STAAR Surgical’s largest shareholder has stated it plans to vote towards Alcon’s proposed $1.5bn takeover of the ailing eye specialist.
Broadwood Companions, which owns 27.3% of STAAR’s frequent shares, stated the transaction, introduced final month, suffered from “a number of course of and valuation deficiencies”.
The funding agency expressed disappointment over the actions of STAAR’s board, claiming it had did not pursue an “sufficient” sale course of. Based on Broadwood, STAAR’s board additionally displayed “intransigence” in relation to Broadwood’s books and document demand, stating it had acquired no paperwork since making the request greater than three weeks in the past.
STAAR’s Q1 2025 financials revealed a forty five% decline in gross sales to $42.6m, down from $77.4m in Q1 2024, with the US-based firm mainly attributing the sharp decline to weakened demand in China and extra headwinds attributable to authorities initiatives within the nation affecting gadget procurement.
Broadwood’s major level of competition pertains to the proposed monetary phrases of Alcon’s acquisition. The shareholder identified that Alcon beforehand provided $55 per share for STAAR when it moved to accumulate the corporate in October 2024 – a worth “far above” the present provide of $28 per share.
Alcon subsequently pulled again from its preliminary provide after studying that STAAR was going through stock administration challenges, with the revelation giving the Swiss firm pause over STAAR’s short-term efficiency and stability.
Nevertheless, Broadwood highlighted that these earlier challenges had now been addressed, and that STAAR had improved its value self-discipline, a decision Broadwood now expects will result in a “sharp rebound” in STAAR’s income and earnings within the coming quarters.
Bolstering these claims, Broadwood additionally highlighted that the outcomes of a medical trial [NCT06700460] evaluating Alcon’s LASIK platform to STAAR’s EVO Implantable Collamer Lens (ICL) for treating astigmatism are quickly due for publication. The shareholder stated the trial outcomes might have “important implications” for the aggressive positioning of the EVO ICL relative to LASIK, and in flip to STAAR’s “progress prospects and strategic worth” to potential acquirers inside the ophthalmic merchandise trade.
The corporate stated in an announcement: “Broadwood is anxious that stockholders are actually being requested to simply accept inferior phrases, although the challenges that adopted Alcon’s preliminary bid have been considerably resolved.”
In closing, Broadwood reiterated that it held “critical issues” in regards to the total equity and integrity of the gross sales course of, stating: “Along with the inadequate merger consideration, [the factors at hand] lead us to imagine that the acquisition shouldn’t be in the perfect curiosity of STAAR’s shareholders. Accordingly, Broadwood intends to vote towards the acquisition and asks the board to instantly rethink its advice thereof.”
