Alcon Stock Rises Following the FDA Approval of TRYPTYR

Alcon ALC recently received Food and Drug Administration (“FDA”) approval for its TRYPTYR (acoltremon ophthalmic solution) 0.003%. TRYPTYR is indicated for the treatment of the signs and symptoms of dry eye disease (“DED”). 

The latest approval is expected to bolster the company’s Vision Care segment. Further, ALC plans to launch TRYPTYR in the United States in the third quarter of 2025. 

Likely Trend of ALC Stock Following the News

Following the announcement, shares of Alcon edged up 2.5% in the after-market trading session yesterday. However, year to date, ALC’s shares have gained 0.6% against the industry’s 9.1% decline. The S&P 500 has increased 0.2% in the same time frame.

The company’s Surgical segment continues to gain from its diverse portfolio and incremental innovation. Within the segment, Alcon is witnessing solid growth, banking on strong sales of its ocular health products. Ocular Health continues to report strong performance with its portfolio of eye drops. Henceforth, we expect the market sentiment toward ALC stock to remain positive in the wake of the latest FDA approval. 

ALC currently has a market capitalization of $42.18 billion. The company beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 2.85%. 

Importance of Alcon’s TRYPTYR

DED is a complex, multifactorial condition driven by a deficiency in natural tears, whether due to decreased tear production or increased tear evaporation. Many commonly used DED treatment options have limitations, including slow onset, patient dissatisfaction and poor adherence. TRYPTYR is the first eye drop that stimulates corneal nerves to directly address tear deficiency. This eye drop is a new treatment option for a significant number of dry eye patients, given its rapid efficacy. 

More on TRYPTYR’s FDA Approval

The FDA approval was supported by two Phase 3 clinical trials evaluating more than 930 patients with a history of DED. Consistent results were observed at all timepoints throughout 90 days. TRYPTYR demonstrated statistically significant natural tear production as early as Day 1. Studies in animals suggest that acoltremon, the active substance in TRYPTYR, is an agonist of transient receptor potential melastatin 8 (TRPM8) thermoreceptors. TRPM8 thermoreceptor stimulation has been shown to activate trigeminal nerve signaling, leading to increased basal tear production. 

Industry Prospects Favor Alcon

DED is one of the most common ocular surface disorders, affecting an estimated 38 million adults in the United States and an estimated 719 million adults globally. While once considered a disease of aging populations, modern advancements, such as prolonged digital screen time, have contributed to a significant rise in DED across all age groups and genders.

Per a Fortune Business Insights’ report, the global DED market size was valued at $7.02 billion in 2023 and is projected to grow to $13.00 billion by 2032, exhibiting a compound annual growth rate of 7.1% from 2024 to 2032. 

Another Development by Alcon

Last month, Alcon introduced the Clareon PanOptix Pro intraocular lens (IOL) for cataract patients in the United States. The PanOptix Pro Trifocal IOL is a type of multifocal IOL used for focusing images clearly onto the back of your eye (retina) to allow clear vision after cataract removal.

ALC’s Zacks Rank & Stocks to Consider

ALC carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are Phibro Animal Health PAHC, AngioDynamics ANGO and STERIS STE. 

PAHC carries a Zacks Rank #1 (Strong Buy) at present. It has an estimated long-term earnings growth rate of 26.2% compared with the industry’s 15.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 30.6%. Its shares have rallied 26.3% compared with the industry’s 10% growth in the past year.

AngioDynamics, carrying a Zacks Rank #1 at present, has an estimated earnings growth rate of 23.7% for 2025. ANGO’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 70.85%. ANGO’s shares have risen 49.2% in the past year compared with the industry’s 5.5% growth.

STERIS, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 10.8% for 2025. STE’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 0.61%. Its shares have risen 34.1% compared with the industry’s 7.7% growth in the past year. 

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This article originally published on Zacks Investment Research (zacks.com).

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