Alcon, Inc.Acquires LenSx, Still In Negotiations With Novartis (ACL, NVS)
Alcon Inc. (NYSE: ACL) has signed an agreement to acquire LenSx Laser for $744 million. Alcon is a specialty company focused primarily on eye care; the company produces pharmaceuticals, surgical equipment, and consumer eye care products.
Jefferies analysts Joshua Jennings and Anthony Petrone believe this acquisition makes strategic sense. 82% of Alcon's surgical revenues came from the surgical cataract market, so this acquisition is no surprise.
Given the recent U.S. approval of femtosecond lasers, LenSx is well positioned tap into this market.
Alcon is currently in merger negotiations with Novartis (NYSE: NVS)(ADR). Jefferies does not Novartis to block this acquisition, as it allows Novartis to establish a presence in the surgical ophthalmic market.
Alcon is currently rated Buy with a price target of $170.00. Shares of ACL are currently trading at $149.92.
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