Exclusive: Broadwood says Alcon’s earnings reveal STAAR bid came from ‘weakness’

Investing.com -- Alcon AG’s (NYSE:ALC) latest earnings are drawing fire from new acquisition STAAR Surgical ’s (NASDAQ:STAA) largest shareholder, Broadwood Partners, which said the results underscore why the Swiss eye-care company “needs STAAR far more than STAAR needs Alcon.”

The remarks came after Alcon posted modest third-quarter growth and reaffirmed its full-year outlook, sending shares up 4% in Wednesday trade. But Broadwood founder Neal C. Bradsher told Investing.com that Alcon’s continued weakness in its implantables division highlights the company’s dependence on the proposed STAAR deal.

“Alcon’s results today, including the continuing weakness of its implantables business, demonstrate why Alcon needs STAAR far more than STAAR needs Alcon, and why Alcon has been pursuing STAAR so aggressively for more than 19 months,” Bradsher said to Investing.com in an emailed. “Alcon’s recent public pessimism about STAAR is simply a transparent strategy to deter other bidders and enable Alcon to buy STAAR on the cheap.”

Implantables net sales rose just 2% in the third quarter to $432 million, reflecting the launch of PanOptix Pro but also “continued competitive pressures,” according to the company. For the first nine months of 2025, implantables revenue totaled $1.3 billion, down 1% from a year earlier, or flat on a constant-currency basis, highlighting the sluggish backdrop Bradsher cited.

Broadwood Partners, holder of over 27% of STAAR’s stock, has been waging a months-long campaign against the proposed sale to Alcon, arguing the deal undervalues the company and reflects a flawed sale process.

Alcon defends STAAR deal as ‘attractive but not essential’

On the company’s earnings call, CEO David Endicott defended the proposed $28-per-share acquisition, saying STAAR’s implantable collamer lens (ICL) technology is “complementary to our refractive laser business.”

“We continue to view the transaction as attractive and believe Alcon is best suited to maximize the value of their implantable collamer lens,” Endicott told analysts. “We like this deal, but it isn’t essential to our long-term growth plan.”

When asked about alternatives if the deal falls apart, Endicott said, “We’ll figure that out when we get there. We hope this gets done, but if it doesn’t, we’ve got a great plan.”

The comments mark continued escalation in an increasingly personal set of jabs between Alcon and Broadwood. Earlier this month, the two sides traded public attacks after Alcon released an investor presentation accusing Broadwood of attempting a “silent takeover” of STAAR and warning that the activist’s plan to oust three directors “risks disenfranchising the broader stockholder base.”

Broadwood swiftly fired back, calling Alcon’s presentation “replete with fallacious arguments and baseless claims,” and argued that STAAR’s board had misled shareholders about the deal’s process and prospects.

Alcon’s materials also took aim at Broadwood and fellow dissenter Yunqi Capital, questioning their investment track records. Bradsher countered that Alcon’s criticism was “selective and misleading,” quipping that if Alcon’s own returns since its 2019 spinoff from Novartis matched Broadwood’s, “its stock would be trading at more than $150 per share, instead of $75.”

As Investing.com previously reported, roughly 72% of STAAR’s outstanding shares had already voted against the merger ahead of the originally scheduled October 23 meeting, with just 18% voting in favor. STAAR later postponed the vote to December 19 to allow time for a revised “go-shop” process, though Alcon has refused to raise its offer price so far.

All three major proxy advisory firms, ISS, Glass Lewis, and Egan-Jones, have recommended that shareholders vote against the deal.

Earnings steady after early-year setbacks

Alcon reported third-quarter net sales of $2.59 billion, up 6% from a year earlier, or 5% in constant currency, an improvement from 3% growth in the prior quarter. Core diluted EPS came in at $0.79 with a 20.2% core operating margin, slightly below last year’s 20.6%. Net profit slipped to $237 million from $263 million, weighed down by higher taxes.

The company maintained its full-year guidance after two downward revisions earlier this year, offering relief to investors.

By division, Surgical net sales rose 6% to $1.4 billion, driven by implantables, consumables, and equipment, while Vision Care revenue increased 7% to $1.2 billion, supported by stronger demand for contact lenses and ocular health products. Both segments grew 5% in constant currency.

Endicott pointed to “encouraging topline growth” from new products such as the Unity VCS surgical system and PanOptix Pro lens, saying early uptake “lays the groundwork for a solid 2026.”

What’s next

STAAR shareholders are set to vote on the proposed Alcon merger on December 19, following a go-shop period that allows the company to solicit rival bids. While Alcon has held firm on its $28-per-share offer, Broadwood has urged the board to reject the deal outright and pursue alternatives once the vote concludes.