STAAR Surgical Company (STAA)

The past six months have been significantly impacted by a proposed acquisition of STAAR Surgical by Alcon. STAAR Surgical rejected an initial takeover bid from Alcon but later agreed to merge at a lower valuation, facing shareholder opposition. The shareholder vote was postponed as STAAR sought more support, with reports indicating significant opposition to the Alcon deal. Financially, STAAR Surgical announced preliminary net sales for the third quarter, an increase compared to the prior year, but fiscal 2024 total net sales declined due to a significant decrease in ICL sales in China.

Demand for STAAR Surgical's ICL products exhibits seasonality, with the summer months generally being strong for implant procedures, particularly in markets like China. The distributor ordering cycle often begins in May in anticipation of this busy summer period. The company's outlook for 2025 also highlights the importance of the "summer high season in China" for a potential rebound in demand.

STAAR Surgical Co. is a global leader in ophthalmic surgery, specializing in implantable lenses and delivery systems. Their primary products are Implantable Collamer Lenses (ICL), particularly the EVO Visian ICL™ family, designed to correct myopia, hyperopia, and astigmatism. The company has phased out IOLs for cataract surgery to focus on ICL offerings, which accounted for approximately 99% of total sales in fiscal 2023.

STAAR Surgical has a significant global presence, with its lenses sold in over 75 countries. Its headquarters are in Lake Forest, California, with manufacturing in both the U.S. and Switzerland. The company has direct commercial operations in several countries and relies on independent distributors for sales and marketing in other international markets. In fiscal year 2023, 95% of the company's revenue was generated from product sales outside the United States.

STAAR Surgical is generally regarded as a technology leader in the ophthalmic industry, with high patient satisfaction for its EVO ICL™ product line. However, the contentious proposed acquisition by Alcon and public criticism from a major shareholder may have negatively impacted the company's reputation for corporate governance and shareholder alignment.

STAAR Surgical has 387 institutional owners and shareholders holding a total of 61,073,106 shares. Broadwood Partners is a significant shareholder, owning 27.5% of the outstanding common stock. Insider ownership stands at 5.85%.