Alcon has a demographic edge

Article Excerpt

Swiss pharmaceutical giant Novartis spun off its eye-care business as Alcon in April 2019. Novartis shareholders received 1 Alcon share for every 5 Novartis shares they held. As a separately traded stock, Alcon is now up 23%. It should continue to move higher as aging baby boomers need more of the company’s contact lenses and cataract surgery products. As well, Alcon’s global operations and high market share enhance its appeal as a takeover target. ALCON INC. $64 is a buy. The firm (New York symbol ALC; Consumer Sector; Shares outstanding: 491.6 million; Market cap: $31.5 billion; Dividend yield: 0.3%; Takeover Target Rating: Medium; www.alcon.com) is the world’s biggest eye-care company. Specifically, it’s the leader in ocular surgical supplies and No. 2 in contact lenses. While Alcon is based in Switzerland, it’s headed by an American, reports results in U.S. dollars, and gets 44% of its sales in that market. It also generates 25% of its revenues from emerging markets, one of the highest percentages among competitors in…

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