07.29.15
$6.6 Billion
KEY EXECUTIVES:
Jeff George, Global Head of Alcon
David Nieto, Chief Financial Officer
Ed McGough, Sr. VP, Global Manufacturing and Technical Operations
Jim Murphy, Region President, Japan
Michael Onuscheck, Global Franchise Head, Alcon Surgical
Riad Sherif, Region President, Europe, Middle East and Africa
Sergio Duplan, Region President, Latin America and Canada
Eric Van Oppens, Region President, Asia and Russia
Robert Warner, Region President, United States
Sue Whitfill, Head, Global Quality
Joanne Chang, M.D., Ph.D., Head of U.S. Clinical and Regulatory Affairs
NO. OF EMPLOYEES: 25,000
GLOBAL HEADQUARTERS: Ft. Worth, Texas
Globally, more than 285 million people live with vision impairment and blindness. More than 90 percent of vision problems can be prevented, treated or cured, provided patients have access to treatment. This isn’t just a market for Alcon, the second largest division of pharmaceutical giant Novartis AG. It’s a mission.
Through the 70-year-old company’s three main divisions—Surgical, Ophthalmic Pharmaceuticals and Vision Care—employees tackle the increasing need for technologies to treat vision impairment. A number of critical demographics are fueling expansion in the ophthalmic marketplace: Emerging markets access to and ability to pay for new technologies continues to grow (90 percent of people that are visually impaired live in developing countries, according to the World Health Organization); an increasing aging population worldwide and longer life expectancies; the growth of chronic diseases such as diabetes that have an impact on eyesight.
“Developing new products in an increasingly costly and heavily regulated environment requires that Alcon carefully select those projects that truly deliver on unmet patient needs. This is the focus of everything we do in Alcon R&D,” said Sabri Markabi, M.D., senior vice president, chief medical officer and head of Alcon’s research & development.
For fiscal 2014 (ended Dec. 31) the company’s product pipeline resulted in steady gains.
Alcon’s net sales for the year totaled $10.8 billion, a 3 percent increase from the previous year. Operating income increased 30 percent to $1.6 billion in the fiscal year. The Surgical division—which makes surgical equipment, intraocular lenses, and surgical packs, among others—sold $4.07 billion, up 5 percent. The Ophthalmic Pharmaceuticals franchise recorded $4.21 billion in sales, up 3 percent. The Vision Care unit, maker of contact lenses and lens care solutions, grew sales by 2 percent to $2.54 billion—contact lens sales were $1.89 billion and contact lens care was $698 million. (Editor’s note: MPO’s total for the Top Companies list for Alcon combines sales for the Surgical division plus contact lens sales from the Vision Care division—the majority of the unit’s sales generated by medical devices.)
Regionally, sales were driven by a strong performance in emerging growth markets, led by Asia (up 13 percent in constant currencies), particularly in China (up 23 percent in constant currencies), and Russia (up 27 percent in constant currencies). Latin America delivered robust growth (growing 17 percent in constant currencies), driven by the Surgical and Ophthalmic Pharmaceuticals franchises.
North America (up 4 percent in constant currencies) accelerated growth in the Surgical franchise, but it was offset by weak sales from Ophthalmic Pharmaceuticals. Sales in Europe, the Middle East and Africa (up 3 percent in constant currencies) were driven by moderate performances in the Surgical and Ophthalmic Pharmaceuticals franchises, according to the company. Sales in Japan grew 3 percent (in constant currencies), mostly attributable to Surgical franchise sales, offsetting weaker growth in Ophthalmic Pharmaceuticals and Vision Care.
Net sales for parent company Novartis increased by 1 percent to $58 billion in 2014. Net income increased by 12 percent to $10.3 billion in the fiscal year.
Management & Acquisitions Focus
In May 2014, Jeff George was appointed division head of Alcon, succeeding Kevin Buehler who retired from the company after a 30-year career.
Richard Francis was appointed as new division head of Novartis’ Sandoz division, succeeding George. Francis joined Novartis from Biogen Idec, where he has held roles of increasing responsibility across several therapeutic areas in both Europe and the United States over his 13-year career with the company.
