STAAR Surgical Company (STAA) Stephens 26th Annual Investment Conference | NASH2024 summary

Business overview and product positioning

• Focuses on lens-based vision correction for myopia, offering an alternative to cornea-based procedures like LASIK and PRK.

• EVO lens, the next-generation product, has global approvals and is especially strong in China, Europe, and the US.

• Over 3 million lenses sold worldwide, with recent years driving most of the volume and revenue growth.

• Despite macroeconomic headwinds in 2024, continues to gain market share and expects revenue growth above 6-7% year-over-year.

• Sees current market softness as transitory, with expectations for a rebound as consumer confidence returns.

Market dynamics and growth strategies

• LASIK procedures are down significantly in the US, China, and Europe, but EVO is gaining share as patients delay rather than switch procedures.

• US market focus is on high myopia patients, but efforts are underway to expand to lower diopter ranges by increasing surgeon confidence.

• Initiatives include AI tools and new clinical papers to improve measurement and lens sizing, aiming to reduce uncertainty for doctors.

• FastLink and Highway 93 programs target deeper engagement with high-volume practices rather than broadening to more doctors immediately.

• Pricing flexibility and co-marketing initiatives are used to align economics for surgeons and patients, narrowing the price gap with LASIK.

Operational initiatives and clinical advancements

• AI-based tools and new adjustment factors for biometers are being introduced to improve predictability and confidence in lens selection.

• Head-to-head studies are planned to compare EVO and LASIK on quality of vision, with both subjective and objective measures.

• Experience centers and targeted training for optometrists (ODs) are being launched to expand awareness and adoption.

• FastLink agreements incentivize practices to commit a significant share of refractive volume to EVO, with annual reviews and marketing support.

• Expansion to more doctors is planned as confidence and infrastructure improve, with a focus on brand awareness and consumer marketing.