FTC Stops Proposed Merger of Cataract Surgery Device Makers
Summary
The FTC announced that Alcon, Inc. has abandoned its efforts to purchase LENSAR, Inc. following substantial competitive concerns identified by the FTC. The proposed merger would have combined the two leading providers of laser systems for cataract surgery, potentially harming price competition and innovation.
What changed
The Federal Trade Commission (FTC) has announced that Alcon, Inc. has withdrawn its proposed acquisition of LENSAR, Inc. The FTC's Bureau of Competition identified significant concerns that the merger would have combined the two primary competitors in the market for femtosecond laser systems used in cataract surgery (FLACS). This competition had previously benefited doctors and patients through price reductions and spurred innovation.
The FTC's intervention, which included evidence of potential consumer harm, led Alcon to abandon the deal rather than face litigation. The FTC's action aims to preserve price competition, promote innovation in the FLACS market, and protect manufacturing jobs. The FTC, in partnership with the Florida Attorney General's Office, will continue to monitor such transactions.
What to do next
- Review merger activity for potential antitrust implications.
- Monitor FTC enforcement actions in the healthcare sector.
Source document (simplified)
- Competition
- Bureau of Competition
- Merger
- Health Care In response to the announcement that Alcon, Inc. and Alcon Research, LLC (collectively referred to as Alcon) has abandoned its efforts to purchase LENSAR, Inc. (Lensar), Federal Trade Commission Bureau of Competition Director Daniel Guarnera issued the following statement:
“The Bureau’s American Competition Enforcement (ACE) Division identified substantial competitive concerns with this transaction, which would have combined the two most significant players in the market for laser systems used in femtosecond laser-assisted cataract surgery, known as FLACS. Alcon and Lensar were locked in a price war that had already benefited doctors offering FLACS-assisted cataract procedures, as well as their patients. The vigorous competition between Alcon and Lensar had also spurred innovation in the FLACS market.
Competitors simply cannot attempt to buy out rivals to get out from the heat of pricing and innovation competition. I’m proud of the work done by ACE in this investigation, which produced evidence of consumer harm so substantial that the merging firms threw up a white flag rather than risk facing the FTC in court. ACE’s work will help preserve price competition for FLACS devices, promote innovation in this industry, and protect American manufacturing jobs.
I want to thank our colleagues in the Bureau of Economics for their important work on this investigation. I’d also like to thank the Florida Attorney General’s Office for Florida’s partnership throughout this investigation. The Bureau of Competition and its state partners will remain vigilant in protecting Americans from bad deals.”
The Federal Trade Commission works to promote competition, and to protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. You can learn more about how competition benefits consumers, file an antitrust complaint, or comment on a proposed merger. For the latest news and resources, follow the FTC on social media, subscribe to press releases, and read our blog.
Contact Information
Media Contact
Victoria Graham Office of Public Affairs 415-848-5121
Return to top
Related changes
Source
Classification
Who this affects
Taxonomy
Browse Categories
Get Courts & Legal alerts
Weekly digest. AI-summarized, no noise.
Free. Unsubscribe anytime.
Get alerts for this source
We'll email you when FTC Competition Press publishes new changes.