As division head, George will continue to serve as a member of the executive committee of Novartis, reporting to Jimenez. Since joining Novartis in January 2007, George has held leadership positions of increasing importance in the Vaccines and Diagnostics division and the Pharmaceuticals division, becoming division head of Sandoz in December 2008. He holds an M.B.A. from Harvard University, a master’s degree from Johns Hopkins University, and a bachelor’s degree from Carleton College.
In October, Alcon appointed Eric Bruno as the new general manager for Alcon U.S. Vision Care. He replaced Jim Murphy, who was promoted to president, Alcon Japan.
Bruno most recently served as the global franchise head of Vision Care at Alcon. He joined Alcon in 2012. Prior to Alcon, Bruno spent 16 years at Johnson & Johnson in roles of increasing responsibility, including overseeing the company’s over-the-counter business and its Ethicon Endo Surgery business. Murphy replaced Seiichiro Matsumura, who left Alcon. Murphy joined Alcon in 1995, and has held roles of increasing responsibility across all three Alcon businesses.
In August, Alcon agreed to acquire WaveTec Vision, a privately held company that developed the ORA System, the first commercialized intra-operative guidance system for cataract surgeons implanting intraocular lenses (IOLs). The ORA System, which complements Alcon’s Verion image-guided preoperative diagnostic system, allows surgeons to see incisions and IOL alignment in real time to support optimal positioning of IOLs during cataract surgery. The ORA System performs additional measurements to confirm the surgeon’s lens selection and placement within the eye. Alcon integrated the ORA System into its existing cataract refractive suite.
“Alcon is continuously seeking new ways to address the needs of cataract patients, particularly those who live with astigmatism and presbyopia,” said George. “The ORA System provides intra-operative measurements, which are not available with current pre-operative technologies and is designed to help surgeons improve patient outcomes through optimal IOL selection and placement during surgery.”
Cataracts are the leading cause of treatable blindness worldwide. They affect more than 240 million people globally and are widespread among people 55 years of age and older.
New Technology
In November, the U.S. Food and Drug Administration’s (FDA) Ophthalmic Devices Advisory Committee recommended approval for Alcon’s AcrySof IQ ReSTOR Multifocal Toric Intraocular Lens (ReSTOR Toric IOL) for patients undergoing cataract eye surgery who are astigmatic and suffer from presbyopia. The committee agreed by a unanimous vote that the available clinical data demonstrate a favorable benefit-risk profile. While the FDA is not obligated to follow the recommendations of its advisory panels, it typically does so. Final approval was received from the agency in April.
“By combining two important technologies into one lens we can correct cataract patients’ presbyopia as well as their astigmatism,” said Joanne Chang, M.D., Ph.D., head of U.S. clinical and regulatory affairs at Alcon.
“There is, at present, an unmet medical need for a multifocal intraocular lens that can correct for spherical error, astigmatism, and near vision in a single surgical procedure for patients desiring less dependence on spectacle correction after cataract surgery,” said Stephen Lane, M.D., medical director, Associated Eye Care and adjunct clinical professor at the University of Minnesota. “The data presented today demonstrated a favorable benefit-risk ratio that I believe will translate into an exciting new treatment option for my patients and my colleagues’ patients across the U.S., without the requirement of additional surgical procedures.”
The product already was commercially available in the European Union, Australia, Canada, Japan and many other countries within Central and South America.
According to figures cited by Alcon, more than 3 million cataract surgeries are performed each year; of those patients more than 50 percent suffer from astigmatism. Astigmatism is a variation in the shape or curvature of the cornea and, if left untreated, astigmatism can cause blurred vision at all distances. Presbyopia is an eye condition that occurs as the natural part of aging. It involves the gradual loss of the eye’s ability to actively focus on close objects, such as smart phones, computers, books and menus. Once people reach 40 years of age, it is likely they will experience presbyopia. Worldwide, nearly 1.7 billion people experience vision issues due to presbyopia, and this number is expected to soar to more than 2 billion by 2020.
