For viewing: Summit in the spotlight and benefitting from the dramatic growth in laser vision correction. Visx "downgraded".
Subj: OPTISTOCK July 12, 1998
Date: 98-07-11 11:19:53 EDT
From: News@OPTISTOCK.COM (OptiStock)
Sender: OPTISTOCK@PEACH.EASE.LSOFT.COM (OptiStock)
Reply-to: OptiStock@OPTISTOCK.COM
To: OPTISTOCK@PEACH.EASE.LSOFT.COM
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OPTISTOCK
A weekly e-mail newsletter covering publicly
traded optical and vision care companies
Published by Access Media, LLC
July 12, 1998
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Every weekend OptiStock gives highlights of the week's
activity in vision industry stocks. For a free subscription
please visit optistock.com and register.
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OptiStock's alliance with Yahoo! provides continually updated
quotes and linked information for our portfolio of more
than 60 public vision care companies. To access quotes, go
to optistock.com
-----> SPOTLIGHT <-----
This month the OptiStock Spotlight features Summit Technology,
a leading developer, manufacturer and marketer of systems for
laser vision correction. Summit is one of two companies whose
systems are approved by the FDA to perform laser vision
correction in the U.S., and the company is benefitting from
the dramatic growth in these procedures. Visit
optistock.com to learn more.
TWO COMPANIES BET ON ASIAN FUTURE
Santen Pharmaceutical Company now has exclusive rights
to distribute Allergan's (AGN, 49) brimonidine
in Japan. Brimonidine is a selective alpha2 agnonist
that lowers intraocular pressure and can be given to
patients with open-angle glaucoma or ocular hypertension;
Allergan markets it internationally under the brand name
Alphagan. Santen is responsible for future product
development and for obtaining Ministry of Health
approval in Japan. According to Allergan president
and CEO David Pyott, Japan is the world's second largest
pharmaceutical market.
Bausch & Lomb (BOL, 48-1/16) bought 50 percent of the
shares of Young Han Inc., a South Korean company that
has been the exclusive distributor of B&L sunglasses,
contact lenses, and contact lens care products for the
past 15 years. The company was renamed Bausch & Lomb/Young
Han Inc. and may achieve domestic sales of $25 million this
year.
ANALYST ACTION
SBC Warburg Dillon Reed downgraded Laser Vision
Centers (LVCI, 13-5/16) from Strong Buy to Buy. The
analyst also lowered its estimate of the company's
EPS for fiscal 1999 from $.31 to $.23. The new
target price is $17.
Schroder & Co. downgraded Merck & Co. (MRK, 132-1/2)
from Outperform to Perform In Line.
Hambrecht & Quist downgraded VISX (VISX, 63-7/8)
from Strong Buy to Buy. And PaineWebber lowered its
VISX rating from Buy to Attractive.
Prudential Securities downgraded Johnson & Johnson
(JNJ, 71-7/8) from Buy to Hold.
J.P. Morgan upgraded Pharmacia & Upjohn (PNU, 48-11/16)
from Long-Term Buy to Buy.
THE WEEK'S BIG GAINERS...
Because of the July 4 holiday, U.S. markets were
closed for trading last Friday. Compared with last
Thursday's close, the largest percentage gains this
week include...
+ Sunrise Technologies, up 17.6% to 7-15/16
+ Bacou USA, up 9.6% to 22-3/4
+ Sola International, up 8.5% to 34-1/4
+ LCA-Vision, up 7.8% to 3-7/16
+ Summit Technology, up 6.8% to 6-3/8
The biggest point gains for the same period include...
+ Sola International, up 2-11/16 to 34-1/4
+ Pharmacia & Upjohn, up 2-11/16 to 48-11/16
+ Allergan, up 2-7/16 to 49
+ VISX, up 2-3/8 to 63-7/8
+ Bacou USA, up 2 to 22-3/4
...AND LOSERS
Here are the greatest percentage losses since last
Thursday's close:
- First American Health Concepts, down 14.3% to 4-1/8
- InSite Vision, down 13% to 2-15/16
- Paradigm Medical Industries, down 12.1% to 3-5/8
- Sunglass Hut, down 10.2% to 9-7/8
- BMC Industries, down 10.2% to 8-1/4
The biggest point losses for the same period include...
