Biotech Values

[DewDiligence]

Alcon Reports Solid 4Q09 Results

[Whatever one may think of how much NVS is paying to acquire Alcon—or the way NVS is going about doing it—one thing is certain: Alcon is a major beneficiary of The Global Demographic Tailwind. As middle classes emerge in the Third World, the demand for ophthalmic drugs and services will soar. Rising Third World affluence will lead to longer lifespans, and almost all people eventually need cataract surgery if they live long enough.]

http://www.reuters.com/article/idAFN1124931020100212

›NEW YORK, Feb 11 (Reuters) - Eye care products maker Alcon Inc <ACL>, which is being acquired by Swiss drugmaker Novartis AG <NVS>, reported an 8 percent rise infourth-quarter profit on Thursday, helped by double-digit sales increases in the U.S. and emerging markets.

Alcon posted a net profit of $458 million, or $1.51 per share, compared with $424 million, or $1.41 per share, a year ago. Excluding items, such as a $30 million tax expense, Alcon earned $1.61 per share. Analysts on average expected $1.51 cents per share, according to Thomson Reuters I/B/E/S.

Revenue for the quarter rose 14.5 percent to $1.72 billion, exceeding Wall Street estimates of $1.6 billion.

U.S. sales rose 10 percent as prescription demand strengthened and cataract procedure volumes improved, Alcon said. International organic sales, driven by emerging markets, grew more than 7 percent.

Alcon said quarterly worldwide sales of glaucoma products rose 31 percent, while sales of advanced technology intraocular lenses rose more than 42 percent.

For 2010, Alcon said it expects organic sales growth to return to the mid-to-high single digits with full year earnings of $7.30 to $7.55 per share.

Analysts have forecast 2010 earnings per share of $7.43 on revenue of $6.89 billion.

The planned Novartis acquisition has been highly contentious as the drugmaker has offered minority shareholders substantially less to tender their Alcon shares that it will pay Swiss conglomerate Nestle SA for its majority stake in Alcon.‹