In September, Alcon introduced new products in its surgical vitreoretinal portfolio—the Ultravit High Speed Vitrectomy Probes, 27+ Vitrectomy Packs and Instrumentation, and the Finesse Flex Loop. The technologies are designed to help surgeons deliver a higher level of precision and efficiency during vitreoretinal surgery. Vitreoretinal surgery is the surgical removal of the vitreous gel from the middle of the eye. The procedure allows ophthalmic surgeons to better access the back of the eye when treating retinal diseases.
In July, the company got out in front of technology that promises to transform the future of eye care. The company entered into an agreement with a division of Google Inc. to in-license its “smart lens” technology for all ocular medical uses. The agreement with Google[x], a team within Google that is devoted to finding new solutions to big global problems, provides Alcon with the opportunity to develop and commercialize smart lens technology with the potential to transform eye care and further enhance Alcon’s pipeline and global leadership in contact lenses and intraocular lenses.
The agreement between Google and Alcon represents an important step for Novartis, across all of its divisions, to leverage technology to manage human diseases and conditions. Google’s key advances in the miniaturization of electronics complement Novartis’s pharmaceuticals and medical device expertise. Novartis aims to enhance the ways in which diseases are mapped within the body and ultimately prevented.
“We are looking forward to working with Google to bring together their advanced technology and our extensive knowledge of biology to meet unmet medical needs,” said Novartis CEO Joseph Jimenez. “This is a key step for us to go beyond the confines of traditional disease management, starting with the eye.”
“Our dream is to use the latest technology in the miniaturization of electronics to help improve the quality of life for millions of people,” said Sergey Brin, co-founder of Google. “We are very excited to work with Novartis to make this dream come true.”
Under the agreement, Google[x] and Alcon will collaborate to develop a smart lens that has the potential to address ocular conditions. The smart lens technology involves non-invasive sensors, microchips and other miniaturized electronics that are embedded within contact lenses. Novartis’ interest in this technology currently is focused in two areas. This first is to help diabetic patients manage their disease by providing a continuous, minimally invasive measurement of the body’s glucose levels via a “smart contact lens,” which is designed to measure tear fluid in the eye and connects wirelessly with a mobile device.
The second area is for people living with presbyopia who can no longer read without glasses, the smart lens has the potential to provide accommodative vision correction to help restore the eye’s natural autofocus on near objects in the form of an accommodative contact lens or intraocular lens as part of the refractive cataract treatment. The agreement marries Google’s expertise in miniaturized electronics, low-power chip design and microfabrication with Alcon’s expertise in physiology and visual performance of the eye, clinical development and evaluation, as well as commercialization of contact and intraocular lenses. Through the collaboration, Alcon seeks to accelerate product innovation based on Google’s smart lens technology.
“Alcon and Google have a deep and common passion for innovation,” said George. “By combining Alcon’s leadership in eye care and expertise in contact lenses and intraocular lenses with Google’s innovative smart lens technology and groundbreaking speed in research, we aim to unlock a new frontier to jointly address the unmet medical needs of millions of eye care patients around the world.”
Expansion in Asia
In April last year, Alcon opened the doors to a new state-of-the-art ophthalmic pharmaceutical manufacturing facility in Singapore. The new facility allows Alcon to be closer and quickly respond to its growing base of customers and patients throughout Asia.
Construction of the 330,000-square-foot facility began in 2009. The plant produces ophthalmic pharmaceutical products which address eye conditions such as glaucoma, dry eye, allergies and bacterial infections.
Alcon already has experience in operating a manufacturing plant in Singapore. In 2005, the company opened a contact lens manufacturing facility in the Tuas Biomedical Park, to meet the growing demand for Dailies contact lenses. Singapore has proven to be an attractive manufacturing environment for Alcon.
Through a comprehensive quality management system, Alcon is able to test and monitor all manufacturing processes, and all of its products pass rigorous inspections prior to shipment. At its startup, the facility employed approximately 150 associates, and is expected to continue to grow as production increases.
