Alcon Inc.: PharmaVitae Profile

This analysis examines the historical and forecast performance for Alcon in the prescription pharmaceutical sector. The profile encompasses global company strategy, portfolio and pipeline analysis and assessment of financial performance, with 1-6 year sales forecasts for key drugs. An interactive forecasting and analysis tool provides continually updated quantitative and qualitative information.

Report Highlights

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CHAPTER 1 ABOUT THIS PROFILE 2
Executive summary 2
Quarterly news update 2
Company introduction 2
Company sales 2
Company financials 2
Key products and competitors 3
Data sourcing 3
Sales data 3
Analyst consensus 3
CHAPTER 2 EXECUTIVE SUMMARY 4
Key findings 4
Prescription pharmaceutical sales performance, 2001-13 5
Financial performance, 2001-13 6
Alcon: PharmaVitae forecasts at a glance 7
Strategic insight 8
Global leader in ophthalmology 8
Broad coverage of attractive markets 8
Margin expansion to maximize operating profit 8
Ophthalmology focus may restrict opportunity 10
Challenges faced in ophthalmic markets 10
Limited availability of externally discovered products 10
Potential consolidation with Novartis would allow further synergies 11
Two-step agreement to sell Nestlé's holding 11
Complementary fit with Novartis' ophthalmics business 12
SWOT analysis 14
CHAPTER 3 QUARTERLY NEWS UPDATE 18
Product developments 18
Deals and alliances 19
Product deals 19
Technology deals 20
M&A activity 20
Company announcements 20
Future product milestones 21
CHAPTER 4 COMPANY INTRODUCTION 22
Key findings 22
Overview 23
Key corporate developments 23
M&A history 24
Current corporate structure 25
CHAPTER 5 COMPANY SALES 26
Key findings 26
Prescription pharmaceutical sales and growth rate analysis, 2001-13 27
Product analysis 30
Product analysis, 2001-07 30
Product analysis, 2007-13 33
Therapy area analysis 37
Therapy area analysis, 2001-07 39
Therapy area analysis, 2007-13 41
Therapy area focus, 2001-13 45
Geographic analysis 49
Geographic analysis, 2001-07 50
Geographic analysis, 2007-13 51
Geographic focus, 2001-13 54
Launch/core/expiry analysis 56
Explanation of launch/core/expiry analysis 56
Launch analysis, 2007-13 57
Core analysis, 2007-13 60
Expiry analysis, 2007-13 62
Launch/core/expiry configuration, 2007-13 64
Molecule type analysis 66
Molecule type analysis, 2001-07 67
Molecule type analysis, 2007-13 68
Externalization analysis 70
Externalization analysis, 2001-07 71
Externalization analysis, 2007-13 72
CHAPTER 6 COMPANY FINANCIALS 75
Key findings 75
Reconciliation between PharmaVitae-formatted prescription pharma sales and company-reported total sales, 2001-07 76
Financial statements, 2001-07 78
Profit and loss account, 2001-07 78
Balance sheet, 2001-07 79
Operating costs and profit analysis 82
Operating costs and profit analysis, 2001-07 83
Operating cost ratio and profit margin analysis, 2001-07 84
Operating cost ratio and profit margin analysis, 2007-13 86
Operating costs and profit analysis, 2007-13 88
Return on capital employed analysis 90
Capital employed analysis, 2001-07 91
Return on capital employed (RoCE) analysis, 2001-07 93
Market capitalization analysis 96
Market capitalization analysis, 2001-07 96
Total shareholder returns analysis, 2001-07 98
CHAPTER 7 KEY PRODUCTS AND COMPETITORS 100
Key findings 100
Overview 101
Other 102
Travatan franchise 102
Overview 102
Sales forecast 103
Patanol 105
Overview 105
Sales forecast 106
Azopt 107
Overview 107
Sales forecast 108
Infectious diseases 109
Vigamox 109
Overview 109
Sales forecast 110
Ciprodex 111
Overview 111
Sales forecast 112
Respiratory 113
Patanase 113
Overview 113
Sales forecast 114
CHAPTER 8 APPENDIX 115
R&D pipeline 115
References 116
Abbreviations 116
Exchange rates 118
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Table 1: Alcon - PharmaVitae forecasts at a glance 7
Table 2: Alcon key product developments, Q1-2 2008 18
Table 3: Alcon product deals and alliances, Q1-2 2008 19
Table 4: Alcon technology deals and alliances, Q1-2 2008 20
Table 5: Alcon M&A activity, Q1-2 2008 20
Table 6: Alcon company announcements, Q1-2 2008 20
Table 7: Alcon future product milestones, 2008-10 21
Table 8: Alcon product portfolio overview ($m), 2001-07 30
Table 9: Alcon product portfolio overview ($m), 2007-13 33
Table 10: Alcon product portfolio overview ($m), 2001-07 39
