Alcon Walks Away from STAAR Surgical Acquisition

Alcon has terminated its agreement to acquire STAAR Surgical Company, ending a five-month pursuit of the implantable lens manufacturer that had been valued at approximately US$28 per share.

The Swiss-based eyecare giant announced the termination on Tuesday, citing disciplined views on price and risk as key factors in its decision to abandon the deal originally announced in August 2025.

"Throughout this process we remained disciplined with our views on price and risk," said David Endicott, CEO of Alcon. "Moving forward, our refractive strategy is unchanged and our new wavelight® plus offering remains our focus for the most popular refractive surgery in the world, LASIK."

The collapsed transaction would have seen Alcon pay cash for all outstanding shares of STAAR common stock, representing a 59 per cent premium on STAAR's 90-day volume-weighted average price at the time of announcement and 51 per cent above its closing price on 4 August 2025.

As previously reported by eyesmart.com.au, the deal was designed to bolster Alcon's vision correction portfolio by adding STAAR's EVO family of implantable collamer lenses (ICLs). The acquisition had been positioned as a strategic move to capture the growing market for high myopia treatment, particularly for patients who are not ideal candidates for laser refractive surgery.

At the time, Endicott described the acquisition as enhancing Alcon's ability to offer surgical vision correction solutions across the full spectrum of myopia, from contact lenses to surgical interventions.

However, STAAR's operations had been facing significant headwinds, particularly in China, which had been impacting the company's performance. STAAR CEO Stephen Farrell acknowledged these challenges during the original announcement, noting that fluctuating demand in the Chinese market had created ongoing difficulties for the standalone business.

Focus Returns to LASIK and New Product Pipeline

With the STAAR acquisition now off the table, Alcon has reaffirmed its commitment to its core refractive surgery platform. The company is placing particular emphasis on its wavelight® plus offering for LASIK procedures.

Endicott signalled confidence in Alcon's existing growth strategy, highlighting that 2026 would be "an exciting year" for the company as it continues global launches of more than 10 major products across both its surgical and vision care franchises.

"These innovations substantively advance outcomes for eye care disorders and help patients around the world see brilliantly," he said.

The transaction, which had been unanimously approved by the boards of both companies, was originally expected to close within six to 12 months pending regulatory clearances and STAAR shareholder approval. Alcon had planned to fund the acquisition through short- and long-term credit facilities and had projected the deal would be accretive to earnings by the second year following completion.

The termination raises questions about STAAR Surgical's future strategic direction, particularly given the challenges the company has faced in maintaining momentum as a standalone entity. At the time of the original announcement, STAAR's board had determined that the transaction was in the best interest of shareholders as it delivered immediate and certain value at a significant premium over what could be achieved independently.

Neither company has provided specific details about the factors that ultimately led to the termination of the agreement.