JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Friday, Alcon Inc. (NYSE:ALC:SW) (NYSE: ALC), a prominent player in the Healthcare Equipment & Supplies industry with a market capitalization of $42.6 billion, received a reaffirmation of a Buy rating and a price target of CHF99.00 from Citi, following the FDA’s approval of the company’s dry eye treatment, TRYPTYR. The treatment, known as AR-15512, was approved for addressing the signs and symptoms of dry eye, a condition affecting millions worldwide. According to InvestingPro data, Alcon maintains a strong financial health score and operates with a moderate level of debt.
The approval, announced after market close on May 28, came just ahead of the Prescription Drug User Fee Act (PDUFA) date of May 30. The FDA’s decision to include both signs and symptoms on the TRYPTYR label is viewed by Citi as a positive development that could potentially push the drug’s commercial success toward the higher end of their estimated US$250-500 million in potential sales. The company currently generates annual revenue of $9.9 billion with a healthy gross profit margin of 55.6%.
Citi’s current projections are based on an anticipated peak sales figure of US$250 million for TRYPTYR. The analysts at Citi estimate that for every additional US$100 million in sales, there could be an approximate 2-3% increase to their 2029E earnings per share (EPS) for Alcon. This approval could therefore have a significant impact on Alcon’s future earnings.
The analyst noted that the market consensus, as reflected by VisibleAlpha, is likely already accounting for a sales forecast that is at the midpoint of the estimated range. This suggests that the market has moderate expectations for TRYPTYR’s sales performance.
Alcon, a global leader in eye care, is poised to enhance its product portfolio with this latest FDA approval. The company’s stock performance in the coming days may reflect the market’s response to this development and the potential for increased revenue from TRYPTYR sales.
In other recent news, Alcon has received FDA approval for TRYPTYR, an eyedrop treatment for Dry Eye Disease (DED). This marks Alcon’s first FDA-approved prescription pharmaceutical treatment since becoming an independent company. TRYPTYR, which will be launched in the U.S. in the third quarter of 2025, is expected to significantly impact Alcon’s presence in the DED market. Analysts at BTIG have reiterated a Buy rating for Alcon, maintaining a $99 price target, while Stifel analysts also upheld a Buy rating with a $100 price target, focusing on TRYPTYR’s unique mechanism and rapid onset. However, Deutsche Bank (ETR:DBKGn) downgraded Alcon’s stock from Buy to Hold, adjusting the price target to CHF 80.00 due to concerns about a slowdown in end markets. Alcon is planning to expand its sales force to support TRYPTYR’s launch, although initial revenue contributions are expected to be modest. Additionally, Alcon is advancing its diagnostic capabilities with the Unity DX system, aiming to improve clinical workflows. Despite some challenges, analysts continue to express optimism about Alcon’s future product launches and market leadership.
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