Staar Surgical Shares Rebound 2.80% After Failed Alcon Merger, Activist Opposition

The share price rose to its highest level so far this month today, with an intraday gain of 2.80%.

Staar Surgical’s stock has rebounded following the collapse of its $1.6 billion merger with Alcon, a deal rejected by shareholders at a special meeting on January 6. Activist investor Broadwood Partners, Staar’s largest shareholder, led opposition to the $30.75-per-share offer, arguing it undervalued the company. The failed deal triggered a 12% plunge in early trading but has since been offset by renewed investor interest in Staar’s standalone potential. Management now faces pressure to demonstrate growth through its EVO Implantable Collamer Lens (ICL) technology, which dominates the phakic intraocular lens market. The company’s strong liquidity—highlighted by a 5.21 current ratio—supports its ability to operate independently, though analysts warn of revenue declines and competitive risks in the ophthalmic sector.

The stock’s recent performance reflects a mix of optimism and caution. While Staar’s balance sheet provides flexibility, a 32.42% year-over-year revenue drop underscores the urgency for strategic adjustments. Management has pledged to focus on “profitable sales growth” and optimizing distribution networks across 75 countries. However, analysts project continued sales headwinds, with some estimating a valuation floor of $15–$18 based on next twelve months’ sales. The coming months will test Staar’s ability to balance innovation in ICLs with cost control, as it navigates regulatory challenges and pricing pressures. Shareholder dynamics, including Broadwood’s influence, remain a key variable in shaping the company’s post-merger strategy and investor sentiment.