walmart stock prices for last three years

Source: Company reports, Robert W. Baird & Co, Inc. estimates.

Figure 3. Current and projected silicone hydrogel revenue growth for the U.S. market.

In April 2007 the Contact Lens Consumer Health Protection Act (CLCHPA), HR 2012, was introduced to the U.S. House of Representatives. The AOA is working with Representatives Mike Ross (DAR), Ed Whitfield (R-KY) and John Boozman, OD (R-AR) to build support for HR 2012. The CLCHPA seeks to amend the Fairness to Contact Lens Consumers Act (FCLCA) of 2004 to require all contact lens sellers to provide a toll-free phone number and dedicated e-mail address for the purpose of receiving communication from prescribers.

Our readers also see their toric and multifocal/bifocal businesses growing (58 percent and 71 percent, respectively).

Consumer data provided by CIBA indicates that 87 percent of Focus Dailies wearers are compliant with this modality, compared to 35 percent of total soft lens wearers. Our readers reported that about 22 percent of daily disposable wearers are compliant with the daily disposable modality and that 44 percent of two-week lens wearers are complaint with replacement schedules. However, they feel that only 8.5 percent of patients who require a lens care system are compliant with lens care instructions.

Daily Disposable Lenses A survey of 227 Contact Lens Spectrum readers revealed that 52 percent of new fits and refits were with a silicone hydrogel material compared to 35 percent with hydrogels, with 12 percent of all soft lens refits and new fits in a daily disposable modality. This figure is similar to the 10 percent market share of daily disposables in the U.S. market compared to 33 percent worldwide mentioned previously. Figure 6 shows projections for 2008 as well. Cost is the most prohibitive factor for this modality in the United States, overshadowing its convenience and possible compliance and health benefits. Our reader survey indicates that 66 percent of respondents feel they will increase their daily disposable business in the next year.

According to data on file from CIBA Vision, 3rd quarter 2007 retail sales showed the hydrogen peroxide category accounted for 14 percent of retail sales in the total disinfectant category, the highest share achieved in the United States since 2005.

Source: Company reports, Robert W. Baird & Co, Inc. estimates.

Figure 2. Silicone hydrogel lenses lead the U.S. market.

Source: Company reports, Robert W. Baird & Co, Inc. estimates.

Figure 1. Daily disposable spherical lenses are most prescribed globally.

Lens Care Market A.C. Nielsen data on solution market share through 2007 shows that private-label solutions represent one quarter, with all Alcon products at 39 percent. Multipurpose solutions still dominate share at about 89 percent with hydrogen peroxide-based systems at about 11 percent. ClearCare claimed 9 percent of the 11 percent share. These data do not include Wal-Mart or "club segments" (Costco, Sam's Club, BJ's) but do include other mass merchandisers and grocers. These data also reflect AMO Complete MoisturePlus through May 2007 and Complete Multi-Purpose Solution Easy Rub Formula's entry in August.

Silicone Hydrogels Silicone hydrogel conversion continues, particularly in the United States at 46 percent of the U.S. contact lens revenue compared to just 15 percent in 2004. The second half of 2007 saw the entry of CooperVision's Biofinity and the re-emergence of CIBA Vision's O2Optix. It should come as no surprise that silicone hydrogel torics are also growing rapidly with nearly 45 percent silicone hydrogel toric penetration expected for 2007 versus less than 10 percent penetration in 2005. Looking at revenue, Figure 3 shows silicone hydrogel revenue for the last few years and a projection of revenue for 2008 in the United States. Figure 4 shows the revenue breakdown of silicone hydrogel lens modalities for 2007. Silicone hydrogel toric lenses account for nearly 35 percent to 40 percent of all toric lens revenue. With both industry and survey data indicating that all silicone hydrogels will continue to grow over the next few years, expect revenue driven by this option — which commands a premium price — to grow as well.

Worldwide soft lens market share is greatest for daily disposables at 33 percent, followed by a combined silicone hydrogel sphere and toric category at 24 percent (Figure 1). The U.S. daily disposable market share is at 10 percent (Figure 2), up from 7.5 percent in 2005 and 8.5 percent in 2006.

Controversy aside, the ophthalmic sector as a whole is up 250 percent over the last five years, which is far ahead of the S&P 500. The contact lens industry remains healthy with industry analysts predicting 7 percent to 8 percent growth both for the United States and worldwide over the next few years. Data obtained from Jeff Johnson, OD, MBA, a senior medical technology analyst with Robert W. Baird & Co. Inc., estimate the worldwide soft contact lens market at $4.8 billion and the U.S. market at $1.8 billion. The worldwide GP lens market contributes another $250 million. Market share by company is similar for the United States and worldwide with Johnson & Johnson dominating at nearly 45 percent. Worldwide soft lens market share for CIBA Vision is 19 percent, followed by CooperVision at 16 percent and Bausch & Lomb at 15 percent.

In 2007, the contact lens industry was graced with growth and product innovations; it was also once again immersed in solution controversy and more than one voluntary product recall. Several patient surveys have made it clear that our patients need better education, both on compliance and availability of current products. For practitioners, this is an opportunity for increased patient communication and practice growth. The global contact lens industry continually amazes me in that it varies so drastically by region and country, yet the good news for all is that industry growth continues.

Dr. Mack is director of clinic services and an associate professor of clinical optometry at The Ohio State University College of Optometry.

A look back at contact lens events of 2007 including prescribing trends, product recalls and launches, compliance issue, mergers and corneal staining.

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