Good for Alcon, little effect on the patient, slight decrease in competition.

Implications: Alcon becomes part of a larger group that is very interested in profiting from eye care. The patient will probably not see any changes in labeling or distribution for a few years. The companies interlock well, but do not have a lot of overlap.....except for sales reps!

Analysis: I think Alcon will do well from this acquisition. It moves from Nestle, which has few eye care holdings to Novartis, which wholly owns Ciba Vision, and Ciba Vision Ophthalmics.

Novartis is currently purchasing only 25% of Alcon, I expect it to remain as an independent label. Novartis retains the option to purchase a majority of Alcon within 4 years. This allows Ciba Vision into places that Alcon had the lead space, the drugstore shelf. Alcon produces various versions of Opti-Free contact lens solution. It is by far the largest supplier of contact lens solutions in the United States with over 35% of the market. It was helped by the two leading competitors having recalls within the past 2 years. Bausch & Lomb Renu and AMO Complete were both recalled with a subsequent loss of market share. Novartis has an entry in this field, Aquify, but has made few inroads into the market. It was rumored that Aquify was being phased out.

For the patient, I don't expect much change unless, and until Novartis exercises its option to purchase a majority of Alcon. It will probably put a stop to production of Aquify multipurpose contact lens solution.

As far as competition in the eye care industry, a consolidation in solutions may be needed and a further result of the prior contact lens solution recalls. Ciba Vision Ophthalmics has a few products in the over the counter (OTC) pharmaceuticals, and a few prescription drugs. Alcon is a large provider of common antibiotics, anti-allergy and anti-inflammatory medications. All things I commonly prescribe on a daily basis.

Questions that I have for the industry are:

When will Vistakon, owned by Johnson & Johnson come out with a new contact lens solution?

When will Ciba Vision come out with a new Multifocal contact lens?

Will AMO survive without contact lenses?

Will Cooper Vision's new two week lenses actually work better than the Biofinity?

Will I have less sales reps visiting my office?