Johnson & Johnson has made a significant breakthrough for contact lens wearers suffering from allergic eye itch. The company recently secured FDA approval for a drug-eluting contact lens, revolutionizing the market. Now, medtech analysts at Needham & Co. have released a report highlighting the potential growth in both the contact lens and intraocular lens markets.
According to the report, both markets are attractive due to their exposure to growth 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. They note that there is an increasing trend towards daily contact lenses, which are priced significantly higher than monthly or two-week replacement lenses. Additionally, there is a shift from hydrogel to silicone hydrogel lenses, which come at a premium price.
The report also emphasizes the importance of improving the conversion rate from trialing to permanent wearer, as well as increasing the retention rate among older wearers. The analysts suggest that advancements in multifocal contact lenses could contribute to greater stability in the wearer base.
In the intraocular lens market, the analysts expect premium lenses used in cataract surgeries to drive growth. They note that toric and advanced technology intraocular lenses can be significantly more expensive than monofocal lenses. The report highlights a sustained mix shift towards these premium lenses as a significant tailwind for the market.
Google Trends analytics also indicate potential growth in the intraocular lens market. According to Needham’s tracking of procedure volumes, cataract procedures are trending better than orthopedic and cardiovascular procedures.
The analysts estimate that the intraocular lens market is currently valued at around $3 billion. They also mention specific companies in their report, such as Alcon and RxSight, which have innovative products in this market.
Alcon’s AcrySof IQ PanOptix Trifocal Intraocular Lens has already surpassed one million implants worldwide. This multifocal lens allows for better near and intermediate vision compared to monofocal lenses. Alcon has also launched the Clareon family of IOLs in the United States, which promises consistent visual outcomes and exceptional clarity.
RxSight has a differentiated intraocular lens system that 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 a unique advantage over other IOLs.
Overall, the Needham analysts are optimistic about the growth potential in both the contact lens and intraocular lens markets. The shift towards premium products and advancements in technology are expected to drive market expansion in the coming years.