KEY EXECUTIVES:
Jeff George, Global Head of Alcon
David Nieto, Chief Financial Officer
Ed McGough, Sr. VP, Global Manufacturing and Technical Operations
Jim Murphy, Region President, Japan
Michael Onuscheck, Global Franchise Head, Alcon Surgical
Riad Sherif, Region President, Europe, Middle East and Africa
Sergio Duplan, Region President, Latin America and Canada
Eric Van Oppens, Region President, Asia and Russia
Robert Warner, Region President, United States
Sue Whitfill, Head, Global Quality
Joanne Chang, M.D., Ph.D., Head of U.S. Clinical and Regulatory Affairs
NO. OF EMPLOYEES: 25,000
GLOBAL HEADQUARTERS: Ft. Worth, Texas
Globally, more than 285 million people live with vision impairment and blindness. More than 90 percent of vision problems can be prevented, treated or cured, provided patients have access to treatment. This isn’t just a market for Alcon, the second largest division of pharmaceutical giant Novartis AG. It’s a mission.
Through the 70-year-old company’s three main divisions—Surgical, Ophthalmic Pharmaceuticals and Vision Care—employees tackle the increasing need for technologies to treat vision impairment. A number of critical demographics are fueling expansion in the ophthalmic marketplace: Emerging markets access to and ability to pay for new technologies continues to grow (90 percent of people that are visually impaired live in developing countries, according to the World Health Organization); an increasing aging population worldwide and longer life expectancies; the growth of chronic diseases such as diabetes that have an impact on eyesight.
“Developing new products in an increasingly costly and heavily regulated environment requires that Alcon carefully select those projects that truly deliver on unmet patient needs. This is the focus of everything we do in Alcon R&D,” said Sabri Markabi, M.D., senior vice president, chief medical officer and head of Alcon’s research & development.
For fiscal 2014 (ended Dec. 31) the company’s product pipeline resulted in steady gains.
Alcon’s net sales for the year totaled $10.8 billion, a 3 percent increase from the previous year. Operating income increased 30 percent to $1.6 billion in the fiscal year. The Surgical division—which makes surgical equipment, intraocular lenses, and surgical packs, among others—sold $4.07 billion, up 5 percent. The Ophthalmic Pharmaceuticals franchise recorded $4.21 billion in sales, up 3 percent. The Vision Care unit, maker of contact lenses and lens care solutions, grew sales by 2 percent to $2.54 billion—contact lens sales were $1.89 billion and contact lens care was $698 million. (Editor’s note: MPO’s total for the Top Companies list for Alcon combines sales for the Surgical division plus contact lens sales from the Vision Care division—the majority of the unit’s sales generated by medical devices.)
Regionally, sales were driven by a strong performance in emerging growth markets, led by Asia (up 13 percent in constant currencies), particularly in China (up 23 percent in constant currencies), and Russia (up 27 percent in constant currencies). Latin America delivered robust growth (growing 17 percent in constant currencies), driven by the Surgical and Ophthalmic Pharmaceuticals franchises.
North America (up 4 percent in constant currencies) accelerated growth in the Surgical franchise, but it was offset by weak sales from Ophthalmic Pharmaceuticals. Sales in Europe, the Middle East and Africa (up 3 percent in constant currencies) were driven by moderate performances in the Surgical and Ophthalmic Pharmaceuticals franchises, according to the company. Sales in Japan grew 3 percent (in constant currencies), mostly attributable to Surgical franchise sales, offsetting weaker growth in Ophthalmic Pharmaceuticals and Vision Care.
Net sales for parent company Novartis increased by 1 percent to $58 billion in 2014. Net income increased by 12 percent to $10.3 billion in the fiscal year.
Management & Acquisitions Focus
In May 2014, Jeff George was appointed division head of Alcon, succeeding Kevin Buehler who retired from the company after a 30-year career.
Richard Francis was appointed as new division head of Novartis’ Sandoz division, succeeding George. Francis joined Novartis from Biogen Idec, where he has held roles of increasing responsibility across several therapeutic areas in both Europe and the United States over his 13-year career with the company.
