Chairman-designate, Mike Ball and CEO, David Endicott, will be joined by other senior management to discuss Alcon's strengths and how the company is positioned to win in the large, attractive and growing eye care devices market, where it is already the global leader. They will present Alcon's vision and strategy, near- and longer-term growth drivers, five-year financial goals and the benefits of Alcon as a standalone company.
Mike Ball, Chairman-designate of Alcon, said: "Alcon has been a leader in the ophthalmic industry for over 70 years and is dedicated to providing innovative products that enhance quality of life by helping people see better. More recently, Alcon has executed a turnaround plan that has reinvigorated its pipeline, strengthened its customer relationships, and increased investments in promotion, capital and systems while developing a nimble medical device culture. These actions have strengthened its foundation and positioned Alcon well to become a standalone company."
David Endicott, CEO of Alcon, said: "As the leading eye care devices company in the world, with $6.8 billion in sales in 2017, we are uniquely positioned to succeed as a standalone organization. Our legacy of industry firsts and advancements, our leading positions in the markets we operate in and our substantial investment in innovation position us well for the future. We look forward to sharing our strategy, vision and financial goals with investors and analysts at our Capital Markets Day events."
Mega-trends shape future of eye careAlcon will highlight mega-trends shaping the future of eye care, including the aging global population, innovation that improves patient options and outcomes, increasing wealth and growth in emerging economies, and the prevalence of myopia and digital eye strain. These trends present Alcon with sizeable growth opportunities in the $23 billion eye care devices market. Alcon will also showcase its leading ocular solutions for refractive disorders, presbyopia, dry eye, cataracts and retinal diseases.
CFO David Murray will highlight how Alcon has returned to a position of strength by delivering consecutive quarters of sales growth, and how the company plans to make steady core operating margin improvements to industry benchmark levels, from high teens today to low to mid 20s by 2023. Post-spinoff, Alcon is targeting an investment grade credit rating and will have a financial framework focused on sales growth, operational excellence and free cash flow generation. Priorities will include investment in organic growth and R&D, a disciplined focus on "bolt-on" acquisition, licensing and collaboration opportunities, and returns to shareholders with Alcon expecting to pay a regular cash dividend from 2020.
Michael Onuscheck, President Global Business & Innovation, will highlight Alcon's market leadership in its Surgical Franchise, with 2017 global sales of $3.7 billion. He will highlight strong fundamentals, including world class customer focus, a leading portfolio of in-market innovations and a strong pipeline. He will also discuss Alcon's best-in-class equipment platforms and the expansion potential of its leading installed base and complementary consumables business, as well as key near-term growth drivers such as advanced technology intraocular lenses (AT-IOLs) and leading-edge vitreoretinal technologies.
Andy Pawson, President & General Manager, Global Vision Care Franchise, will provide an overview of Alcon as one of the leaders in the $14 billion vision care market, with 2017 global sales of $3.1 billion. Key trends in contact lenses include the shift from reusable to daily disposable lenses and increasing demand for premium lenses such as toric, multifocal and cosmetic. In ocular health, increased awareness of treatment options for dry eye is driving demand. He will also discuss near-term growth drivers, which are the DAILIES TOTAL1 contact lens portfolio and its market-leading dry eye treatment, SYSTANE.
The Alcon executive team will also discuss their expectations for the primary drivers of longer term vision care and surgical growth. These include the acceleration of innovation, expansion into new markets and adjacencies, as well as new business models and go-to-market solutions, which better serve the needs of eye care professionals, patients and consumers.
Franck Leveiller, Senior Vice President, Head of Global R&D, will discuss Alcon's aspiration to lead the world in eye care innovation. He will highlight Alcon's history of industry firsts, positioning as the partner of choice for external innovation, and continued commitment to R&D investment resulting in a pipeline fueled for growth. He will discuss Alcon's world-class capabilities in optics, material and surface chemistry, equipment and instrumentation, and automation, which is already delivering improved cycle times, increased flexibility and productivity enhancements.
Spinoff completion subject to approvals and conditions being metCompletion of the planned spinoff is subject to general market conditions, receipt of necessary authorizations, tax rulings and opinions, final endorsement by the Board of Directors of Novartis and shareholder approval at the Novartis annual shareholder meeting on February 28, 2019. If approvals are secured and conditions are met, the spinoff is expected to be completed in the first half of 2019.
Alcon's next Capital Markets Day will be in London on December 4, 2018.
About NovartisNovartis is reimagining medicine to improve and extend people's lives. As a leading global medicines company, we use innovative science and digital technologies to create transformative treatments in areas of great medical need. In our quest to find new medicines, we consistently rank among the world's top companies investing in research and development. Novartis products reach nearly 1 billion people globally and we are finding innovative ways to expand access to our latest treatments. About 125 000 people of more than 140 nationalities work at Novartis around the world.
About AlconAlcon is the global leader in eye care devices. As a division of Novartis, we offer the broadest portfolio of products to enhance sight and improve people's lives. Our products touch the lives of more than 260 million people each year living with conditions like cataracts, glaucoma, retinal diseases and refractive errors, and there are millions more who are waiting for solutions to meet their eye care needs. Our purpose is reimagining eye care, and we do this through innovative products, partnerships with eye care professionals and programs that enhance access to quality eye care.