If PPP is broken up, Visx will have higher revenues since right now, Visx pays into PPP only PRK license fees, not LASIK, which is currently the majority procedure. These Visx PRK fees go to PPP, which then pays back to Visx $140, and $110 to Summit, even though Summit now has astigmatism approval. That's what Visx told me.
Summit also pays its PRK licensing fees into PPP, which then pays back to Summit $125, and Visx $125.
So, without PPP, Visx will get $250 per PRK without having to pay into PPP and lose $110 to Summit (along with current LASIK $250 fee). Visx lasers are doing 70% of all procedures. This means Summit, which is currently getting fees back from PPP disproportionately to its actual procedure count, will no longer be sucking money away from Visx, while Visx will get full attribution for its lasers' productivity.
Additionally, absence of PPP expenses will add to Visx earnings. Summit's too. |