As division head, George will continue to serve as a member of the executive committee of Novartis, reporting to Jimenez. Since joining Novartis in January 2007, George has held leadership positions of increasing importance in the Vaccines and Diagnostics division and the Pharmaceuticals division, becoming division head of Sandoz in December 2008. He holds an M.B.A. from Harvard University, a master’s degree from Johns Hopkins University, and a bachelor’s degree from Carleton College.
In October, Alcon appointed Eric Bruno as the new general manager for Alcon U.S. Vision Care. He replaced Jim Murphy, who was promoted to president, Alcon Japan.
Bruno most recently served as the global franchise head of Vision Care at Alcon. He joined Alcon in 2012. Prior to Alcon, Bruno spent 16 years at Johnson & Johnson in roles of increasing responsibility, including overseeing the company’s over-the-counter business and its Ethicon Endo Surgery business. Murphy replaced Seiichiro Matsumura, who left Alcon. Murphy joined Alcon in 1995, and has held roles of increasing responsibility across all three Alcon businesses.
In August, Alcon agreed to acquire WaveTec Vision, a privately held company that developed the ORA System, the first commercialized intra-operative guidance system for cataract surgeons implanting intraocular lenses (IOLs). The ORA System, which complements Alcon’s Verion image-guided preoperative diagnostic system, allows surgeons to see incisions and IOL alignment in real time to support optimal positioning of IOLs during cataract surgery. The ORA System performs additional measurements to confirm the surgeon’s lens selection and placement within the eye. Alcon integrated the ORA System into its existing cataract refractive suite.
“Alcon is continuously seeking new ways to address the needs of cataract patients, particularly those who live with astigmatism and presbyopia,” said George. “The ORA System provides intra-operative measurements, which are not available with current pre-operative technologies and is designed to help surgeons improve patient outcomes through optimal IOL selection and placement during surgery.”
Cataracts are the leading cause of treatable blindness worldwide. They affect more than 240 million people globally and are widespread among people 55 years of age and older.
New Technology
In November, the U.S. Food and Drug Administration’s (FDA) Ophthalmic Devices Advisory Committee recommended approval for Alcon’s AcrySof IQ ReSTOR Multifocal Toric Intraocular Lens (ReSTOR Toric IOL) for patients undergoing cataract eye surgery who are astigmatic and suffer from presbyopia. The committee agreed by a unanimous vote that the available clinical data demonstrate a favorable benefit-risk profile. While the FDA is not obligated to follow the recommendations of its advisory panels, it typically does so. Final approval was received from the agency in April.
“By combining two important technologies into one lens we can correct cataract patients’ presbyopia as well as their astigmatism,” said Joanne Chang, M.D., Ph.D., head of U.S. clinical and regulatory affairs at Alcon.
“There is, at present, an unmet medical need for a multifocal intraocular lens that can correct for spherical error, astigmatism, and near vision in a single surgical procedure for patients desiring less dependence on spectacle correction after cataract surgery,” said Stephen Lane, M.D., medical director, Associated Eye Care and adjunct clinical professor at the University of Minnesota. “The data presented today demonstrated a favorable benefit-risk ratio that I believe will translate into an exciting new treatment option for my patients and my colleagues’ patients across the U.S., without the requirement of additional surgical procedures.”
The product already was commercially available in the European Union, Australia, Canada, Japan and many other countries within Central and South America.
According to figures cited by Alcon, more than 3 million cataract surgeries are performed each year; of those patients more than 50 percent suffer from astigmatism. Astigmatism is a variation in the shape or curvature of the cornea and, if left untreated, astigmatism can cause blurred vision at all distances. Presbyopia is an eye condition that occurs as the natural part of aging. It involves the gradual loss of the eye’s ability to actively focus on close objects, such as smart phones, computers, books and menus. Once people reach 40 years of age, it is likely they will experience presbyopia. Worldwide, nearly 1.7 billion people experience vision issues due to presbyopia, and this number is expected to soar to more than 2 billion by 2020.
