Broadwood urges Staar Surgical shareholders to vote against Alcon transaction

Broadwood Partners issued a letter to the Board of Directors of STAAR Surgical Company (STAA). Broadwood, which owns 30.2% of STAAR’s outstanding common stock, continues to urge its fellow shareholders to vote “AGAINST” the proposed acquisition of STAAR by Alcon (ALC). The letter read in part, “Since the announcement of STAAR’s proposed sale to Alcon in August, we have been engaged in a spirited debate with you over the Company’s prospects and the merits of the proposed deal. As you know, we have felt from the start that this transaction materially undervalues STAAR and was the product of a deeply flawed process undertaken at the wrong time in STAAR’s history. As we approach the thrice-delayed special meeting of shareholders, we are confident our fellow shareholders will agree with us and reject this ill-advised transaction. Several large shareholders, all three proxy advisory firms and at least one of the Company’s own directors have rightly expressed great skepticism about the process, timing and price of the proposed deal…With inventories normalizing in China and new products being launched, our analysis and financial models indicate that there is a clear path to a $50 per share stock price next year, even without a return to normal growth rates in the global refractive surgery market. We also are confident that the refractive market’s return to normal growth is a matter of when, not if. We should all keep in mind that, just a few years ago, when this business was significantly smaller, STAAR’s stock price reached $160 per share. Now, the management team is projecting strong growth, great margins, substantial operating leverage, and considerable free cash flow…STAAR’s future is bright, so it should be allowed to shine. We are eager to work with you and other shareholders as soon as possible. We have never sought control of STAAR, nor are we doing so now. A collaborative approach, with a sense of urgency, is what is needed.’