Alcon (ALC) Expands in the U.S. With New Clareon IOLs Launch

Alcon ALC recently launched its Clareon family of intraocular lenses (IOLs) in the United States. Based on Alcon’s advanced IOL material, Clareon claims to deliver better visual outcomes with long-lasting clarity.

This development fortifies the company’s growing Surgical business.

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Alcon noted that Clareon offers a sharp, crisp vision with a proprietary edge designed to help reduce glare and posterior capsular opacification. Its STABLEFORCE Haptics provides superior axial and rotational stability. Clareon Monofocal and Clareon Toric IOLs have already been implanted in more than one million eyes across more than 70 countries.

These IOLs are inserted using the next-generation, reusable Clareon Monarch IV Delivery System that was designed specifically for the new Clareon material. This system provides precise and controlled implantation. Clareon Monofocal is also available in the next-generation automated, single-use delivery system, AutonoMe.

With the latest launch, Clareon Monofocal, Clareon PanOptix, Clareon PanOptix Toric, Clareon Vivity and Clareon Vivity Toric IOLs are now available in the United States. According to Alcon, Clareon PanOptix offers the possibility of 20/20 vision at distance (far), intermediate (at arm’s length) and near (up close), with a continuous vision of 20/25 or better. On the other hand, Clareon Vivity is a non-diffractive extended depth of focus lens with wavefront-shaping X-WAVE technology. It delivers monofocal-quality distance with improved intermediate and functional near vision and with a monofocal visual disturbance profile.

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About Clareon Toric, Alcon expects the availability in the United States later this year. Alcon will be rolling out the Clareon family of IOLs in international markets throughout 2022 and 2023.

IOLs an Advanced Treatment Option for Cataract

Cataract is a cloudy area in the natural lens of the eyes affecting vision. Cataracts are the most common age-related eye condition and the leading cause of preventable blindness. Further, radiation exposure, steroids, diabetes and eye trauma can accelerate their development.

IOLs here provide a vital role in cataract treatment. Cataracts are treated by removing the eye's cloudy natural lens and surgically replacing it with an IOL. At present, more than 92% of cataract surgeries are considered successful when patients return to their normal routines within 24 hours.

Alcon's Surgical Business Growth Robust

In the fourth quarter of 2021, Total Surgical (consisting of Implantables, Consumables and Equipment/other) sales growth was 14% at CER. According to the company, it remained the market leader in presbyopia-correcting IOLs on the strength of both PanOptix and Vivity. The penetration of advanced technology lenses continues to increase. In the fourth quarter, Alcon added Hydrus Microstent to its portfolio of implantable devices.

In terms of the end-market franchise, barring India, global cataract procedures in the fourth quarter were up low to mid-single digits versus 2019. Growth in the U.S. market remained relatively consistent with the prior quarter. Growth in international markets saw a solid sequential improvement over the third quarter.

Share Price Performance

Alcon has outperformed the industry over the past year. The stock has rallied 8.5% against the industry’s 2.3% fall.

Zacks Rank and Key Picks

Currently, Alcon carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical space are Henry Schein, Inc. HSIC, Owens & Minor, Inc. OMI and AmerisourceBergen Corporation ABC.

Henry Schein has an estimated long-term growth rate of 11.8%. Henry Schein’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%. It carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Henry Schein has outperformed the industry over the past year. HSIC has gained 41.9% compared with the industry’s 13.7% rise over the past year.

Owens & Minor has a long-term earnings growth rate of 23.6%. Owens & Minor’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 32.4%, on average. It carries a Zacks Rank #2 (Buy).

Owens & Minor has outperformed the industry over the past year. OMI has gained 41% against an 11.8% decline of the industry in the said period.

AmerisourceBergen has a long-term earnings growth rate of 8.2%. In the trailing four quarters, AmerisourceBergen’s earnings surpassed estimates in three quarters and missed in one, delivering an average surprise of 2.3%. The stock currently has a Zacks Rank #2.

AmerisourceBergen has outperformed its industry in the past year, gaining 41.2% compared with the industry’s 13.7% rise.

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