In September, Alcon introduced new products in its surgical vitreoretinal portfolio—the Ultravit High Speed Vitrectomy Probes, 27+ Vitrectomy Packs and Instrumentation, and the Finesse Flex Loop. The technologies are designed to help surgeons deliver a higher level of precision and efficiency during vitreoretinal surgery. Vitreoretinal surgery is the surgical removal of the vitreous gel from the middle of the eye. The procedure allows ophthalmic surgeons to better access the back of the eye when treating retinal diseases.
In July, the company got out in front of technology that promises to transform the future of eye care. The company entered into an agreement with a division of Google Inc. to in-license its “smart lens” technology for all ocular medical uses. The agreement with Google[x], a team within Google that is devoted to finding new solutions to big global problems, provides Alcon with the opportunity to develop and commercialize smart lens technology with the potential to transform eye care and further enhance Alcon’s pipeline and global leadership in contact lenses and intraocular lenses.
The agreement between Google and Alcon represents an important step for Novartis, across all of its divisions, to leverage technology to manage human diseases and conditions. Google’s key advances in the miniaturization of electronics complement Novartis’s pharmaceuticals and medical device expertise. Novartis aims to enhance the ways in which diseases are mapped within the body and ultimately prevented.
“We are looking forward to working with Google to bring together their advanced technology and our extensive knowledge of biology to meet unmet medical needs,” said Novartis CEO Joseph Jimenez. “This is a key step for us to go beyond the confines of traditional disease management, starting with the eye.”
“Our dream is to use the latest technology in the miniaturization of electronics to help improve the quality of life for millions of people,” said Sergey Brin, co-founder of Google. “We are very excited to work with Novartis to make this dream come true.”
Under the agreement, Google[x] and Alcon will collaborate to develop a smart lens that has the potential to address ocular conditions. The smart lens technology involves non-invasive sensors, microchips and other miniaturized electronics that are embedded within contact lenses. Novartis’ interest in this technology currently is focused in two areas. This first is to help diabetic patients manage their disease by providing a continuous, minimally invasive measurement of the body’s glucose levels via a “smart contact lens,” which is designed to measure tear fluid in the eye and connects wirelessly with a mobile device.
The second area is for people living with presbyopia who can no longer read without glasses, the smart lens has the potential to provide accommodative vision correction to help restore the eye’s natural autofocus on near objects in the form of an accommodative contact lens or intraocular lens as part of the refractive cataract treatment. The agreement marries Google’s expertise in miniaturized electronics, low-power chip design and microfabrication with Alcon’s expertise in physiology and visual performance of the eye, clinical development and evaluation, as well as commercialization of contact and intraocular lenses. Through the collaboration, Alcon seeks to accelerate product innovation based on Google’s smart lens technology.
“Alcon and Google have a deep and common passion for innovation,” said George. “By combining Alcon’s leadership in eye care and expertise in contact lenses and intraocular lenses with Google’s innovative smart lens technology and groundbreaking speed in research, we aim to unlock a new frontier to jointly address the unmet medical needs of millions of eye care patients around the world.”
Expansion in Asia
In April last year, Alcon opened the doors to a new state-of-the-art ophthalmic pharmaceutical manufacturing facility in Singapore. The new facility allows Alcon to be closer and quickly respond to its growing base of customers and patients throughout Asia.
Construction of the 330,000-square-foot facility began in 2009. The plant produces ophthalmic pharmaceutical products which address eye conditions such as glaucoma, dry eye, allergies and bacterial infections.
Alcon already has experience in operating a manufacturing plant in Singapore. In 2005, the company opened a contact lens manufacturing facility in the Tuas Biomedical Park, to meet the growing demand for Dailies contact lenses. Singapore has proven to be an attractive manufacturing environment for Alcon.
Through a comprehensive quality management system, Alcon is able to test and monitor all manufacturing processes, and all of its products pass rigorous inspections prior to shipment. At its startup, the facility employed approximately 150 associates, and is expected to continue to grow as production increases.