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 Alcon, Cooper Companies, RxSight, and STAAR Surgical by Needham & Co. analysts. These companies are expected to play a significant role in the growth of the markets.
In terms of the contact lens market, the analysts note a shift towards premium lenses, which is expected to drive growth. 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 come with a premium price. Additionally, improving the conversion rate from trialing to permanent wearer and enhancing multifocal contact lenses could contribute to market stability and growth.
Staar Surgical has recently received FDA approval for its EVO/EVO+ Visian Implantable Collamer Lens, which corrects myopia and myopia with astigmatism. This lens can be implanted in individuals with more severe refractive errors compared to traditional laser procedures.
In the intraocular lens (IOL) market, which involves lenses implanted during cataract procedures, the analysts expect premium lenses to drive growth. While monofocal lenses currently dominate the market, toric and advanced technology IOLs have shown improvement in recent years. These premium lenses are priced significantly higher than monofocal IOLs.
The analysts also highlight Google Trends data, which suggests that cataract procedure volumes are trending better than orthopedic and cardiovascular procedures. This indicates potential growth for the intraocular lens market.
The report estimates the current value of the intraocular lens market to be around $3 billion.
In a separate report, the analysts mention RxSight’s differentiated intraocular lens system, which includes a light adjustable lens (LAL) and a light delivery device (LDD). The LAL can be adjusted after the procedure to provide tailored visual correction, offering an advantage over other IOLs that require pre-operation decisions.
Alcon has also made significant advancements in the intraocular lens market. Its AcrySof IQ PanOptix Trifocal Intraocular Lens has surpassed one million implants worldwide. This multifocal lens provides clear vision for near and intermediate distances, enhancing the reading and computer work experience for patients. Alcon has also launched the Clareon family of IOLs in the United States, which uses advanced lens material to deliver consistent visual outcomes and exceptional clarity.
Overall, the Needham & Co. analysts foresee a promising future for both the contact lens and intraocular lens markets, driven by a mix shift towards premium products and advancements in technology.