Alcon strikes $1.5bn deal to acquire ailing rival STAAR Surgical
Alcon has agreed to acquire struggling rival eyecare specialist STAAR Surgical in an equity deal valued at around $1.5bn.
The deal equates to the buyout of STAAR’s outstanding stock at $28 per share and will avail Alcon of STAAR’s EVO Implantable Collamer Lens (ICL) portfolio.
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STAAR’s EVO ICLs address vision correction for conditions including myopia with and without astigmatism via a minimally invasive, reversible procedure that does not remove corneal tissue.
Research estimates that 500 million individuals globally are currently considered ‘high myopes’, with 50% of the global population projected to be myopic to some extent by 2050.
Alcon said the addition of STAAR’s EVO ICL will complement its laser vision correction business and positively impact profit margins from year two post-transaction. The deal is expected to close within six to 12 months, pending customary closing conditions.
Alcon CEO David Endicott commented: “With the number of high myopes rising globally, the acquisition of STAAR enhances our ability to offer a leading surgical vision correction solution for those who are not ideal candidates for other refractive surgeries such as LASIK.
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By GlobalData“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’s acquisitive streak and the culmination of STAAR’s market challenges
The STAAR buyout marks the latest deal in what has been an acquisitive year for Alcon. In March, the Swiss-headquartered company acquired Lensar in a deal valued at around $356m, gaining access to Lensar’s ALLY robotic cataract laser treatment system, which Alcon expects to enhance the capabilities of its femtosecond laser-assisted cataract surgery (FLACS) technology.
Last month, Alcon announced plans to acquire LumiThera in a deal set to give it control of the US-based company’s photobiomodulation device for treating early and intermediate dry age-related macular degeneration (AMD).
For STAAR, the Alcon acquisition puts a stopper on a challenging period for the company. STAAR’s Q1 2025 financials revealed a 45% decline in sales to $42.6m, down from $77.4m in Q1 2024.
The California-based company chiefly attributed the decline to weakened demand in China and additional headwinds due to Chinese Government initiatives affecting device procurement. To steady the ship, STAAR revealed plans for a $30m share buyback programme in May to account for volatility in the global macroeconomic environment.
Commenting on the Alcon acquisition, STAAR CEO Stephen Farrell acknowledged that China headwinds had significantly impacted its viability as a standalone company.
Farrell said: “We believe the transaction with Alcon represents the best path forward and provides the greatest value for STAAR shareholders.”
STAAR’s view on the Chinese procurement market is likely about the country’s procurement practices for foreign entities. In June, the European Union (EU) voted to ban Chinese companies from participating in public procurement tenders in the bloc’s medical device sector for contracts valued over €5m ($5.72m) after an EU investigation found that fair access to foreign companies for public tenders in China was not reciprocated.
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