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Alcon's (ALC) Surgical Arm Rebounds, New Launches Aid Growth
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Alcon Inc (ALC - Free Report) is witnessing a recovery in its Surgical and Vision Care businesses. The company’s focus on research and innovation is also encouraging. The stock currently carries a Zacks Rank #2 (Buy).
Alcon has outperformed the industry over the past year. The stock has rallied 9.4% compared with the industry’s 0.9% growth.
In Surgical, the company remains the market leader in presbyopia-correcting IOLs on the strength of both PanOptix and Vivity. In fourth-quarter 2021, Total Surgical (consisting of Implantables, Consumables and Equipment/other) reported sales growth of 14% at CER. According to the company, it is currently the market leader in presbyopia-correcting IOLs on the strength of both PanOptix and Vivity. Penetration of advanced technology lenses continues to increase. The global cataract surgery market was relatively consistent with the sequentially last-reported quarter. In the fourth quarter, Alcon added Hydrus Microstent to its portfolio of implantable devices.
In Vision Care, Alcon continues to see strong demand for PRECISION1 and PRECISION1 for Astigmatism, which are the company’s newest contact lenses for the mainstream market. In terms of end market, within Surgical, (barring India, which has been slower to recover from the pandemic), global procedures in the fourth quarter were up low to mid-single digits compared with the pre-pandemic period of 2019. Within the Vision Care end market, the contact lens market in the fourth quarter broadly returned to the 2019 level and grew in high single digits, led by the United States.
In terms of innovation, in Surgical in the fourth quarter, the company added Hydrus Microstent to its portfolio of implantable devices. Hydrus represents an exciting opportunity in the large and fast-growing mild-to-moderate glaucoma market.
In the equipment business, the company is gaining from product placements of phaco equipment, Active Sentry handpiece, the LuxORRevalia microscope and the Argos Biometer. The company has also unveiled the latest version of Cataract Connectivity with SMARTCataract.
In Vision Care, Alcon is expanding its contact lens offerings to the premium and middle-market segments by launching a steady stream of new silicone hydrogel daily and reusable products. The company is currently seeing strong demand for PRECISION1 and PRECISION1 for Astigmatism, which are its newest contact lenses for the mainstream market.
On the flip side, in the fourth quarter of 2021, in terms of end market, within Surgical, global cataract procedures were down in low single digits from 2019. Growth in international markets was still slow to recover. Within Vision Care, the contact lens market growth rates in international markets are still trailing behind the United States due to the varied pace of market recovery.
Challenging international markets with subdued demand for ophthalmological products amid the pandemic is a concern. Also, a tough competitive landscape is a threat.
Key Picks
A few stocks in the broader medical space that investors can consider are Owens & Minor, Inc. (OMI - Free Report) , NextGen Healthcare, Inc. and McKesson Corporation (MCK - Free Report) .
Owens & Minor has a long-term earnings growth rate of 8.8%. Owens & Minor’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 29.5%, on average. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Owens & Minor has outperformed the industry over the past year. OMI has gained 12.8% against a 16.7% industry decline in the said period.
NextGen has an estimated long-term growth rate of 5%. NextGen’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.5%. It currently carries a Zacks Rank #2.
NextGen has outperformed the industry over the past year. NXGN has gained 15.5% compared with the industry’s 38.3% fall over the past year.
McKesson has a long-term earnings growth rate of 11.8%. McKesson’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 20.6%, on average. It presently carries a Zacks Rank #2.
McKesson has outperformed the industry over the past year. MCK has gained 67.8% in the said period compared with 7.7% growth of the industry.
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Alcon's (ALC) Surgical Arm Rebounds, New Launches Aid Growth
Alcon Inc (ALC - Free Report) is witnessing a recovery in its Surgical and Vision Care businesses. The company’s focus on research and innovation is also encouraging. The stock currently carries a Zacks Rank #2 (Buy).
Alcon has outperformed the industry over the past year. The stock has rallied 9.4% compared with the industry’s 0.9% growth.
In Surgical, the company remains the market leader in presbyopia-correcting IOLs on the strength of both PanOptix and Vivity. In fourth-quarter 2021, Total Surgical (consisting of Implantables, Consumables and Equipment/other) reported sales growth of 14% at CER. According to the company, it is currently the market leader in presbyopia-correcting IOLs on the strength of both PanOptix and Vivity. Penetration of advanced technology lenses continues to increase. The global cataract surgery market was relatively consistent with the sequentially last-reported quarter. In the fourth quarter, Alcon added Hydrus Microstent to its portfolio of implantable devices.
In Vision Care, Alcon continues to see strong demand for PRECISION1 and PRECISION1 for Astigmatism, which are the company’s newest contact lenses for the mainstream market. In terms of end market, within Surgical, (barring India, which has been slower to recover from the pandemic), global procedures in the fourth quarter were up low to mid-single digits compared with the pre-pandemic period of 2019. Within the Vision Care end market, the contact lens market in the fourth quarter broadly returned to the 2019 level and grew in high single digits, led by the United States.
In terms of innovation, in Surgical in the fourth quarter, the company added Hydrus Microstent to its portfolio of implantable devices. Hydrus represents an exciting opportunity in the large and fast-growing mild-to-moderate glaucoma market.
Alcon Price
Alcon price | Alcon Quote
In the equipment business, the company is gaining from product placements of phaco equipment, Active Sentry handpiece, the LuxORRevalia microscope and the Argos Biometer. The company has also unveiled the latest version of Cataract Connectivity with SMARTCataract.
In Vision Care, Alcon is expanding its contact lens offerings to the premium and middle-market segments by launching a steady stream of new silicone hydrogel daily and reusable products. The company is currently seeing strong demand for PRECISION1 and PRECISION1 for Astigmatism, which are its newest contact lenses for the mainstream market.
On the flip side, in the fourth quarter of 2021, in terms of end market, within Surgical, global cataract procedures were down in low single digits from 2019. Growth in international markets was still slow to recover. Within Vision Care, the contact lens market growth rates in international markets are still trailing behind the United States due to the varied pace of market recovery.
Challenging international markets with subdued demand for ophthalmological products amid the pandemic is a concern. Also, a tough competitive landscape is a threat.
Key Picks
A few stocks in the broader medical space that investors can consider are Owens & Minor, Inc. (OMI - Free Report) , NextGen Healthcare, Inc. and McKesson Corporation (MCK - Free Report) .
Owens & Minor has a long-term earnings growth rate of 8.8%. Owens & Minor’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 29.5%, on average. It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Owens & Minor has outperformed the industry over the past year. OMI has gained 12.8% against a 16.7% industry decline in the said period.
NextGen has an estimated long-term growth rate of 5%. NextGen’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.5%. It currently carries a Zacks Rank #2.
NextGen has outperformed the industry over the past year. NXGN has gained 15.5% compared with the industry’s 38.3% fall over the past year.
McKesson has a long-term earnings growth rate of 11.8%. McKesson’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 20.6%, on average. It presently carries a Zacks Rank #2.
McKesson has outperformed the industry over the past year. MCK has gained 67.8% in the said period compared with 7.7% growth of the industry.