Novartis’s 2Q17 Estimates: Alcon, the Eye Care Business
Alcon, the eye care business
Alcon, Novartis’s (NVS) eye care segment, researches, develops, manufactures, and markets eye care products in more than 180 countries worldwide. The business is now divided into two subsegments: surgical and vision care. The ophthalmic pharmaceuticals business was transferred to the Innovative Medicines segment on April 1, 2016.
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Analysts expect Alcon’s 2Q17 revenues to increase operationally following strong sales of products from the vision care franchise and partially offset by lower sales of products in surgical sales. Ophthalmic pharmaceutical products, including Patanol, were transferred from Alcon to the Innovative Medicines segment in 2Q16.
Global sales of surgical products are expected to decline in 2Q17 following lower equipment sales for LenSx technology in Asia and the United States in recent quarters. It could be partially offset by an increase in sales of cataract consumables.
Global sales of vision care are expected to increase in 2Q17 due to the strong performance of daily contact lenses as well as Dailies Total1. However, consumers’ continued market shift to daily disposable lenses is affecting sales of contact lens care products. Other products in the vision care profile include AirOptix Colors, Dailies AquaComfort Plus Toric, and DACP (Dailies AquaComfort Plus) multifocal, which are expected to report growth in 2Q17.
Overall, 2Q17 revenues for Alcon are estimated to fall as growth in revenues for vision care products are offset by lower surgical sales and lower sales of some vision care products.
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