Novartis CEO Mr Joe Jimenez said in late January that all options were being explored for Alcon and that a final decision may be announced before the end of FY17.The company has also announced it will buyback US$5 billion (AU$6.5 b) in shares. Alcon has been a victim of low revenues from cataract and refractive equipment, as well as an increased number of competitors in the intraocular lens segment.Last year Novartis increased investment in research and development, as well as marketing and advertising, in an attpt to increase sales but this only served to erode the company’s operating income.The strength of the US dollar also hurt the business.The increased budget was part of a jumpstart program for Alcon that included moving their drug range to Novartis’ pharmaceutical division, however, revenue still declined by US$12.32 billion (AU$16 b) or 2% in the last quarter of 2016 compared to the same period in 2015.In the three months prior to Decber 31, net income also fell by 11% or US$936 million (AU$1.2 b) compared with the same period in FY16.Jimenez said the company had yet to see a return on the investments and that revenue performance is expected to rain flat this year.However, he did predict growth by 2018 as the company aims to focus on its core businesses. Novartis acquired Alcon seven years ago for US$51.6 billion (AU$67.3 b) from Nestle, as Novartis tried to capitalise on the fast-growing global eye care market.
CR Labs launches Australis Easy Multifocal Lens
Independent ophthalmic lens supplier CR Labs has launched Australis Easy, a multifocal lens the company says represents a breakthrough in...