Table 11: Alcon product portfolio overview ($m), 2007-13 41
Table 12: Alcon portfolio overview by geographic region ($m), 2001-07 50
Table 13: Alcon portfolio overview by geographic region ($m), 2007-13 51
Table 14: Alcon launch portfolio overview ($m), 2007-13 57
Table 15: Alcon core portfolio overview ($m), 2007-13 60
Table 16: Alcon expiry portfolio overview ($m), 2007-13 62
Table 17: Alcon portfolio overview by molecule type ($m), 2001-07 67
Table 18: Alcon product portfolio overview by molecule type ($m), 2007-13 68
Table 19: Alcon product portfolio overview by source ($m), 2001-07 71
Table 20: Alcon product portfolio overview by source ($m), 2007-13 72
Table 21: Total Alcon sales by business unit ($m), 2001-07 76
Table 22: Alcon profit and loss account ($m), 2001-07 78
Table 23: Alcon balance sheet ($m), 2001-07 79
Table 24: Alcon operating revenue/cost analysis ($m), 2001-07 83
Table 25: Alcon operating cost ratio analysis (% of total revenues), 2001-07 84
Table 26: Alcon operating cost ratio analysis (% of total revenues), 2007-13 86
Table 27: Alcon operating revenue/cost analysis ($m), 2007-13 88
Table 28: Alcon capital employed ($m), 2001-07 91
Table 29: Alcon EBIT return on capital employed ($m), 2001-07 93
Table 30: Alcon EBIT pre-tax return/Capital employed driver analysis (%), 2001-07 94
Table 31: Alcon market capitalization ($ billion), 2001-07 96
Table 32: Alcon total shareholder returns (annual %), 2001-07 98
Table 33: Key products overview 101
Table 34: Travatan franchise: overview 102
Table 35: Travatan franchise: sales forecast ($m), 2007-13 103
Table 36: Patanol: overview 105
Table 37: Patanol: sales forecast ($m), 2007-13 106
Table 38: Azopt: overview 107
Table 39: Azopt: sales forecast ($m), 2007-13 108
Table 40: Vigamox: overview 109
Table 41: Vigamox: sales forecast ($m), 2007-13 110
Table 42: Ciprodex: overview 111
Table 43: Ciprodex: sales forecast ($m), 2007-13 112
Table 44: Patanase: overview 113
Table 45: Patanase: sales forecast ($m), 2007-13 114
Table 46: Alcon's R&D pipeline (Phase I-registration) 115
Table 47: Exchange rates, 2007 118
Figure 1: Alcon prescription pharmaceutical performance, sales ($m) and growth rate (%), 2001-13 5
Figure 2: Alcon's financial performance ($m), 2001-13 6
Figure 3: Alcon total revenue, operating profit and EBIT margin, 2001-13 9
Figure 4: Synergies between Alcon and Novartis 13
Figure 5: Alcon SWOT analysis 14
Figure 6: Recent & major M&A/ divestment activity, Alcon 24
Figure 7: Current corporate structure 25
Figure 8: Alcon prescription pharmaceutical performance, sales ($m) and growth rate (%), 2001-13 27
Figure 9: Alcon key sales growth driver & resistors ($m), 2001-07 31
Figure 10: Alcon key sales growth drivers & resistors ($m), 2007-13 34
Figure 11: Alcon prescription pharmaceutical sales by therapy area ($m), 2001-13 37
Figure 12: Alcon prescription pharmaceutical sales by product category, 2001-13 38
Figure 13: Alcon prescription pharma sales by therapy area (% of total), 2001-13 45
Figure 14: Alcon prescription pharma sales by product category (% of total), 2001-13 47
Figure 15: Alcon prescription pharmaceutical sales by geographic region ($m), 2001-13 49
Figure 16: Alcon growth drivers and resistors by geographic region ($m), 2001-07 50
Figure 17: Alcon drivers and resistors by geographic region ($m), 2007-13 52
Figure 18: Alcon prescription pharmaceutical sales by geographic region (% of total), 2001-13 54
Figure 19: Alcon launch/core/expiry configuration ($m), 2007-13 64
Figure 20: Alcon prescription pharmaceutical sales by molecule type ($m), 2001-13 66
Figure 21: Alcon growth drivers and resistors by molecule type ($m), 2007-13 69
Figure 22: Alcon prescription pharmaceutical sales by source ($m), 2001-13 70
Figure 23: Alcon growth drivers and resistors by source ($m), 2001-07 71
Figure 24: Alcon growth drivers and resistors by source ($m), 2007-13 73
Figure 25: Alcon operating revenue/cost analysis ($m), 2001-13 82
Figure 26: Alcon operating cost ratio analysis (% of total revenues), 2001-13 87
Figure 27: Alcon return on capital employed, EBIT margin and capital turnover, 2001-07 90
Figure 28: Return on capital employed formula 94
Figure 29: Alcon market capitalization ($ billion), 2001-07 97
Figure 30: Alcon total shareholder returns vs. S&P 500 ($m), 2002-07 99
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