Falcon LAC It has benefited from a strong product portfolio and its focus on research and innovation. Market share gains are also contributing to the growth. The stock currently has a Zacks Rank #2 (Buy).
In the presbyopia-correcting intraocular lens (PCIOL) market, Alcon currently leads the market with over 60% share globally and over 80% in the United States. In the surgical sector, the company maintains a solid market share in PCIOLs, driven by strong demand for products such as PanOptix and Vivity despite the entry of new entrants into the market. Vivity’s non-diffractive properties, ease of use and consistency of surgical outcomes make it particularly attractive.
In the surgical area, Alcon commercially launched SMARTCataract in the United States. This is expected to expand the company’s reach in the growing field of surgical ophthalmology. The company is currently seeing significant share increases driven by its new toric product launches including Precision1, Total30 and Dailies Total1.
The company will offer a dedicated cataract system called UNITY CS, which will be available in 2026. Importantly, UNITY brings with it new and innovative consumables that generate incremental benefits for the surgeon. The launch of these instruments will help the company secure the next decade of the company’s consumables business, which is a large, recurring and profitable revenue stream.
In the eye health space, the company is also expanding its business with the integration of Rocklatan and Rhopressa and has completed Phase 3 trials of AR-15512, the drug candidate for the treatment of dry eye. In addition, the company is experiencing growth in its OTC drug portfolio, driven primarily by favorable pricing and a sustained product family. The company is looking forward to the growing demand for its preservative-free multi-dose formulations, which are helping to expand the preservative-free drug category in the U.S.
Alcon’s surgical business continues to benefit from a diversified portfolio and incremental innovation. In terms of the latest developments in the implant field, Alcon technology continues to lead the market. Globally, one in three IOLs implanted is performed with an Alcon lens. For premium lenses, the statistic is even more impressive: one in two ATIOLs is an Alcon product. The company’s flagship lenses, Vivity and PanOptix, continue to lead the category in the United States and around the world. In addition, the company continues to expand in areas where it has significant opportunities to increase its share, such as China.
In the vision care area, Alcon is recording solid growth, based on strong sales of its contact lenses and eye health products. In the contact lenses area, the company is successfully executing its strategy of investing in fast-growing market segments where it has significant market share opportunities. As a result, Alcon is outperforming market growth in all categories in which it has launched new products.
In the contact lens sector, Alcon has consolidated its position as one of the fastest growing companies with its strategic investments. It is seeing great interest in its specialty lenses, including multifocal and toric lenses.
On the other hand, Alcon is experiencing inflationary pressures in electronic components, freight, labor, resins and plastics, which is impacting the company's margins. The company is also facing supply chain challenges in certain components, including microchips, resins and plastics, metals and filters. The company expects these inflationary pressures and supply chain challenges to continue in 2024. Cost of net sales in the first quarter increased 2.9% year-over-year. Our model estimates a 5.4% increase in the metric for the full year 2024.
Meanwhile, the ophthalmic industry is highly competitive. In the surgical business, Alcon competes with large manufacturers with multiple lines of business, as well as small manufacturers that offer a limited selection of specialized products. The company also faces competition from providers of alternative medical therapies, such as pharmaceutical companies that have the potential to disrupt core elements of its business.
In the eye care sector, the contact lens market is highly competitive and is characterized by declining sales volumes of older, reusable product lines and increasing demand for daily-wear contact lenses and advanced materials. Increasing product entry by contact lens manufacturers in Asia also poses a major threat.
Other key selections
Other high-profile actions in the broader medical field include Fields FURTHER, Boston scientist BSX and Myriad of genetics MOSQUITOESWhile Masimo currently has a Zacks Rank #1 (Strong Buy), Boston Scientific and Myriad Genetics each have a Zacks Rank #2.
Masimo shares have risen 10.8% over the past year. The company's earnings estimates have risen from $3.63 to $3.83 for 2024 and from $3.97 to $4.20 for 2025 over the past 30 days.
MASI's earnings beat estimates in each of the trailing four quarters, with an average surprise of 14.6%. In the most recently reported quarter, it posted an earnings surprise of 11.7%.
Boston Scientific's earnings per share estimates for 2024 have risen from $2.32 to $2.40 over the past 30 days. The company's stock has gained 56% over the past year, versus the industry's gain of 11.1%.
BSX earnings beat estimates in each of the last four quarters, with an average surprise of 7.2%. In the most recently reported quarter, it delivered an earnings surprise of 6.9%.
Myriad Genetics' earnings estimates for 2024 have risen from 3 cents to 5 cents per share over the past 30 days. The company's stock has gained 59.3% over the past year versus the industry's 3.1% decline.
MYGN earnings beat estimates in each of the last four quarters, with an average surprise of 213.4%. In the most recently reported quarter, it delivered an earnings surprise of a staggering 600%.
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