Profile: Alcon Inc (ACL.N)

Alcon, Inc. (Alcon), incorporated in 1971, is a research and development driven, global medical specialty company focused on eye care. The Company develops, manufactures and markets pharmaceuticals, surgical equipment and devices and consumer eye care products to treat diseases and disorders of the eye. Alcon manages its business through two segments: Alcon United States and Alcon International. Its portfolio spans three key ophthalmic categories: pharmaceutical, surgical and consumer eye care products. In its pharmaceutical category Alcon develops, manufactures and markets a range of prescription ophthalmic pharmaceutical products. Alcon offers a range of surgical equipment, single-use and disposable products. The Company markets contact lens care products, artificial tears and ocular vitamins, in its consumer eye care products category. In July 2008, Novartis AG acquired a 25% stake in Alcon from Nestle SA.

Pharmaceutical Products

The Company offers TRAVATAN, TRAVATAN Z and DuoTrav for glaucoma treatment. In addition, it offers a line of glaucoma products, including Azopt and Betoptic S ophthalmic suspensions. Azopt is a carbonic anhydrase inhibitor, shown to be an adjunct therapy when used with other glaucoma therapies, including prostaglandin analogues. During the year ended December 31, 2008, the Company received approval from the European Medicines Agency to launch AZARGA ophthalmic suspension, a fixed combination for the treatment of glaucoma containing a topical carbonic anhydrase inhibitor and a beta blocker.

The Company manufactures and markets a range of drugs to treat bacterial, viral and fungal infections of the eye, and to control ocular inflammation. Alcon’s principal ocular anti-infective product is Vigamox ophthalmic solution utilizing moxifloxacin to treat bacterial conjunctivitis. NEVANAC is a non-steroidal anti-inflammatory drug (NSAID) offered by the Company in the United States market for the treatment of pain and inflammation associated with cataract surgery. During 2008, it also executed several launches of NEVANAC outside the United States. Alcon’s combination ocular anti-infective/anti-inflammatory product, TobraDex ophthalmic suspension and ointment, combines a range of antibiotic with an anti-inflammatory. The Company markets and manufactures products for the treatment of ocular allergies.

Patanol ophthalmic solution is a dual-action active ingredient, which acts as both an antihistamine and a mast-cell stabilizer. It has a co-marketing agreement in Japan with Kyowa Hakko Kogyo Co., Ltd. (Kyowa Hakko), a Japanese pharmaceutical company, whereby Kyowa Hakko promotes Patanol to non-eye care physicians and it promotes the product to eye care physicians. It sells Patanol in more than 100 countries.

Alcon markets combination anti-infective/anti-inflammatory products for ear infections. CIPRODEX otic suspension for the treatment of otitis media in the presence of tympanostomy tubes (AOMT) and of otitis externa, also known as swimmer's ear, is marketed in the United States and a small number of countries outside the United States. In addition, Cipro HC Otic, for the treatment of otitis externa, is marketed in over 30 countries. Falcon Pharmaceuticals, a subsidiary of the Company, manufactures and markets generic ophthalmic and otic pharmaceutical products in the United States. Falcon's sales, in 2008, were 3.6% of Alcon’s total global pharmaceutical sales. Falcon manufactures and markets approximately 30 generic pharmaceutical products. Falcon's largest product is Timolol GFS, a gel-forming solution used to treat glaucoma, which accounts for 37.4% of Falcon's sales. Falcon's other principal generic products include Prednisolone Acetate (used for the treatment of inflammation of the eye), Timolol Solution (for the treatment of glaucoma), Trifluridine (used to treat viral infections of the eye), Brimonidine 0.2% (for the treatment of glaucoma), Ciprofloxacin (used to treat infections of the eye), and Neomycin and Polymyxin B Sulfates, and Hydrocortisone otic and ophthalmic suspensions (sterile antibacterial and anti-inflammatory combination products for the treatment of bacterial infections in the ear and the eye, respectively).

The Company competes with Allergan, Inc., Bausch & Lomb Incorporated, Pfizer, Inc., Merck & Co., Inc., Daiichi Pharmaceutical Co., Ltd., Inspire Pharmaceuticals Inc., ISTA Pharmaceuticals Inc., Vistakon Pharmaceuticals, LLC (a Johnson & Johnson company), Genentech Inc. and Santen Pharmaceutical Co., Ltd.

Surgical Products

Alcon offers a range of surgical equipment, single-use and disposable products, such as Infiniti vision system, a lens removal system, and OZil torsional technology, a lens removal modality. Its line of single-use products for cataract procedures includes the cassettes used in the Infiniti, Laureate and LEGACY surgical systems, a line of viscoelastics to protect delicate tissues of the eye during the procedure, surgical knives and surgical irrigating solutions. The Company’s AcrySof intraocular lenses are implanted intraocular lenses. The AcrySof IQ intraocular lens is an intraocular lens that combines an aspheric design with ultraviolet and blue-light-filtering. The AcrySof Toric intraocular lens is a lens that corrects for various levels of pre-existing astigmatism in cataract patients.

The Accurus surgical system integrates all automated, non-laser surgical functions used in vitreoretinal surgery. Some Accurus models also can be used for cataract removal. In addition to the Accurus, the Company also sells a line of vitreoretinal products, including surgical therapeutics, lasers, ultrasound diagnostics and hand-held microsurgical instruments. In 2007, Alcon’s products for vitreoretinal surgery accounted for 11.1% of its total surgical sales.

Alcon markets its Custom Pak for cataract, refractive and vitreoretinal surgical procedures. Unlike conventional surgical procedure packs, the Custom Pak allows ophthalmic surgeons and their staff to customize and sequence the products included in the surgical procedure pack. In 2008, sales of the Company’s laser refractive products and related technology fees were 4% of its total surgical sales.

The Company competes with Bausch & Lomb, Advanced Medical Optics, Inc. and Hoya Corporation.

Consumer Eye Care Products

The Company markets contact lens care products, artificial tears and ocular vitamins. The vast majority of the Company’s contact lens care products comprise disinfecting solutions to remove harmful micro-organisms on contact lenses, with a smaller amount of sales coming from cleaners to remove undesirable film and deposits from contact lenses and lens rewetting drops. In 2008, sales of the Company’s contact lens disinfectants were 55.1% of its total consumer eye care sales.

The Company markets OPTI-FREE RepleniSH, its multi-purpose disinfecting solution, which is approved for silicone hydrogel and all other soft contact lenses. This product utilizes a wetting and reconditioning technology. OPTI-FREE EXPRESS No Rub multi-purpose disinfecting solution utilizes a multi-purpose disinfecting solution with high-capacity disinfection and protein cleaning benefits, without requiring rubbing of the contact lenses. Its line of contact lens care products also includes OPTI-FREE RepleniSH rewetting drops, which moisten contact lenses during wear and reduce protein build-up.

The Company manufactures and markets artificial tears to treat dry eye syndrome and vitamins formulated to promote good ocular health. It offers a line of products for the dry eye sufferer. Systane lubricating eye drops has been launched in more than 85 countries. Systane has an in-the-eye gelling formula that provides long-lasting relief of dry-eye symptoms. It has added a preservative-free, unit-dose Systane to the product line. The Company markets a variety of formulations of ICAPS dietary supplements, including an AREDS formula, one with extra Lutein and Zeaxanthin formula and a multivitamin with additional amounts of compounds that promote eye health.

The Company competes with Bausch & Lomb, Advanced Medical Optics, Rohto Pharmaceutical Co., Ltd., Allergan, Johnson & Johnson and Novartis.