Real Value for Alcon in Allegretto

Implications: Alcon has suffered with its LADARVision system recalls and lawsuits, and has looked particularly troubled following AMO's acquisition of VISX.  Although AMO/VISX remains the market leader for refractive correction, the Allegretto represents new technology with potential advantages in terms of accuracy and speed.  Moving forward with this opportunity shows that Alcon is serious about offering a complete refractive solution, which has great significance for the presbyopia-correcting and refractive pseudophakic lens business (Toric, ReStor). 

Analysis: The projected growth in surgical ophthalmology centers around the demographic bulge of baby boomers who desire spectacle freedom.  These people need correction of presbyopia as well as their other refractive errors, and the best solution to date for them is pseudophakic IOL implantation -- multifocal or accomodative.  However, surgeons implanting these lenses need the ability to perform enhancement procedures, usually in the form of LASIK or PRK, to treat residual astigmatism, myopia or hyperopia.  The acquisition of Allegretto means that Alcon can offer an outstanding laser vision correction product to its ReStor surgeons.