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On Monday, BTIG analysts downgraded LENSAR Inc. (NASDAQ:LNSR) stock from Buy to Neutral following the recent acquisition announcement by Alcon. The definitive agreement, disclosed on Monday, March 24, 2025, details Alcon’s (NYSE:ALC) purchase of LENSAR at $14.00 per share, with an additional contingent value rights offering of $2.75, culminating in a total per-share value of $16.75. This offer represents approximately a 29% premium on LENSAR’s shares and warrants. The deal comes after LENSAR’s impressive 235% surge over the past six months, with the company maintaining strong liquidity metrics and a healthy current ratio of 2.8.According to InvestingPro analysis, LENSAR shows strong financial health indicators, with liquid assets exceeding short-term obligations. Subscribers can access 8 additional ProTips and comprehensive financial metrics for deeper analysis.
The transaction between the two companies is anticipated to finalize in the latter half of fiscal year 2025. BTIG analysts have recognized the acquisition as beneficial for both entities. LENSAR, known for its ALLY System, has captured over 20% of the femtosecond laser-assisted cataract surgery (FLACS) market, receiving high praise from clinicians for its technology. The acquisition is set to bolster Alcon’s position as a leader in the cataract equipment sector.
Under the terms of the acquisition, LENSAR is expected to maintain a compound annual growth rate (CAGR) of approximately 23% in procedure volume. Starting from roughly 169,000 procedures in fiscal year 2024, the company is tasked with achieving a cumulative target of around 614,000 procedures by fiscal year 2027 to fulfill the conditions of the agreement. This target aligns with LENSAR’s demonstrated growth trajectory, having achieved 26.87% revenue growth in the last twelve months.
The strategic move by Alcon to acquire LENSAR is seen as a consolidation of its market presence in the cataract surgery space, with the ALLY System’s growing adoption and the positive clinical feedback reinforcing the company’s decision. The acquisition is poised to provide Alcon with a competitive edge in the industry by integrating LENSAR’s advanced technology into its portfolio.
In light of the acquisition agreement and its implications, BTIG has adjusted its stance on LENSAR stock to reflect the new circumstances surrounding the company’s future operations and growth prospects. The market will continue to monitor the progress of the acquisition and its impact on both LENSAR’s and Alcon’s business trajectories.
In other recent news, Alcon has announced its plan to acquire LENSAR, Inc. for up to approximately $430 million. The deal involves purchasing all outstanding shares of LENSAR at $14.00 per share in cash, with a potential additional payment based on future performance milestones. This acquisition is expected to enhance Alcon’s femtosecond laser-assisted cataract surgery offerings. The transaction is anticipated to close in mid-to-late 2025, pending regulatory and stockholder approvals.
Meanwhile, LENSAR reported its fourth-quarter 2024 financial results, revealing revenue of $16.7 million, surpassing analyst estimates of $14.95 million. This marks a 38% increase from the previous year. However, the company reported a loss of $1.61 per share, which was wider than the expected $0.18 per share loss. LENSAR’s strong revenue performance was driven by increased sales of its ALLY Robotic Cataract Laser Systems and higher procedure volumes. The company placed 31 ALLY systems in the fourth quarter, bringing the total for 2024 to over 80, an 86% increase from 2023.
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