Alcon Continues To Be Well Positioned in the Eye Care Market

As a global leader in eyecare, Alcon provides products and equipment for various vision conditions such as refractive errors, cataracts, and advanced vitreoretinal problems. The firm is the second-biggest player in contact lenses and has a robust portfolio in liquid eyecare solutions for allergies and dry eye. Despite a strong market position, Alcon remains in turnaround mode following years of underinvestment as a Novartis subsidiary. The company has committed significant capital to the turnaround program with greater sales and marketing spending, and capital expenditures that we expect will total over $1.5 billion over the next three years. Looking past expected lumpiness of near-term results, we think management’s turnaround efforts will largely pay off and we have a positive view of the outlook on the core business.