STAAR Surgical announced that its shareholders voted to reject the amended acquisition agreement with Alcon Inc., ending a $1.6 billion deal that had been in negotiation since August 2025. The amended offer had raised the purchase price to $30.75 per share, a 74% premium over STAAR’s 90‑day VWAP and a 66% premium over the August 4 closing price. The vote, held at a special meeting on January 6, did not reach the 75% threshold required for approval, and STAAR has therefore terminated the agreement with no termination fee payable by either party.
The rejection was driven largely by activist investor Broadwood Partners, which holds 30.2% of STAAR’s shares. Broadwood argued that the company was undervalued and that the deal process had been flawed, and it mobilized other shareholders such as Defender Capital and Yunqi Capital to oppose the merger. The vote was delayed four times before the final meeting, underscoring the contentious nature of the transaction.
STAAR will continue as a standalone, publicly traded company under the ticker STAA. The company’s board has stated that it will focus on maximizing shareholder value through organic growth and operational efficiencies, rather than pursuing a strategic sale. CEO Stephen Farrell said the board approved the deal because it was in the best interests of shareholders, but he expressed respect for the outcome and a commitment to working with shareholders to unlock value independently.
Financially, STAAR reported revenue of $230.59 million for the most recent quarter, reflecting an 11.1% compound annual growth rate over the past three years. However, the company posted a negative earnings‑per‑share figure and a net margin that slipped into the negative, driven by a 32.42% decline in revenue over the last twelve months. The decline is largely attributable to weaker demand for the EVO ICL in key markets and increased competition from alternative refractive solutions. Despite these challenges, the company’s balance sheet remains strong, with more cash than debt and a current ratio of 5.21.
Management emphasized that the company’s core product, the EVO ICL, remains a global leader in phakic intra‑ocular lenses, with over 3 million units sold in more than 75 countries. Farrell highlighted a focus on profitable sales growth and distribution efficiencies, while Broadwood founder Neal C. Bradsher praised the company’s potential as a standalone entity and expressed confidence in future growth and margin expansion.
Analysts have cautioned that the deal’s collapse may expose STAAR to greater valuation risk. Some have suggested a price range of $15 to $18 per share for the next twelve months, reflecting concerns about the company’s profitability trajectory and the lack of a strategic partner to accelerate market penetration, particularly in China. The market reaction has been one of heightened scrutiny of STAAR’s standalone prospects, with analysts revisiting their outlooks on revenue growth and margin potential.
Strategically, the Alcon offer had been designed to integrate STAAR’s EVO ICL technology into Alcon’s surgical portfolio, potentially accelerating adoption in markets where LASIK is less suitable. The rejection leaves STAAR to pursue its own growth path, which will require overcoming headwinds such as limited product diversification, reliance on a single flagship product, and competitive pricing pressures. The company’s future success will hinge on its ability to expand sales in existing markets, explore new geographic opportunities, and maintain cost discipline to improve margins.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.