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How Novartis’s Alcon Performed in 4Q17 and Fiscal 2017

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Alcon revenue trends

In 4Q17, Novartis’s (NVS) subsidiary Alcon generated revenues of $1.56 billion compared to $1.44 billion in 4Q16, which reflected ~8% growth on a year-over-year (or YoY) basis and ~2% growth quarter-over-quarter. In fiscal 2017, Novartis’s subsidiary Alcon reported revenues of $6.0 billion compared to $5.8 billion in 2016, which reflected ~4% YoY growth.

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Surgical products revenue trends

Alcon’s surgical products include cataract products, vitreoretinal products, and refractive/other products. In 4Q17, Alcon’s surgical products reported net revenues of $982 million compared to $887 million in 4Q16, which reflected ~11% YoY growth. In 2017, Alcon’s surgical products reported revenues of $3.66 billion compared to $3.52 billion in 2016, which reflected ~4% growth on a YoY basis.

In 4Q17, Alcon’s cataract products reported net revenues of $743 million, which included revenues of $389 million from sales of consumables, $272 million from sales of IOLs (intraocular lenses), and $82 million from equipment. In 4Q17, Alcon’s cataract products witnessed 9% YoY growth. In 2017, Alcon’s cataract consumables, IOLs, and equipment sales witnessed ~10% growth, ~14% growth, and a ~5% decline, respectively.

In fiscal 2017, Alcon’s cataract products saw net revenues of $2.7 billion, which included revenues of $1.4 billion from sales of consumables, $995 million from sales of IOLs, and $311 million from equipment. In 2017, Alcon’s cataract products witnessed 2% YoY growth. In 2017, Alcon’s cataract consumables, IOLs, and equipment sales witnessed a ~4% increase, ~1% increase, and a ~3% decline, respectively.

In 4Q17, Alcon’s vitreoretinal products generated revenues of $179 million compared to $161 million in 4Q16, which reflected ~11% YoY growth. In fiscal 2017, Alcon’s vitreoretinal products generated revenues of $686 million compared to $616 million in 2016, which reflected ~11% YoY growth.

Cooper Companies (COO), Alcon’s peer in eye care products,  reported revenues of $398.5 million in 1Q18, while Valeant Pharmaceuticals (VRX) reported revenues of $2.2 billion in 4Q17.

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Vision care revenue trends

Alcon’s vision care includes contact lenses and contact lens care products. In 4Q17, Alcon’s vision care reported revenues of $582 million compared to $557 million in 4Q16, which reflected ~4% YoY growth. In 2017, Alcon’s net vision care reported revenues of $2.4 billion compared to $2.3 billion in 2016, which is ~3% YoY growth.

In 4Q17, Alcon’s contact lenses and contact lens care reported revenues of $443 million and $139 million, respectively, compared to $420 million and $137 million in 4Q16, which reflected ~5% and 1% growth on a YoY basis, respectively.

In 2017, Alcon’s contact lenses and contact lens care reported revenues of $1.83 billion and $531 million, respectively, compared to $1.76 billion and $532 million in 2016. In 4Q17, Johnson & Johnson (JNJ), Novartis’s peer in the vision care products market, generated revenues of $1.1 billion from sales of its vision care products.

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