- The Cooper Companies, down 3-3/16 to 32-11/16
- Polaroid, down 2-3/4 to 35-1/8
- PPG Industries, down 1-13/16 to 68-3/16
- Johnson & Johnson, down 1-13/16 to 71-7/8
- Cole National, down 1-1/2 to 37-9/16
NEW MILLENNIUM CARROT
PPG Industries (PPG, 68-3/16) announced the Challenge
2000 stock option, available to more than 30,000 of
its employees worldwide. The option price is $70/share,
and employees may convert their option on 100 shares on
Jan. 31, 2001 if PPG achieves earnings of $7/share no
later than 2000. If the EPS goal is not met, conversion
begins July 1, 2003. The $7 goal would be 76 percent
higher than 1997's results of $3.97. "The stock option
program was created to help PPG people focus on our goals
and to provide a greater stake in our mutual accomplishments,"
said Raymond LeBoeuf, CEO and chairman of the board. "It
is intended to help all PPG people move toward improving our
company's financial performance and value to shareholders."
COOPER REORGANIZES
The Cooper Companies (COO, 32-11/16) is reorganizing,
with multiple management promotions designed to
handle recent growth in sales and employment.
CooperVision will be headed by a triumvirate composed
of Dave Fancher, senior VP of sales and marketing for
the Americas, John Calcagno, senior VP of finance,
administration, and manufacturing, and Anthony Galley,
managing director of Aspect Vision in England. Other
personnel changes were made in clinical affairs, marketing,
and international sales in Latin America and Japan.
TWO COMPANIES HEDGE AGAINST TAKEOVERS
BMC Industries (BMC, 8-1/4) announced a new share
rights plan that among other things provides a
dividend of one preferred share purchase right on
each outstanding share of common stock held as of
July 20. The idea is to incentivize investors to
hold onto their stock and to provide shareholders
fair and equal treatment in case of a takeover attempt,
though BMC said no such attempt is in progress. A
letter with details of the plan will be mailed to
shareholders of record as of July 20.
For similar reasons, LaserSight (LASE, 4-7/8) also
adopted a shareholder rights plan and declared a
dividend of one preferred share purchase right on
each outstanding share of common stock held as of
July 13. Shareholders will receive a letter with
more details. The company noted that shareholder
rights plans exist at about 1,800 U.S. companies.
FDA FINDS MERCK PLANT INCONSISTENT
The FDA informed Merck (MRK, 132-1/2) that while
inspecting the company's West Point, Penn. manufacturing
plant in April and May, it found that the company could
not verify consistent stability on all lots of Pepcid,
Noroxin, or the ophthalmic solution Timoptic, according
to a Reuters report. The FDA said that outdated
equipment, which could not be relied on for consistency,
was in use. Also, the ulcer drug Prilosec was being
manufactured while construction was in progress, ending
in contamination of two lots of a chemical used to make
the drug. (The lots were discarded.) Merck said it plans
to solve the problems.
POSSIBLE GARGOYLES DELISTING
Gargoyles' (GOYL, 1-1/16) common stock may be
delisted, because its assets, calculated as of
March 31, do not meet requirements for listing on
either the Nasdaq National Market or the Nasdaq Small
Cap Market. Trading could continue in the over-the-
counter market, however. Gargoyles representatives
appeared before a Nasdaq hearing panel with a plan
for meeting requirements; the panel has not yet issued
a decision.
Other Gargoyles news:
- The company will close its London office this month
and shift all international sales management to its
Kent, Washington headquarters.
- A federal district court in Massachusetts ruled that
Aearo Corporaion infringed Gargoyles' dual lens toric
curve patent. A trial will still take place early
next year, to decide on a damage award and whether
the patent was indeed validly issued. In 1995, Gargoyles
won a case against the U.S. government in which the
patent's validity was questioned and now collects a
royalty of 10 percent on all infringing product the
government buys.
- Recently, various Gargoyles products were awarded
certain domestic and international industrial and
ballistics certifications. As a result, the company
may now enter more industrial eyewear markets, as well
as sell one of its products to NATO armed forces.
RACE PLAYS ROLE IN GLAUCOMA TREATMENT
Blacks may require a different glaucoma treatment
than whites, says research by the National Eye Institute.
Apparently, blacks are more likely to retain their
vision if they are first treated with a laser; but
whites do better with a trabeculectomy, which is a
small cut with a scalpel. According to Jack McLaughlin,
deputy director of the Institute, one reason may be
that there seems to be a difference between the two
races in how wounds heal. By age 70, 12.5 percent of
black people have glaucoma, but only two percent of
whites do.
FTC QUESTIONS PARTIALLY CLEARED
Summit Technology (BEAM, 6-3/8) and VISX (VISX, 63-7/8)
reached agreements with the FTC that prohibit the
companies from agreeing with each other on certain
issues, such as future pricing. No fines or penalties
were imposed, and there was no admission or finding of
wrongdoing. VISX and Summit may still collect per-
procedure fees. Certain FTC questions on patent issues
are still not settled, however.
SHORT TAKES
Bausch & Lomb (BOL, 48-1/16) has renewed its agreement with
Lantis Eyewear Corp., which has had the exclusive right
to sell and distribute B&L's Ray-Ban and Killer Loop
sunglasses to department stores since 1986. B&L will
also begin providing extra sales support to Lantis'
sales and marketing staff.
