Johnson & Johnson has made a significant breakthrough in the world of contact lenses. The company recently obtained FDA approval for a drug-eluting contact lens, providing relief for contact lens wearers suffering from allergic eye itch. This development has caught the attention of medtech analysts at Needham & Co., who have released a report highlighting the potential growth in both the contact lens and intraocular lens markets.
According to Needham analysts David Saxon, Mike Matson, and Joseph Conway, both markets show promise 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 beyond its historical mid-single digit rate.
The report also covers the firm’s coverage initiation of Alcon, Cooper Companies, RxSight, and STAAR Surgical. It emphasizes the increasing shift towards premium lenses in the contact lens market, which is expected to drive growth. The analysts note that there is a growing 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 at a premium.
Furthermore, the report highlights the potential for growth in the intraocular lens market. Intraocular lenses are implanted during cataract procedures to replace the patient’s natural lens. The majority of intraocular lens volume is monofocal, but toric and advanced technology intraocular lenses have improved in recent years. These premium lenses can be significantly more expensive than monofocal lenses, presenting an opportunity for market growth.
The analysts also mention Staar Surgical’s FDA approval for its EVO/EVO+ Visian Implantable Collamer Lens, which can correct myopia and myopia with astigmatism. Unlike other refractive error correction procedures that rely on laser technology, Staar’s implantable collamer lens can be implanted in people with more severe refractive errors.
The report concludes by discussing the potential growth indicators for the intraocular lens market, including sustained mix shift and positive trends in cataract procedure volumes. 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 allows for post-procedure adjustments to provide tailored visual correction. This sets it apart from other intraocular lenses that require pre-operation decisions based on the patient’s visual preferences.
Alcon is also making strides in the intraocular lens market with its AcrySof IQ PanOptix Trifocal Intraocular Lens, which has surpassed one million implants worldwide. This multifocal lens offers improved near and intermediate vision compared to monofocal lenses. Additionally, Alcon has launched the Clareon family of IOLs in the United States, which uses advanced intraocular lens material for 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.