The Lake Forest-based eye-focused device maker, which makes implantable collamer lenses (ICL) that serve as an alternative to laser-based procedures like LASIK, is maintaining its “track record as the fastest-growing U.S. publicly traded ophthalmology company,” Chief Executive Caren Mason told analysts on the company’s latest earnings call this month.
ICL unit growth for the company (Nasdaq: STAA) spiked 54% in the first quarter of 2021, and accounted for 93% of the company’s total sales of $50.8 million in the period. Overall, sales increased 44% compared to year-ago levels.
“We don’t see this as a catch-up” from the pandemic-related slowdown in procedures, Mason said.
Instead, “we see this as a continuation of the great momentum pre-COVID that began at the end of 2019 into the first couple of months of 2020.”
Shares in the $5.3 billion-valued firm rose as much as 10.4% to $138 a share in the three trading periods following earnings, before settling around $106 a share at press time.
2021 Outlook
Staar Surgical provided a rosy outlook for its full-year 2021, anticipating net sales of $215 million to $217 million, which represents a growth rate that exceeds 30% year-over-year.
Analysts expect the midpoint of $216 million, before a 31% jump to $282 million in 2022.
“Importantly, the breakout growth was described structurally demand driven” that suggests first-quarter results “could be the start of a hyper-growth phase that could last the next several years,” an analyst report from Jeffries said.
Global Reach
Strength in the first quarter was “broad-based” with record growth in all global regions: Japan, up 72%; China, up 63%; Germany, up 48%; EU distributors, up 54%.
ICL traction was attributed to a combination of direct-to-consumer marketing efforts which are expected to increase in the second quarter; increased surgeon uptake in key geographies; and a continued shift from laser vision correction to lens-based vision correction, according to Jeffries.
CEO Mason noted as an example the company recently kicked off an advertising campaign featuring Japanese television and fashion celebrity Mayuko Kawakita, who is typically on local television every few days in Japan and has over 1.6 million followers on Instagram.
“I must say that part of the excitement at Staar is being an internationally immersed company as we build our direct-to-consumer campaigns to be suited specifically for local taste and patient decision-making,” Mason said.
Staar Surgical submitted clinical data for its EVO Visian (nearsightedness) lens to the Food and Drug Administration in late April.
Given U.S. clinical data and strong five-year data on nearly 1 million EU patients, Jeffries said it expects an 85% chance of approval around October.
In preparation for the U.S. launch, Mason said the company has hired key U.S. personnel, conducted outreach through surgeon console meetings, and signed dozens of alliance agreements.
The company’s recent “Refractive Relook” promotion in the U.S. also led to ICL unit growth of 46% in the first quarter.
