology, inspired by the water gradient lens material in DAILIES TOTAL. It has a permanent, micro-thin, high-performance layer of moisture at the lens surface, which aids in supporting a stable tear film.
More on the News
Per Alcon management, the launch of PRECISION1 contact lens in several global markets reinforces the company’s goal. The company is committed to delivering a comprehensive portfolio of lens-wearing options to eye care professionals (ECPs), based on the particular requirements of patients. With the launch of PRECISION1 and PRECISION1 for Astigmatism, ECPs and optical retailers can offer a next-generation contact lens with exceptional all-day performance to more lens wearers.
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Alcon is also offering an opportunity for customers to provide their new lens wearers with an exclusive activation program. This program consists of resources to enhance consumer confidence with their new lenses.
Industry Prospects
Per a report published in MarketsandMarkets, the global contact lenses market is anticipated to see a CAGR of 6.7% from 2020 to 2025. Factors such as the increasing prevalence of myopia, growing inclination toward contact lenses over prescription eyeglasses and the surge in the geriatric population worldwide are fueling market growth.
Further, per company-provided data, studies have demonstrated that while 41% of patients have astigmatism that requires correction, only 10% wear toric contact lenses. Thereby the launch of PRECISION1 for Astigmatism presents a lucrative opportunity for Alcon to attract new contact lens users.
Notable Developments
In November 2021, Alcon announced its intent to acquire Ivantis, Inc. – a renowned developer and manufacturer of the Hydrus Microstent. This buyout underscores Alcon’s commitment toward the surgical glaucoma space, further advancing its industry-leading portfolio across cataract, refractive, retina and glaucoma. Alcon will pay $475 million in upfront consideration to acquire Ivantis. The company might also be required to make additional contingent payments if certain regulatory and commercial milestones are met.
In August 2021, the company expanded its TOTAL brand with plans to launch the TOTAL30. Based on Alcon’s proprietary Water Gradient material, the TOTAL30 is the first-and-only monthly replacement lens that delivers a premium wearing experience for reusable contact lens wearers. This reusable lens with a Water Gradient surface remains durable for a complete 30 days. The TOTAL30 sphere has been commercially available in the United States since September 2021.
Price Performance
The stock has outperformed the industry over the past year. The stock has rallied 31.8% compared with the industry’s 4.5% rise.
Zacks Rank and Key Picks
Currently, Alcon carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Varex Imaging Corporation VREX and West Pharmaceutical Services, Inc. WST.
AMN Healthcare, carrying a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 67.3% versus the 59.6% industry decline.
Varex, carrying a Zacks Rank #1, has a long-term earnings growth rate of 5%. The company surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 115.3%.
Varex has outperformed the industry it belongs to in the past year. VREX has gained 64.9% versus the industry’s 6.5% fall.
West Pharmaceutical, sporting a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 27.6%. The company surpassed earnings estimates in the trailing four quarters, delivering an average surprise of 29.4%.
West Pharmaceutical has outperformed its industry over the past year. WST has rallied 62.1% versus the industry’s 10.7% rise.
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