Difficult Days for Laser Vision Correction Market and AMO

Article preview reprinted Medtech Insight - January 2009

As economic conditions worsened over the course of 2008, consumers pulled back on discretionary, big-ticket purchases, directly impacting laser vision correction volume trends in the US, including the popular LASIK procedure. At the same time, the cataract surgery market seems to be recession-proof.

Difficult Days for Laser Vision Correction Market and AMO

Article preview reprinted Medtech Insight - January 2009

At the recent meeting of the American Academy of Ophthalmology (AAO), held in November in Atlanta, the hottest topic of conversation was the deteriorating state of the refractive surgery market. As economic conditions worsened over the course of 2008, consumers pulled back on discretionary, big-ticket purchases, directly impacting laser vision correction (LVC) volume trends in the US, including the popular laser in-situ keratomileusis (LASIK) procedure. The ophthalmic companies most affected by these negative trends have been market leader Advanced Medical Optics Inc. (AMO), along with service providers such as LCA-Vision Inc. and TLC Vision Corp.

Cataract surgery, which is reimbursed by Medicare and is not considered an elective procedure, has fared much better in the current economic environment. Cataract procedures and product sales have continued to grow at single-digit rates. The premium segment of the cataract surgery market, which involves additional out-of-pocket payment by patients for the new generation of presbyopia-correcting intraocular lenses (PC-IOLs), remained relatively steady throughout 2008.

LASIK Market: As Goes the Economy
LVC, including LASIK, represents a high-cost, discretionary purchase, and the correlation between the economic environment and LVC procedure volume has been well documented. This can be illustrated in the historical relationship between US LVC procedure volumes and two important economic metrics: consumer confidence (as measured by the University of Michigan Index of Consumer Sentiment) and stock prices (as measured by the S&P 500 Index).

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Companies mentioned in this article:

Advanced Medical Optics Inc.

IntraLase Corp.

Visx Inc.

Bausch & Lomb Inc.

Nestle SA

Alcon Inc.

Alcon Laboratories Inc.


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