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Alcon's (ALC) Product Launches, Market Recovery Aid Growth
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Alcon Inc. (ALC - Free Report) has been gaining from strength across the Surgical and Vision Care franchises. 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 gained 2% against the industry’s 25.6% fall. Alcon exited the first quarter with revenues and earnings beating the Zacks Consensus Estimate. The company reported year-over-year growth across all Surgical and Vision Care sales categories. The upside was driven by Alcon’s innovative product portfolio, solid execution by its commercial organization and ongoing market recovery. In Surgical, the company continued to gain market share on the strength of the PC-IOL portfolio.
Robust sales of the Hydrus Microstent, following the latest acquisition of Ivantis, are encouraging. In Vision Care, the company continued to see strong demand for our PRECISION1 and TOTAL brand families, including the newly-launched Dailies TOTAL1 for astigmatism and TOTAL30. The margin improvements buoy optimism. The company’s 2022 guidance with strong growth projections over 2021 is another upside.
Despite bearing the brunt of inflationary pressures across both Total Surgical and Vision Care franchises, the company was able to mitigate much of the impact through cost improvement efforts, strategic price increases and contract negotiations with suppliers.
In Presbyopia-correcting Intraocular Lens (PCIOLs), Alcon currently leads the market with over 60% of the global share and over 80% share in the United States. In Surgical, the company maintained a strong market share in PCIOLs, solidifying its market-leading position driven by strong demand for products like PanOptix and Vivity despite new market entrants. Vivity's non-defractive properties, ease of use and consistency of surgical outcomes make it particularly appealing.
In March 2022, the company launched the Clareon portfolio of intraocular lenses (IOLs) in the United States, including the ClareonMonofocal, PanOptix, and Vivity IOLs. The Clareon family delivers excellent vision, exceptional clarity and predictable refractive outcomes in a glistening-free IOL material. The company expects to bring the Clareon portfolio to additional markets throughout 2022 and 2023.
On the flip side, during the first quarter of 2022, Alcon recorded a decline in contact lens care stemming from supply chain challenges. In the reported quarter, the company witnessed increasing prices on certain commodities, including plastics and resins, and rising costs for labor and transportation, raising apprehension. Further, unfavorable foreign exchange impact and other macroeconomic headwinds are persistent challenges.
Challenging international market with subdued demand for ophthalmological products amid the pandemic is a concern. Also, a tough competitive landscape is a threat.
Other Key Picks
A few other stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Patterson Companies, Inc. (PDCO - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.6%.
AMN Healthcare has gained 22.7% against the industry’s 33.6% fall in the past year.
Patterson Companies, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 9.6%. PDCO’s earnings surpassed estimates in all the trailing four quarters, the average beat being 16.5%.
Patterson Companies has lost 0.9% compared with the industry’s 11.8% fall over the past year.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 9.5%. MCK’s earnings surpassed estimates in three of the trailing four quarters, the average beat being 19.5%.
McKesson has gained 72.6% against the industry’s 11.8% fall over the past year.
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Alcon's (ALC) Product Launches, Market Recovery Aid Growth
Alcon Inc. (ALC - Free Report) has been gaining from strength across the Surgical and Vision Care franchises. 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 gained 2% against the industry’s 25.6% fall. Alcon exited the first quarter with revenues and earnings beating the Zacks Consensus Estimate. The company reported year-over-year growth across all Surgical and Vision Care sales categories. The upside was driven by Alcon’s innovative product portfolio, solid execution by its commercial organization and ongoing market recovery. In Surgical, the company continued to gain market share on the strength of the PC-IOL portfolio.
Robust sales of the Hydrus Microstent, following the latest acquisition of Ivantis, are encouraging. In Vision Care, the company continued to see strong demand for our PRECISION1 and TOTAL brand families, including the newly-launched Dailies TOTAL1 for astigmatism and TOTAL30. The margin improvements buoy optimism. The company’s 2022 guidance with strong growth projections over 2021 is another upside.
Despite bearing the brunt of inflationary pressures across both Total Surgical and Vision Care franchises, the company was able to mitigate much of the impact through cost improvement efforts, strategic price increases and contract negotiations with suppliers.
Alcon Price
Alcon price | Alcon Quote
In Presbyopia-correcting Intraocular Lens (PCIOLs), Alcon currently leads the market with over 60% of the global share and over 80% share in the United States. In Surgical, the company maintained a strong market share in PCIOLs, solidifying its market-leading position driven by strong demand for products like PanOptix and Vivity despite new market entrants. Vivity's non-defractive properties, ease of use and consistency of surgical outcomes make it particularly appealing.
In March 2022, the company launched the Clareon portfolio of intraocular lenses (IOLs) in the United States, including the ClareonMonofocal, PanOptix, and Vivity IOLs. The Clareon family delivers excellent vision, exceptional clarity and predictable refractive outcomes in a glistening-free IOL material. The company expects to bring the Clareon portfolio to additional markets throughout 2022 and 2023.
On the flip side, during the first quarter of 2022, Alcon recorded a decline in contact lens care stemming from supply chain challenges. In the reported quarter, the company witnessed increasing prices on certain commodities, including plastics and resins, and rising costs for labor and transportation, raising apprehension. Further, unfavorable foreign exchange impact and other macroeconomic headwinds are persistent challenges.
Challenging international market with subdued demand for ophthalmological products amid the pandemic is a concern. Also, a tough competitive landscape is a threat.
Other Key Picks
A few other stocks in the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Patterson Companies, Inc. (PDCO - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.6%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has gained 22.7% against the industry’s 33.6% fall in the past year.
Patterson Companies, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 9.6%. PDCO’s earnings surpassed estimates in all the trailing four quarters, the average beat being 16.5%.
Patterson Companies has lost 0.9% compared with the industry’s 11.8% fall over the past year.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 9.5%. MCK’s earnings surpassed estimates in three of the trailing four quarters, the average beat being 19.5%.
McKesson has gained 72.6% against the industry’s 11.8% fall over the past year.