Full Press Release Details
Independent Director Committee Commends Alcon on Stronger Than Expected Q2
HUENENBERG, Switzerland - July 26, 2010
- The Alcon Independent Director Committee (the "Committee") noted today
that Alcon once again delivered strong earnings in the second quarter of 2010.
Alcon's 2Q 2010 Adjusted EPS of $2.22 per share represented a year-over-year
growth rate of 14.4% and exceeded Wall Street's mean consensus estimate of $2.03
per share by 9.4%. Alcon's strong EPS growth was driven by an 11.3% increase in
organic sales resulting, in part, from a 22.3% increase in advanced technology
intraocular lens sales, a 17.2% increase in glaucoma sales and a 24.2% increase
in emerging market sales.
beginning of the year, Alcon has raised its full-year 2010 EPS guidance from a
range of $7.30 - $7.55 per share to $7.45 - $7.62 per share. This steady
earnings generation and ability to exceed consensus Wall Street expectations,
even in the face of macro-economic and regulatory challenges and uncertainties,
underscores why investors have consistently afforded Alcon a premium valuation
compared to peers. In response to Alcon's strong performance this
year, Wall Street research analysts have raised consensus estimates for Alcon
for 2010, as well as the outlook for 2011 and beyond.
Plaskett, Chairman of the Committee, said, "Alcon has delivered yet another
impressive quarter, and has raised its sales and earnings guidance for the year.
These latest results highlight the fact that Alcon's underlying business
fundamentals continue to build upon the momentum of previous quarters. The
results also further illustrate management's ability to exceed the market's
expectations on a consistent basis. In addition to strong operating results,
Alcon recently announced the acquisition of LenSx Lasers, Inc., which is yet
another example of the strategic business development activities that Alcon has
undertaken over the past two years to drive near and long-term revenue growth,
meaningfully strengthen its new product pipeline and add new platform
capabilities. These activities were not part of the plan when Novartis first
announced its acquisition of Nestl 's shares in 2008, and they add meaningfully
to Alcon's intrinsic value."
Plaskett continued, "We encourage Novartis to recognize the Company and its
employees for their efforts and reflect it in Novartis' valuation of Alcon's
minority shares. Our recent investor meeting in New York demonstrated the
steadfast support the Committee has from the minority shareholders, who believe
strongly that Novartis must deliver appropriate value for their
current offer of 2.8 shares of Novartis stock for each outstanding share of
Alcon stock is currently valued at approximately $138, which represents a ~24%
discount to the $181.71 that Nestl is receiving for control and a ~16% and ~8%
discount to the prices one day and one month before Novartis' offer was made,
& Co., Sullivan & Cromwell LLP and Pestalozzi, Zurich, are continuing to
act as advisors to the Committee.
information regarding the proposal will continue to be posted on the Committee's
Web site: www.transactioninfo.com/alcon.
Group (212) 333-3810
Marese/Larry Dennedy
Partners 800-322-2885
Inc. is the world's leading eye care company, with sales of approximately $6.5
billion in 2009. Alcon, which has been dedicated to the ophthalmic industry for
65 years, researches, develops, manufactures and markets pharmaceuticals,
surgical equipment and devices, contacts lens solutions and other vision care
products that treat diseases, disorders and other conditions of the eye. Alcon
operates in 75 countries and sells products in 180 markets. For more information
on Alcon, Inc., visit Alcon's web site at www.alcon.com.
Caution Concerning Forward-Looking
Statements. This press release may contain forward-looking statements
within the meaning of the United States Private Securities Litigation Reform Act
of 1995. Any forward-looking statements reflect the views of the Committee as of
the date of this press release with respect to future events and are based on
assumptions and subject to risks and uncertainties. Given these uncertainties,
you should not place undue reliance on these forward-looking statements. There
can be no guarantee that Novartis or Alcon will achieve any particular future
financial results or future growth rates or that Novartis or Alcon will be able
to realize any potential synergies, strategic benefits or opportunities as a
result of the consummation of the Novartis purchase or the proposed merger.
Also, there can be no guarantee that the Committee will obtain any particular
result. Except to the extent required under the federal securities laws and the
rules and regulations promulgated by the Securities and Exchange Commission, we
undertake no obligation to publicly update or revise any of these
forward-looking statements, whether to reflect new information or future events
or circumstances or otherwise.