Alcon acquires majority stake in Aurion Biotech

GENEVA - Alcon (SIX/NYSE: ALC), a prominent player in the Healthcare Equipment & Supplies industry with a market capitalization of $45 billion and "GREAT" financial health according to InvestingPro, has announced the acquisition of a majority interest in Aurion Biotech, a company specializing in cell therapy for ocular diseases. With this move, Alcon aims to expedite the development of Aurion’s cell therapy asset, AURN001, into Phase 3 trials in the U.S. during the second half of 2025.

AURN001 has garnered Breakthrough Therapy Designation and Regenerative Medicine Advanced Therapy Designation from the U.S. Food and Drug Administration (FDA) for the treatment of corneal edema due to corneal endothelial disease. This innovative therapy combines allogeneic human corneal endothelial cells with a rho kinase inhibitor and is yet to receive FDA approval.

Under the terms of the acquisition, Aurion will continue to function as an independent entity, leveraging Alcon’s extensive R&D, regulatory, and commercial capabilities. Arnaud Lacoste, PhD, previously Chief Scientific Officer, has been appointed as the new CEO of Aurion.

Alcon’s CEO, David Endicott, expressed optimism about the potential of cell therapies in ophthalmology, citing the global shortage of corneal tissue and the promise of Aurion’s technology to address unmet medical needs in eye care.

Aurion has completed a Phase 1/2 clinical study, the CLARA trial, which involved 97 subjects with corneal endothelial dysfunction across the U.S. and Canada. The positive outcomes from this study support AURN001’s progression to Phase 3 development.

Dr. Lacoste highlighted the significant clinical and regulatory milestones Aurion has achieved since its inception in 2022. He emphasized the company’s capability to produce up to 1,000 doses from a single donor’s cells, addressing the chronic global shortage of corneal tissue.

In September 2024, Aurion launched Vyznova™, its first commercial cell therapy product in Japan, for the treatment of bullous keratopathy, a condition that seriously threatens vision.

This strategic partnership positions Alcon at the forefront of biopharmaceutical applications in ophthalmology and supports the advancement of the first-ever corneal cell therapy candidate. With its stock showing historically low price volatility and maintaining profitability over the last twelve months, Alcon demonstrates stability in pursuing innovation. For deeper insights into Alcon’s financial health and growth potential, investors can access comprehensive analysis through InvestingPro, which offers detailed research reports and over 10 additional ProTips for informed decision-making. The information for this article is based on a press release statement and financial data from InvestingPro.

In other recent news, Alcon Inc. has made a definitive agreement to acquire LENSAR Inc., a company specializing in femtosecond laser-assisted cataract surgery equipment. The acquisition involves an upfront cash payment of $14.00 per share, with the potential total consideration reaching $430 million if certain milestones are met. This move aligns with Alcon’s strategy to enhance its product portfolio and strengthen its position in the ophthalmology market. Additionally, BofA Securities has upgraded Alcon’s stock from Neutral to Buy, raising the price target to CHF96.00, citing optimism over an anticipated earnings upgrade cycle driven by new product launches.

Bernstein analysts have maintained an Outperform rating for Alcon, setting a price target of $110.50, highlighting the synergy between Alcon’s intraocular lenses and LENSAR’s technology. Meanwhile, Stifel analysts have reiterated their Buy rating with a $100.00 price target, expressing confidence in Alcon’s defensive market position but noting some reservations about the company’s guidance for 2025. Needham has also maintained a Buy rating with a $107.00 target, expecting the upcoming Capital Markets Day to provide significant updates on Alcon’s strategic direction and product cycle.

These developments come as Alcon prepares for its Capital Markets Day, anticipated to offer insights into its growth and value drivers. Analysts are closely watching for updates on Alcon’s product pipeline and financial targets, with the event expected to be pivotal in shaping investor perceptions.

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