Glass Lewis recommends shareholders vote against STAAR-Alcon deal

NEW YORK - Leading proxy advisory firm Glass Lewis has recommended that STAAR Surgical Company (NASDAQ:STAA) shareholders vote against the proposed acquisition by Alcon Inc. (NYSE:ALC), according to a statement released by Broadwood Partners. Alcon, currently trading near its 52-week low with a market capitalization of $37.8 billion, has maintained profitability with revenue of $10 billion in the last twelve months. According to InvestingPro analysis, the company shows good overall financial health.

In its report, Glass Lewis highlighted concerns regarding the sale process, timing, and price of the transaction announced on August 5, 2025. The advisory firm stated that "investors would be better served scuppering the current arrangement" in favor of either a reset of the process or pursuing the company’s standalone potential.

Glass Lewis noted that STAAR CEO Steve Farrell and Chair Dr. Elizabeth Yeu did not disclose information about inbound acquisition interest to the rest of the board. This information was also not included in STAAR’s proxy statement to shareholders. InvestingPro data shows Alcon trades at a P/E ratio of 35.4x and maintains a healthy current ratio of 2.6, suggesting strong liquidity position.

The proxy advisor criticized the deal’s timing, pointing out that it was announced just one day before STAAR’s second-quarter results, which showed improved performance. Glass Lewis questioned the process, describing it as lacking thoroughness with "substantial and credible questions regarding timing, cadence and transparency."

Regarding valuation, the advisory firm observed that the deal implies a next-twelve-months revenue multiple of approximately 4.56x, which falls below both the median and mean multiples of comparable healthcare equipment transactions.

Broadwood Partners, which opposes the transaction, stated that shareholders representing over 34% of STAAR’s outstanding shares have publicly announced their opposition to the deal. This group includes Yunqi Capital, Defender Capital, CalSTRS, and former STAAR CEO David Bailey.

STAAR has scheduled a special meeting of shareholders for October 23, 2025, to vote on the proposed acquisition. For investors seeking deeper insights into this potential merger, InvestingPro offers comprehensive analysis through its Pro Research Report, available for both companies among 1,400+ top stocks, providing detailed valuation metrics and expert analysis for informed decision-making.

In other recent news, STAAR Surgical Company is facing significant opposition regarding its proposed acquisition by Alcon Inc. Broadwood Partners, holding a 27.5% stake in STAAR, is actively urging shareholders to reject the $28 per share offer. They criticized STAAR’s management for reducing financial projections shortly before the board voted on the sale and highlighted a previous $58 per share proposal from Alcon that was rejected last year. Similarly, Yunqi Capital, which owns 5.1% of STAAR, has also expressed opposition, arguing that the offer undervalues STAAR’s potential, especially in the Chinese market. Broadwood further elaborated on their stance in an 81-page presentation, stating the deal is ill-timed and poorly priced.

In related developments, Stifel has adjusted its price target for Alcon to $85 from $90, though it continues to maintain a Buy rating. The firm noted that the potential for sales growth in the latter half of 2025 remains uncertain. These developments highlight ongoing discussions and differing perspectives regarding the valuation and strategic direction of STAAR Surgical and Alcon.

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