07.27.07
$2.2 Billion ($4.9B Total)
Key Executives:
Cary Rayment, Chairman, President and CEO
Jacqualyn Fouse, Sr. VP and CFO
Kevin Buehler, Sr. VP and Chief Marketing Officer
Gerald D. Cagle, Sr. VP of R&D
André Bens, PhD, Sr. VP, Global Manufacturing and Technical Operations and Chief Scientific Officer
No. of Employees: 13,000
World Headquarters: Hünenberg, Switzerland
Alcon may be majority owned by Nestle, but you won’t find a chocolate bar or bag of Purina Dog Chow in sight—though sight is the key word we’re looking for. Alcon is a manufacturer of ophthalmic surgical devices and pharmaceutical products, in addition to a consumer vision care line of solutions and eye drops.
Based in Hünenberg, Switzerland—with US operations in Fort Worth, TX, where it originally was founded—the company had a strong year with particularly rosy profit picture.
Alcon reported sales of $4.9 billion for fiscal 2006, compared to $4.5 billion in 2005. Net earnings jumped significantly to $1.4 billion, compared to $931 million for fiscal 2005, a 50% increase. Sales in 2006 were balanced with a near-even split between sales generated in the United States and in international markets, the company said. While all major regions contributed to growth, emerging markets were the fastest growing part of Alcon’s business, growing 21%. Emerging markets now account for 14.6% of its sales, and the company said markets such as China, India, Russia and Latin America retain significant potential for future growth. Developed markets, which represented 85.4% of Alcon sales in 2006, grew at a combined rate of 10.7%.
Though growing 9.3% for 2006, the company’s surgical division lagged behind its pharmaceutical (13.5%) and consumer vision care (17.4%) counterparts as sources of overall sales expansion for the year. Surgical sales increased to $2.2 billion in 2006, representing faster growth (by about two times) than the overall market. According to Alcon, the average annual growth rate for its surgical product line has been 10.2% during the last five years.
The company said its strategy for the surgical group is to offer a complete line of products for all aspects of cataract, vitreoretinal and refractive surgery, allowing it to meet most of an eye surgeon’s needs. In particular, Alcon’s AcrySof series of intraocular lenses for cataract surgery experienced sales growth of 16.2%. Sales of the AcrySof IQ lens jumped 163.2%, while sales of the multifocal AcrySof ReSTOR lens increased 88.5% to $102.2 million—though the company noted sales growth softened during the year as the US market for presbyopic-correcting lenses flattened. Alcon maintains that vitreoretinal products represent an area of consistent long-term growth and that it is the market leader in products for surgery on the back of the eye.
In July last year, Alcon reached a settlement with Santa Ana, CA-based Advanced Medical Optics (AMO). The settlement brought an end to all pending lawsuits, including an AMO initiated case concerning Alcon’s Infiniti vision system and the Advantec and Everest software upgrades for its Legacy brand surgical system, as well as three suits filed by Alcon against AMO concerning AMO’s Sovereign, Sovereign Compact and Prestige surgical systems in addition to various viscoelastic products. Resolution of the legal activities also allowed both parties to continue marketing their current phacoemulsification product lines on a royalty-free basis and contained provisions designed to reduce the likelihood of patent disputes on future product offerings. Alcon paid AMO $121 million.
“This comprehensive settlement resolves numerous complex patent issues involving our two companies,” said Cary Rayment, Alcon’s chairman, president and CEO, following the settlement. “Alcon will continue to market all existing phacoemulsification platforms while focusing our development efforts on technological advancements that will continue to revolutionize cataract surgery.”
So far, for fiscal 2007, Alcon reported surgical sales rose 10.6% to $581 million for the first quarter (ended March 31). Overall, company sales increased 14.3% to $1.3 billion, with earnings increasing 17% to $346 million.
Key Executives:
Cary Rayment, Chairman, President and CEO
Jacqualyn Fouse, Sr. VP and CFO
Kevin Buehler, Sr. VP and Chief Marketing Officer
Gerald D. Cagle, Sr. VP of R&D
André Bens, PhD, Sr. VP, Global Manufacturing and Technical Operations and Chief Scientific Officer
No. of Employees: 13,000
World Headquarters: Hünenberg, Switzerland
Alcon may be majority owned by Nestle, but you won’t find a chocolate bar or bag of Purina Dog Chow in sight—though sight is the key word we’re looking for. Alcon is a manufacturer of ophthalmic surgical devices and pharmaceutical products, in addition to a consumer vision care line of solutions and eye drops.
Based in Hünenberg, Switzerland—with US operations in Fort Worth, TX, where it originally was founded—the company had a strong year with particularly rosy profit picture.
Alcon reported sales of $4.9 billion for fiscal 2006, compared to $4.5 billion in 2005. Net earnings jumped significantly to $1.4 billion, compared to $931 million for fiscal 2005, a 50% increase. Sales in 2006 were balanced with a near-even split between sales generated in the United States and in international markets, the company said. While all major regions contributed to growth, emerging markets were the fastest growing part of Alcon’s business, growing 21%. Emerging markets now account for 14.6% of its sales, and the company said markets such as China, India, Russia and Latin America retain significant potential for future growth. Developed markets, which represented 85.4% of Alcon sales in 2006, grew at a combined rate of 10.7%.
Though growing 9.3% for 2006, the company’s surgical division lagged behind its pharmaceutical (13.5%) and consumer vision care (17.4%) counterparts as sources of overall sales expansion for the year. Surgical sales increased to $2.2 billion in 2006, representing faster growth (by about two times) than the overall market. According to Alcon, the average annual growth rate for its surgical product line has been 10.2% during the last five years.
The company said its strategy for the surgical group is to offer a complete line of products for all aspects of cataract, vitreoretinal and refractive surgery, allowing it to meet most of an eye surgeon’s needs. In particular, Alcon’s AcrySof series of intraocular lenses for cataract surgery experienced sales growth of 16.2%. Sales of the AcrySof IQ lens jumped 163.2%, while sales of the multifocal AcrySof ReSTOR lens increased 88.5% to $102.2 million—though the company noted sales growth softened during the year as the US market for presbyopic-correcting lenses flattened. Alcon maintains that vitreoretinal products represent an area of consistent long-term growth and that it is the market leader in products for surgery on the back of the eye.
In July last year, Alcon reached a settlement with Santa Ana, CA-based Advanced Medical Optics (AMO). The settlement brought an end to all pending lawsuits, including an AMO initiated case concerning Alcon’s Infiniti vision system and the Advantec and Everest software upgrades for its Legacy brand surgical system, as well as three suits filed by Alcon against AMO concerning AMO’s Sovereign, Sovereign Compact and Prestige surgical systems in addition to various viscoelastic products. Resolution of the legal activities also allowed both parties to continue marketing their current phacoemulsification product lines on a royalty-free basis and contained provisions designed to reduce the likelihood of patent disputes on future product offerings. Alcon paid AMO $121 million.
“This comprehensive settlement resolves numerous complex patent issues involving our two companies,” said Cary Rayment, Alcon’s chairman, president and CEO, following the settlement. “Alcon will continue to market all existing phacoemulsification platforms while focusing our development efforts on technological advancements that will continue to revolutionize cataract surgery.”
So far, for fiscal 2007, Alcon reported surgical sales rose 10.6% to $581 million for the first quarter (ended March 31). Overall, company sales increased 14.3% to $1.3 billion, with earnings increasing 17% to $346 million.