Shares of implantable lens maker STAAR jump 46% as company to be acquired by Alcon

Shares of STAAR Surgical, a small-cap maker of implantable lenses, soared more than 46% yesterday, August 5, as news broke that the company would be acquired by the global eye care leader Alcon (Switzerland). The acquisition is aimed at bolstering Alcon’s position in the surgical vision correction market, particularly in addressing the growing global demand for alternatives to LASIK, Noble Capital Markets wrote.

STAAR jumped more than 46% yesterday to $27.00 per share. This marked the highest closing price since December 2 of last year, when shares closed at $27.72 apiece. As of yesterday's close, STAAR had a market capitalization of $1.3 billion.

Investors were encouraged by the news that the company will be acquired Alcon, which claims to be a world eye care leader. In the deal, STAAR is valued at about $1.5 billion, or $28 per share. That's 51% above the market price on Monday, August 4, the day before the deal was announced, when shares closed at $18.49 apiece.

The deal is expected to close in 6-12 months, the announcement said. It has been approved by the boards of both companies; now, regulators and shareholders must do the same.

STAAR Surgical manufactures implantable lenses, a minimally invasive procedure for vision correction in patients with moderate to high myopia. The acquisition of STAAR will complement Alcon's surgical vision correction business, the announcement said.

The need for such alternatives is expanding rapidly, Noble wrote. Global studies suggest that by 2050, half of the world’s population will be myopic, with approximately 500 million people falling into the high myopia category. This is a group that often requires advanced vision correction techniques, and some people will not be "ideal candidates" for LASIK or other laser procedures.

To STAAR shareholders, the deal will "deliver immediate and certain value at a significant premium, value that exceeds what we believe could be achieved under STAAR’s standalone strategy," STARR Board Chair Elizabeth Yeu was quoted as saying in the acquisition announcement.

STAAR is up 11% year to date but down almost 27% over the last 12 months. Ten of the 11 Wall Street analysts covering STAAR have a "hold" rating on the name, according to MarketWatch. The other analyst has it as a "buy." The average target price of $22 per share is below current quotes. 

The AI translation of this story was reviewed by a human editor.