BTIG maintains Alcon $99 target, upbeat on TRYPTYR launch

Published 29/05/2025, 10:40
BTIG maintains Alcon $99 target, upbeat on TRYPTYR launch

Thursday, May 29, 2025

On Thursday, BTIG analysts reiterated their Buy rating and $99.00 price target for Alcon Inc. (NYSE: NYSE:ALC) shares following the FDA approval of TRYPTYR for dry eye disease (DED). The company, with a market capitalization of $42 billion, is a prominent player in the Healthcare Equipment & Supplies industry according to InvestingPro data. The new eye drop, previously known as AR-15512, is set to be commercially launched in the U.S. in the third quarter of 2025, with plans to expand to additional markets thereafter.

TRYPTYR is an ophthalmic solution that works by stimulating corneal sensory nerves to increase the production of natural tears. This approval marks a significant step for Alcon, which had a relatively small footprint in the DED pharmaceutical market before acquiring EYSUVIS assets from Kala Pharmaceuticals (NASDAQ:KALA) in May 2022. TRYPTYR represents Alcon’s most substantial opportunity in the DED space.

Management at Alcon has projected peak sales for TRYPTYR to be in the range of approximately $250 million to $400 million. The range is dependent on the specifics of the FDA’s labeling, which includes both signs and symptoms of DED. With current annual revenue of nearly $10 billion and a strong liquidity position (current ratio of 2.7), the company appears well-positioned to support this product launch. InvestingPro analysis reveals 10+ additional key insights about Alcon’s financial health and growth potential. Although the sales force will be able to start selling TRYPTYR immediately upon approval, there is an expectation that it will take time to secure reimbursement agreements.

To support the launch of TRYPTYR, Alcon is planning to increase its sales force dedicated to eye drop products. However, the company anticipates that the revenue contribution from TRYPTYR will be modest at first, with a more significant impact expected in the fiscal year 2027 when the company will benefit from a full year of sales. Analysts maintain a bullish outlook on Alcon, with price targets reaching as high as $120, suggesting significant upside potential. For comprehensive analysis and detailed valuation metrics, investors can access Alcon’s full Pro Research Report on InvestingPro.

In other recent news, Alcon has received FDA approval for TRYPTYR, an innovative treatment for Dry Eye Disease. This marks Alcon’s first FDA-approved prescription pharmaceutical treatment since becoming an independent company. The approval is based on promising results from Phase 3 clinical trials, showing significant improvements in natural tear production. Additionally, BTIG analysts have maintained their Buy rating for Alcon, setting a price target of $99, while highlighting the company’s new diagnostic system, Unity DX, which aims to enhance clinical workflows. Stifel analysts also maintained a Buy rating with a $100 price target, focusing on Alcon’s upcoming AR-15512 eyedrop treatment for dry eye disease.

However, Deutsche Bank (ETR:DBKGn) downgraded Alcon from Buy to Hold, reducing the price target to CHF 80, citing concerns over a slowdown in end markets. Despite this, they remain optimistic about Alcon’s future product launches. Bernstein analysts adjusted their price target to $109, maintaining an Outperform rating, and noted potential financial pressures in the second quarter due to increased R&D and SG&A expenses. They expect a stronger performance in the latter half of the year, driven by new product launches. These developments reflect both challenges and opportunities for Alcon in the evolving market landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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