Johnson & Johnson Secures FDA Approval for Innovative Contact Lens
In a groundbreaking development for contact lens wearers with allergic eye itch, Johnson & Johnson has recently obtained FDA approval for a drug-eluting contact lens. This exciting news has sparked interest among medtech analysts at Needham & Co., who have released a report highlighting the potential growth of both the contact lens and intraocular lens markets.
According to Needham analysts David Saxon, Mike Matson, and Joseph Conway, both markets offer attractive opportunities due to their exposure to growth drivers that are somewhat insulated from pure volume growth. They believe that a shift towards premium products could increase the growth rate of each market above its historical mid-single digit rate.
The report also covers the firm’s coverage initiation of Alcon, Cooper Companies, RxSight, and STAAR Surgical. These companies are expected to play a significant role in the evolving landscape of the medtech industry.
Regarding the contact lens market, the Needham analysts note a shift towards premium lenses as a durable growth driver. This shift includes a move from monthly and two-week replacement lenses to daily lenses, which can be significantly more expensive. Additionally, there is 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 realm of intraocular lenses, which are implanted during cataract procedures, the analysts predict sustained growth driven by a mix shift towards toric and advanced technology lenses. These lenses can be several times more expensive than traditional monofocal lenses.
The report also mentions Google Trends analytics, which indicate that cataract procedure volumes are trending better than orthopedic and cardiovascular procedures. This data suggests further growth potential for the intraocular lens market.
The analysts estimate that the current value of the intraocular lens market is approximately $3 billion.
In a separate report, the Needham analysts highlight the differentiated intraocular lens system developed by RxSight. This system includes a light adjustable lens (LAL) and a light delivery device (LDD), allowing for tailored visual correction after the procedure. The analysts suggest that RxSight’s LALs could be 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 lens provides clear vision at various distances and offers improved near and intermediate vision compared to monofocal lenses.
Additionally, Alcon recently launched the Clareon family of IOLs in the United States. These IOLs utilize advanced materials to deliver consistent visual outcomes and exceptional clarity, setting a new standard in intraocular lens innovation.
Overall, the medtech industry is witnessing exciting advancements in contact and intraocular lenses, with Johnson & Johnson’s FDA approval paving the way for improved eye care options. The Needham analysts’ report highlights the potential for growth in both markets, driven by a shift towards premium products and advancements in technology.