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John:
Great summary. Exactly as I heard it. Logan's resolve in discussing the appeals process vs. the FTC was heartening. They certainly can afford to fight. Unfortunately, the only entity with a bigger war chest than Uncle Sam is MSFT.
Most interesting question for me on VISX is the pricing issue, which you raised. Anyone can plug in the numbers to figure out how to maximize profit over time, but in a brand new "industry", demand elasticity is unknown. I would bet that in a market driven purely by private pay like LVC, unit demand would be hugely elastic. VISX surely has run countless models on this issue, but it will be fascinating to see how they manage demand and profitability for procedures and lasers. Great thing is, with 75% market share, they can call the tune.
Charlie |
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