In other Bausch & Lomb news, Kelly Ripken, wife of
baseball player Cal Ripken, will be the company's
spokesperson in an awareness campaign for Graves' disease,
which is a thyroid eye condition. The company makes
moisture-restoring products for dry eyes experienced
by Graves' disease patients. Ms. Ripken has had
Graves' disease for 10 years; two years passed before it
was actually diagnosed.
LCA-Vision (LCAV, 3-7/16) has a new credit line
of $8 million with Provident Bank of Cincinnati,
with a more favorable interest rate than previously.
The FDA granted fast-track status to Purlytin,
the drug that Miravant (MRVT, 22-1/4) and Pharmacia
& Upjohn (PNU, 48-11/16) are testing to treat age-related
macular degeneration. Miravant said the status
helps give the drug a competitive advantage over
QLT PhotoTherapeutic's product, which is now in
Phase III clinical trials.
Serengeti (SOLRC, 15/16) was listed on the Nasdaq
SmallCap Market on June 11, but now its trading price
has fallen below the minimum $1/share requirement.
The company has received a temporary exception, to
expire October 1. Depending on whether Serengeti
meets requirements by that date, it will be listed
on either the SmallCap or the OTC Bulletin Board.
Until then, the ticker symbols will be SOLRC for
common stock and SOLWC for warrants.
Seven TLC The Laser Center (LZRCF, 16-9/16) facilities
will take part in the CRS Corneal Research Inc. IDE
for hyperopia (farsightedness) study in the United
States. Hyperopia treatment has been commercially
available at TLC's Canadian centers for more than a
year. The company is upgrading its U.S. excimer lasers
to prepare for FDA approval and estimates that 70 million
Americans are hyperopic.
Polaroid (PRD, 35-1/8) will issue a quarterly dividend
of $.15 per share on common stock to shareholders of
record on August 28, payable September 26.
Paradigm Medical Industries (PMED, 3-5/8), National
Healthcare Manufacturing, and Pharmacia & Upjohn
(PNU, 48-11/16) will co-distribute a package of products
to cataract surgeons, including surgical equipment,
intraocular lens implants, pharmaceuticals, and
sterile procedure packs. "The combined products and
services covered by this agreement are in response to
the need for improved, flexible customer support in the
cataract surgery field," commented Michael Stelzer,
Paradigm's COO.
Sunrise Technologies (SNRS, 7-15/16) completed enrollment
for its Phase III investigation for treatment of low
to moderate hyperopia, exceeding the sample size
required by the FDA. Its LTK holmium YAG laser has
treated more than 650 eyes so far, with no adverse
events, sight-threatening complications, or losses
of best corrected visual acuity.
LaserSight (LASE, 4-7/8) moved its Orlando offices
to one new location: 3300 University Blvd., Orlando,
FL 32792. The new phone and fax are (407) 678-9900
and (407) 678-9981. The St. Louis office will also
move on July 20 to: Plaza One Building, 514 Earth City
Expressway, St. Louis, MO 63045. New phone and fax:
(314) 291-4450 and (314) 291-4918.
SHOPPING NEWS
U.S. Vision (USVI, 12) will buy 11 optical centers
in Alabama, Arkansas, and Missouri from Ben Israel
Optical for an undisclosed amount in cash and stock.
Nine are in Sears stores; the other two are in medical
office buildings.
Wesley Jessen VisionCare (WJCO, 22-1/2) bought Plastic
Contact Lens Argentina S.A.I.C., a major manufacturer
of contact lenses in that country, for an undisclosed
amount. The new subsidiary, called Wesley Jessen,
S.A.I.C., will distribute WJ's specialty lens lines.
"With its developing economy and large, fashion-conscious
population, Argentina offers great potential to Wesley
Jessen," noted Kevin Ryan, president and CEO. "We now
have a platform from which to expand our specialty lens
business throughout the Mercosur common market, including
a capability to manufacture made-to-order soft torics and
other lenses."
Vision Twenty-One (EYES, 6-13/16) plans to acquire
Vision World, a 38-store chain in the Minneapolis/
St. Paul area that also has a central optical lab.
Vision World founders Russell and Takako Trenholme
will continue to operate the business, which generated
revenues of $25.8 million last year. Aggregate
consideration for the acquisition is approximately
$18.3 million in cash with a requirement that Vision
World's assets include $2.4 million in surplus cash
on the closing date.
Essilor Laboratories of America completed its
acquisition of Twin City Optical, a 15-lab company
based in Minneapolis. ELOA (part of Essilor International,
trading in Paris at 2,420 francs or about $399) said
it doesn't anticipate changes in products, services,
or staffing.
