Alcon

Alcon is a manufacturer of ophthalmic products designed to prevent and treat vision. The company offers:

• technologies for the treatment of glaucoma;
• products for cataract, vitreoretinal and refractive surgery;
• intraocular lenses for cataract treatment and correction of refractive abnormalities (presbyopia  and astigmatism);
• disposable solutions (surgical kits, solutions, etc.).

History

2022

Alcon and Johnson & Johnson to pay $75 million for price collusion

On October 12, 2022, the Florida Federal Court (USA) announced that Alcon Vision and Johnson & Johnson decided to enter into a settlement agreement as part of a class action lawsuit by consumers.

The process was initiated back in 2015. Alcon Vision and Johnson & Johnson, as well as CooperVision, Bausch & Lomb and ABB Optical Group, were accused of conspiring and illegally curbing competition by introducing a unilateral pricing policy for disposable contact lenses. The defendants were charged with imposing on retailers the same minimum price for lenses, which is a violation of antitrust laws. In addition, suppliers prevented the provision of discounts to consumers in retail chains.

Alcon and Johnson & Johnson will pay $75 million

Initially, more than 50 lawsuits were filed against the listed companies, which were then combined into one case. In 2017, CooperVision agreed to resolve the conflict peacefully, paying $3 million. Later, the same decision was made by Bausch & Lomb and ABB Optical Group, for which the amount of penalties amounted to $10 million and $30.2 million, respectively.

And now it is reported that Alcon Vision and Johnson & Johnson followed the example of other defendants. In particular, Alcon Vision will pay $20 million, and Johnson & Johnson - $55 million. Thus, the total amount of fines for these two companies alone is $75 million, and in total, $118.2 million will be paid in favor of the plaintiffs as part of the proceedings.

The company has agreed to resolve this conflict and will continue to focus on providing patients with innovative products. We are responsible for marketing our products, and this decision is not an admission of wrongdoing.[1]

Alcon bought Aerie Pharmaceuticals for $753m

On August 23, 2022, it became known that contact lens manufacturer Alcon is acquiring glaucoma drug manufacturer Aerie Pharmaceuticals in a deal worth $753 million. Alcon is looking to strengthen its line of ophthalmic drugs, and the deal itself will close in the fourth quarter of 2022. Read more here.

Buying Eysuvis Pharmaceutical Eye Drops Business from Kala Pharmaceuticals

On May 23, 2022, contact lens manufacturer Alcon announced the purchase of Eysuvis pharmaceutical eye drop business from Kala Pharmaceuticals for $60 million. The deal is expected to close in the third quarter of 2022. Read more here.

2020: Agreement with PARC to develop technology for the treatment of eye diseases

On February 10, 2020, Xerox announced that its PARC research center had entered into an agreement with Alcon, an ophthalmology company. As part of the collaboration, the companies will develop innovative technologies for the treatment of eye diseases. Read more here.

2019: Novartis splits Alcon

In early April 2019, Novartis separated the ophthalmology division into a new company called Alcon and listed it. Novartis estimated Alcon's market value at $25 billion.

On April 9, 2019 , trading in Alcon shares began on the Swiss SIX Swiss Exchange and the New York Stock Exchange. The company is assigned the stock ticker ALC. Novartis shares will continue to trade on SIX under the symbol NOVN.

On April 9, 2019, trading in Alcon shares began on the SIX Swiss Exchange

For more than 70 years, Alcon has been committed to helping people improve their eyesight, and now, as an independent company, we are taking even more opportunities to achieve this mission. We are ready for sustainable growth as a separate company and the creation of long-term shareholder value, "said Alcon CEO David Endicott.

As a result of the Alcon branch, Novartis investors received one share for every five securities. The pharmaceutical company said that following this reorganization, Novartis will be able to focus on strengthening the main pharmaceutical portfolio.

According to Reuters, the market for technologies for eye surgery is estimated at $9 billion per year. In this market, Alcon competes with the American company Johnson & Johnson, as well as  with the German Zeiss^[2]

2010: Novartis buys Alcon for $38.5 billion

In early 2010, Novartis announced the acquisition of Alcon for $38.5 billion. Prior to that transaction, the buyer owned a 33% stake in the ophthalmic goods manufacturer.

Notes