Alcon Inc. (NYSE:ALC) Q2 2023 Earnings Call Transcript

Page 7 of 10

David Endicott: Yeah, thanks. We’ll get more into PRECISION7 probably next year. We’re certainly not going to launch it this year. We’re trying to give room for the success that we’re having with the existing products. So, of course, we got a sales, sales force is all over the world right now promoting a lot of products. And so there is a bit of a capacity and timing question around this one, by capacity I only mean sales force capacity, we can make plenty of this. So, but I do think the basic proposition is really interesting, which is a lot of optometrists tell us that a one-week regimen is a more intuitive regimen than a one-month regimen because people forget, they overwear, they do a number of things but getting a clean lens once a week on a Monday just makes a whole lot of difference I think in the way people wear this lens.

And also the comfort of a reusable lens. So it is a combination of price point, which is a little bit better than your DAILIES product and a little bit more expensive than a monthly, but way more intuitive and way better for you and a more comfortable feel. So I think the proposition of PRECISION7 will be nicely positioned I think between DAILIES lenses and monthly lenses. And we know that really still 50% or more almost 60% of the patients are still in reusable wear. So they’re in a monthly or two-week lens and so we’re trying to access that volume by bringing PRECISION7 to the market. So we’re very excited about the product, we’re continuing to collect data on it to make sure that we have a data package that will be compelling. But I think about this as a kind of next year idea, maybe late next year.

We haven’t really settled in yet on what our timing looks like.

Operator: Our next question is from Jeff Johnson with Baird. Please proceed.

Jeff Johnson: Thank you. Good morning, guys. David, I wanted to go back to maybe the first question of Q&A. Just on the IOL comments you made on the US market. I think Veronika asked about PCIOLs, you kind of answered on Toric IOLs, we didn’t address monofocal IOLs. So maybe across those three categories. Can I just make sure I’m understanding what you’re saying on kind of the new market entrants and kind of where you’re seeing stability or not in your share across PCIOLs, Toric IOLs and the monofocal side of the business? Thanks.

David Endicott: Yeah, so I think in the US, monofocal share was up for us. I think ATIOL share was off a little bit but PCIOL share was pretty stable. So most of the action was in Toric. And again there’s a couple of new entrants, three actually, I think if you think about year-on-year in that space and people are going to try those lenses, one of them has got a very low price point, one of them is making claims that I think will bear out to be a little more complicated than said. And then another one is kind of a — I think a niche product for complicated patients. And so, I think that will bear out over time, but you got to live with these things as we try and go into markets all the time. We knew there’d be some pressure here, but directionally, we’re holding up really well.

Jeff Johnson: Yeah, now that’s very clear and very helpful. Thank you. And then just on China, it seems like there is maybe a little clarity starting to emerge on VBP for next year. I know you get that question a ton and you’re probably tired of that question, but just kind of how should we be thinking about the early year versus maybe the volume recovery in back half of next year, just any kind of early phasing or thoughts we should be thinking about the China VBP next year on your implantables business? Thanks.

Page 7 of 10