Alcon is building out its portfolio of lens implants, with a $1.5 billion deal to acquire the flagging Staar Surgical and its focus on correcting nearsightedness.
Staar’s Evo and Visian implantable collamer lenses offer an alternative to glasses and contacts, as well as LASIK surgery. Designed for patients with moderate to high myopia, regardless of astigmatism, they are placed between the iris and the eye’s natural lens through a minimally invasive procedure. Staar’s catalog also addresses farsightedness, though it is not yet approved in the U.S.
The acquisition agreement will see Alcon pay a premium of about 59% over Staar’s average stock price going back three months, amounting to $28 per share in cash. The company said it plans to finance the deal through short- and long-term credit facilities.
“This transaction will allow us to provide treatment options across the full spectrum of myopia—from contact lenses to surgical interventions—reinforcing our commitment to addressing the most significant needs in eye care,” Alcon CEO David Endicott said in a statement.
Alcon estimates that half of the world’s population will have some form of nearsightedness by the year 2050, while nearly 500 million people today are living with high-grade myopia.
The deal for Staar comes as the California-based company faces declining demand in China. This past May, as it reported its first-quarter earnings results, Staar said net sales had dropped 45% year-over-year—down to $42.6 million from $77.4 million—due to a planned reduction of channel inventory in the country.
Outside of China, Staar said net sales were up 9%, and that it expected to get back on track in the country in the third quarter of this year.
“Our results do not reflect the earnings power of our business or the strength of our brand,” CEO Stephen Farrell said at the time. Farrell was named chief in February, replacing Tom Frinzi, amid layoffs of about 115 employees at the company. The next month saw Staar reorganize its C-suite, with the departures of its chief financial and technology officers.
Staar has also been working to shift its manufacturing base to avoid new China tariffs, including by delivering inventory into the country ahead of the duty date, and planning to ramp up production in Switzerland while slowing its U.S. facilities.
“We believe the transaction with Alcon represents the best path forward and provides the greatest value for STAAR shareholders,” Farrell said in the deal announcement. “As we’ve shared, fluctuating demand in China over the past two years has continued to create significant headwinds for STAAR as a standalone company. I'm proud of our team’s efforts to address recent challenges, but there is more work to do. As a significantly larger company, Alcon has the capabilities and scale to accelerate EVO ICL adoption and bring our innovative technology to more surgeons and patients worldwide.”
The companies said they expect the deal to close within six to 12 months.