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NEW FEATURES AT OPTISTOCK.COM
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We have just added new content to our web site,
and we encourage you to access it by visiting
optistock.com, where you'll see these
new features:
"Top Performers" lists the top-performing vision
care stocks for the first half of 1998. In addition
to the overall top performers, we also list top-performing
stocks in each of five industry segments. We'll be
updating this information quarterly.
"The OptiStock Index" is a new feature we'll be
updating monthly. It's a composite index of all vision
care stocks, along with comparative indices for five
industry segments. Look for this information under
"Index by Sector."
As always, we'd appreciate your feedback on these
new features, and any comments or suggestions you'd
like to share with us.
mailto:optistock@optistock.com
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DIRECTORY OF PUBLIC COMPANIES:
CORPORATE SPONSORS
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ALLERGAN, INC. (NYSE:AGN)
A technology-driven, global health care company focused
on specialty pharmaceutical products.
mailto:corpinfo@allergan.com
allergan.com
BAUSCH & LOMB, INC. (NYSE:BOL)
A globally-focused, innovative leader in contact lenses,
lens care, sunglasses and ophthalmic pharmaceuticals.
mailto:apanzarella@bausch.com
bausch.com
KERAVISION, INC. (NASDAQ:KERA)
Developer of the KeraVision Ring, an investigational medical
device undergoing clinical trials to correct nearsightedness.
mailto:info@keravision.com
keravision.com
LUXOTTICA GROUP SPA (NYSE:LUX)
The global leader in the design, manufacturing and
marketing of quality eyewear.
mailto:luxmkgt@aol.com
luxotticagroup.com
SPECIALTY ULTRAVISION, INC. (ASE:UVC)
A marketing- and research-oriented company dedicated to
the development of specialty contact lenses.
ultravision.com
SUNRISE TECHNOLOGIES INT'L, INC. (OTC:SNRS)
Developer of laser thermal keratoplasty (LTK), a new
minimally-invasive refractive surgery technology.
mailto:rtrenary@sunrise-tech.com
sunrise-tech.com
TLC THE LASER CENTER, INC. (NASDAQ:LZRCF, TSE:LZR)
The number one provider of laser vision correction
in North America.
mailto:investor.relations@lzr.com
lzr.com
WESLEY JESSEN VISIONCARE, INC. (NASDAQ:WJCO)
The leading manufacturer of premium value
specialty contact lenses.
mailto:wgm@chi.frb.com
colorcontacts.com
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ADDITIONAL PUBLIC COMPANIES
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THE COOPER COMPANIES, INC. (NYSE:COO) and its subsidiaries
develop, manufacture and market specialty healthcare products
and services. CooperVision, Inc., markets a broad range of
contact lenses. CooperSurgical markets diagnostic and surgical
instruments and accessories for the gynecological market.
Hospital Group of America provides psychiatric services through
hospitals and satellite locations.
mailto:nbattin@usa.net
coopercos.com
AUTONOMOUS TECHNOLOGIES CORPORATION (NASDAQ:ATCI)
is engaged in the design and development of next generation
excimer laser instruments for laser refractive surgery. ATCI's
LADARVision System (formerly T-PRK System) combines high-speed,
laser radar eye tracking with controlled narrow beam shaping
technology.
mailto:investorrelations@autonomous.com
autonomous.com
ATLANTIC PHARMACEUTICALS (NASDAQ:ATLC) is a bio-pharmaceutical
company developing products for a variety of therapeutic areas.
OpTex Ophthalmologics, Inc., a subsidiary of Atlantic, is
currently developing a revolutionary new cataract removal device.
mailto:mail@atlan.com
atlan.com
1-800 CONTACTS, INC. (NASDAQ:CTAC)
Through its memorable telephone number "1-800 CONTACTS"
(1-800-266-8228), this direct marketer offers an attractive
alternative for obtaining replacement contact lenses in terms
of price, convenience, and delivery.
mailto:investors@1800contacts.com
1800contacts.com
OCULAR SCIENCES INC. (NASDAQ:OCLR) manufactures
and markets soft contact lenses for annual and disposable
replacement regimens, including the popular Biomedics line.
For fiscal 1997, revenues rose 31% to $118.6 million.
mailto:glichtwa@osah.com
or call (650) 583-1400 ext. 3416
SUMMIT TECHNOLOGY INC. (NASDAQ:BEAM)
is a leading developer, manufacturer and marketer of systems for
laser vision correction. Summit is one of two companies whose
systems are approved by the FDA to perform laser vision
correction in the U.S., and the company is benefitting from the
dramatic growth in these procedures.
mailto:erin.burke@sum-tech.com
sum-tech.com |
