STAAR Surgical Announces Record US Quarter With Sequential Growth of 20% - Number of Implantable Contact Lenses Sold is to Double by 2026!

STAAR Surgical (STAA) specializes in implantable contact lenses (ICLs), which offer alternatives to traditional contact lenses or other visual aids such as glasses. These can be implanted in just 20 to 30 minutes with minimally invasive procedures and offer UV protection and a lower risk of drying out or inflammation of the eyes thanks to the proprietary collamer material. They are used to treat myopia (short-sightedness), presbyopia (presbyopia), hyperopia (long-sightedness) and astigmatism. Worldwide, 2.6 billion people already suffer from myopia, with the proportion expected to increase to 3.4 billion by 2030 and 4.9 billion by 2050.

China is by far the largest market. Here, the EVO ICL flagship has increased its market share from 9% to 23% since 2018. The pre-market results for the first quarter again show growth of 10% there. In the US, FDA approval for EVO ICL was not received until March 2022, with momentum building as hoped with a record quarter and sequential growth of 20% to $5 million. The US Highway 93 initiative is having an impact and is intended to improve access for patients through partnerships. As a result, a strategic agreement was signed with SharpeVision at the end of January to initially supply 1,000 ICL lenses per year. Market penetration in the domestic market is only 2%.

Overall, revenues in the first quarter are expected to be better than expected at $77 million (consensus: $72 million). On an annualized basis, the upper end of the sales forecast of $335-340 million should be reached, which corresponds to growth of around 6%. With the expectation of an acceleration in the second half of the year, average growth rates of 15-20% are expected until 2026. Net profit is expected to improve significantly from $0.56 this year to $1.75 per share by 2027. The analysts at William Blair are now more confident about the current year and have upgraded the rating from Market Perform to Outperform.

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