Alcon's (ALC) acquisition of Neurotech Pharmaceuticals could become a significant revenue growth driver over time, supported by the commercial opportunity for its Encelto retinal treatment, Needham said Wednesday in a note.
Alcon acquired Neurotech for $550 million plus potential milestone payments. The investment firm said the deal is expected to be modestly accretive to revenue growth but slightly dilutive to EPS in 2027 before turning accretive thereafter.
Neurotech's Encelto is the only commercial treatment in the US for adults with idiopathic macular telangiectasia type 2, a rare retinal disease, according to the note.
Encelto's J-code became effective on Oct. 1, 2025, and the treatment is priced at nearly $250,000 per implant, which lasts more than two years. As of Q1, Neurotech had performed more than 100 procedures, representing about $25 million in potential sales assuming all cases were commercial.
Meanwhile, 700 patients were enrolled in its patient portal, representing roughly $175 million in potential sales if all were commercial, Needham said.
Given Encelto's price per implant and an estimated 25,000 US patients with the condition, representing a nearly $6 billion total addressable market, Needham expects the treatment to be a decent revenue growth driver for Alcon. The brokerage also sees potential for Neurotech's encapsulated cell therapy platform to address other retinal diseases.
Needham kept a buy rating on Alcon, with a $98 price target.
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