Johnson & Johnson has made a breakthrough in the world of contact lenses by obtaining FDA approval for a drug-eluting contact lens. This development is great news for contact lens wearers who suffer from allergic eye itch. Now, medtech analysts at Needham & Co. have released a report that examines the contact lens market and the intraocular lens market, highlighting their potential for growth.
According to the report, both markets have attractive growth prospects due to their exposure to drivers that are somewhat insulated from pure volume growth. The analysts believe that a shift towards premium products could increase the growth rate of both markets beyond their historical mid-single digit rate.
The report also covers the initiation of coverage for several companies, including Alcon, Cooper Companies, RxSight, and STAAR Surgical.
In terms of the contact lens market, the analysts note a shift towards premium lenses, which is expected to drive growth in the approximately $9 billion market. This shift includes a move from monthly and two-week replacement lenses to daily lenses, which are priced significantly higher. There is also a transition from hydrogel to silicone hydrogel lenses, which command a premium price.
The analysts also highlight the potential for increased market growth through improving the conversion rate from trialing to permanent wearer and enhancing multifocal contact lenses for older wearers.
In the intraocular lens (IOL) market, the analysts anticipate growth driven by premium lenses used in cataract surgeries. While monofocal lenses currently dominate the market, toric and advanced technology IOLs have shown improvement in recent years. These premium lenses can be significantly more expensive than monofocal IOLs.
The report suggests that sustained mix shift towards premium lenses will be a significant boost for the IOL market. Additionally, Google Trends analytics indicate that cataract procedure volumes are trending better than orthopedic and cardiovascular procedures, further indicating potential growth in the IOL market.
The analysts estimate the current value of the intraocular lens market to be around $3 billion.
In a separate report, the analysts highlight RxSight’s differentiated intraocular lens system, which consists of a light adjustable lens (LAL) and a light delivery device (LDD). Unlike other IOLs, RxSight’s LAL can be adjusted after the procedure to provide tailored visual correction. This flexibility could make RxSight’s LALs suitable for up to 20% of patients.
Alcon, on the other hand, has achieved a significant milestone with its AcrySof IQ PanOptix Trifocal Intraocular Lens, surpassing one million implants worldwide. This multifocal IOL offers improved near and intermediate vision compared to monofocal lenses.
Alcon has also launched the Clareon family of IOLs in the United States. These IOLs use advanced materials to deliver consistent visual outcomes and exceptional clarity.
Overall, the report from Needham & Co. highlights the potential for growth in both the contact lens and intraocular lens markets. The shift towards premium products and advancements in technology are expected to drive this growth, offering new options and improved vision for patients.