Glass Lewis advises STAAR Surgical shareholders to reject Alcon sale proposal.

Glass Lewis recommends STAAR Surgical shareholders vote against its sale to Alcon. The proxy adviser suggests the sale undervalues the company and provides no compelling strategic or financial rationale. Broadwood Partners, the largest holder of STAAR Surgical, announced the recommendation.

Glass Lewis, a prominent proxy advisory firm, has recommended that STAAR Surgical shareholders vote against the proposed sale to Alcon Inc. The advisory firm argues that the sale undervalues the company and provides no compelling strategic or financial rationale. This recommendation comes on the heels of Yunqi Capital, one of STAAR's largest shareholders, expressing similar concerns Yunqi Capital, One of STAAR Surgical Company’s Largest Shareholders, Reiterates Its Opposition to the Proposed Merger with Alcon^[1].

Yunqi Capital, which owns approximately 5.1% of STAAR Surgical, has long held reservations about the proposed merger. The investment management firm has met with STAAR's board and management several times to share insights on the Chinese market and the company's growth potential. Yunqi Capital believes that STAAR is significantly underestimating its business strength, particularly in China, and that the proposed merger does not align with the company's long-term interests Yunqi Capital, One of STAAR Surgical Company’s Largest Shareholders, Reiterates Its Opposition to the Proposed Merger with Alcon^[1].

Broadwood Partners, another significant shareholder, has also expressed skepticism about the merger. The firm's presentation, titled "The Wrong Time, Wrong Process and Wrong Price," shares many of Yunqi Capital's concerns. Broadwood Partners argues that STAAR's recent financial performance has been transitory and that the company's market presence in China is a strength, not a liability Yunqi Capital, One of STAAR Surgical Company’s Largest Shareholders, Reiterates Its Opposition to the Proposed Merger with Alcon^[1].

Glass Lewis' recommendation is based on several factors, including the potential undervaluation of STAAR and the lack of a clear strategic or financial rationale for the merger. The advisory firm suggests that shareholders should preserve the value of their investment and vote against the proposed merger.

The proposed sale to Alcon Inc., announced on August 5, 2025, has been met with criticism from various quarters. Yunqi Capital and Broadwood Partners, among others, have questioned the terms of the merger and the company's valuation. The merger, if approved, would see STAAR Surgical's CEO, Stephen Farrell, receive an estimated $55 million in compensation, including approximately $24 million for Farrell himself. This has raised concerns about potential conflicts of interest Yunqi Capital, One of STAAR Surgical Company’s Largest Shareholders, Reiterates Its Opposition to the Proposed Merger with Alcon^[1].

STAAR Surgical's recent financial performance has been inconsistent, with revenue declining in China due to temporary factors such as distributor inventory adjustments. However, the company has also experienced growth in other markets, and its ICL technology has shown strong potential. The proposed merger, if approved, would see STAAR Surgical become a subsidiary of Alcon Inc., a division of Novartis.

Glass Lewis' recommendation is a significant development in the ongoing debate over STAAR Surgical's future. The advisory firm's opinion carries considerable weight among institutional investors, and its recommendation could influence the outcome of the shareholder vote on the proposed merger.