Johnson & Johnson has made a breakthrough in the world of contact lenses by obtaining FDA approval for a drug-eluting contact lens. This development has brought relief to contact lens wearers suffering from allergic eye itch. Now, 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 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 both markets beyond their historical mid-single digit rate.
The report also covers the firm’s coverage initiation of Alcon, Cooper Companies, RxSight, and STAAR Surgical. It emphasizes a mix shift towards premium lenses as a durable growth driver for the contact lens market, which is currently valued at approximately $9 billion. The analysts note that there is an increasing preference for daily contact lenses over monthly and two-week replacement lenses, despite the higher price. Additionally, there is a shift from hydrogel to silicone hydrogel lenses, which come with a premium of 20-40%.
Furthermore, the analysts point out that improving the conversion rate from trialing to permanent wearer and enhancing multifocal contact lenses could contribute to market growth by increasing stability in the wearer base.
In the realm of intraocular lenses, which are implanted during cataract procedures, the analysts expect premium lenses to drive growth in the market. While monofocal lenses currently dominate the market, toric and advanced technology intraocular lenses have shown significant improvements. These premium lenses can be three to four times and six to eight times more expensive than monofocal lenses, respectively.
The analysts also highlight Google Trends analytics, which suggest that cataract procedure volumes are trending better than orthopedic and cardiovascular procedures. This indicates a potential indicator of growth for the intraocular lens market.
The report estimates the current value of the intraocular lens market at around $3 billion. It also mentions specific companies in the industry, such as RxSight, which offers a differentiated intraocular lens system that allows for tailored visual correction after the procedure. Alcon’s AcrySof IQ PanOptix Trifocal Intraocular Lens, which has surpassed one million implants worldwide, is also mentioned. Alcon recently launched the Clareon family of IOLs in the United States, which uses advanced intraocular lens material 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, driven by a shift towards premium products and advancements in technology.