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Biotech / Medical : Staar Surgical STAA -- Ignore unavailable to you. Want to Upgrade?

To: Eric G. Erpenbeck who wrote (12)	12/5/1998 2:28:00 PM
From: Alan A. Hicks	Read Replies (2) \| Respond to of 50

Cruttenden analyst Bill Gibson reiterated his "Buy" in an Update dated November 23. Although Gibson cut his numbers for the fourth quarter from $0.14 to $0.05 and from $0.61 to $57 next year Gibson maintained his "Buy" based on a number of positives. These included the recent FDA marketing approval for the Toric IOL lens which will begin to impact revenues and earnings in Q1 99 and also the quick approval of Phase III Trials for the ICL. Gibson also noted STAAR completed FDA studies for its new collagen/acrylic material which will replace silicon currently being used in STAAR's IOLs. The new material is already being used in the Toric lens. Gibson believes the "potential exists for a significant acceleration in STAAR's growth rate due to sales of the ICL, AquaFlo glaucoma device and the Toric IOL. In the meantime, STAAR's core business funds the development of these new markets." Gibson also pointed to the advantages the STAAR ICL will have versus lasers which have "less pain and an operation that is reversible. Limited studies to date in the Dominican Republic indicate that patients with an ICL in one eye and a laser shaved cornea in the other prefer the ICL. For surgeons, the necessity of investing in a laser is avoided, making the procedure profitable from the first operation." Cruttenden Roth is located in Irvine, California. With FDA approval for Phase III trials for the ICL and FDA marketing approval for the Toric lens, I believe STAAR is in a much better position to begin to increase analyst coverage particularly from larger firms. Also, as ICL Phase III implants are completed by this Spring, STAAR should also be in a better position to begin getting media coverage of the new ICL. Also now that STAAR can show good progress with their new products and improving earnings comparisons ahead, STAAR is going to have a very positive story to tell to investment managers. That has not been the case the last few quarters. I think STAAR is a fabulous buy here. Patience will be rewarded.

To: Eric G. Erpenbeck who wrote (12)	3/24/1999 12:11:00 PM
From: Alan A. Hicks	Read Replies (1) \| Respond to of 50

I thought Mr. Wolf did an excellent job on the Q4 conference call. It sounds like we will have a series of positive developments that Mr. Wolf can get out to talk to Wall Street about over the next few months: 1. The new collagen based material that is used in the ICL will to be used in Staar's IOL and will begin to be sold in Europe in April. Staar has already filed for FDA marketing approval in the U.S. which could come by the end of the year. Staar's IOL has been made of silicon. While there has never been a problem with them, some competitors have an acrylic material which they have touted as superior to silicon. This, along with the Toric lens, will mark a key turning point in renewed growth of the core IOL business. Management sees sequential improvement from here. 2. The glaucoma Wick trials are going extremely well and Staar should finish the trials as soon as June. There will only be a 9 month follow-up period for the FDA. Staar expects this product could become a $200 - $300 million product. There is no good competitive treatment. 3. Phase III ICL trials for myopia are also going very well and should also be completed by June. At a similar stage of development KeraVision jumped from $6 to $11 in a few days when they announced the completion of their Phase III. On a conservative estimate for the ICL, looking at only the severe vision correction problems which lasers are unable to address, the market is estimated to be around $300 million. There are already thousands of eye surgeons around the world who have placed millions of IOL's in patients who will be eager to make the ICL part of their practice. 4. Phase III for hyperopia should begin in a few weeks. 5. The Wave phacoemulsion machine has just been introduced to the market and should begin to contribute to revenues in the second half. 6. FDA approval for StaarVisc could come at any time. It can be used in all IOL and ICL procedures. 7. The new European distributors will provide a platform for sales of the new products. 8. The Swiss manufacturing facility, where the ICL is manufactured, gives Staar a tax holiday I believe until 2003. As ICL sales increase, Staar should be able to lower its tax rate. 9. As Staar reports excellent data when they finish Phase III for the ICL and the Wick, I have no doubt Staar is going to become a very attractive takeover target from companies like VISX, Bausch & Lomb, Johnson & Johnson, Allergan and Pharmacia. 10. Staar recently got an excellent writeup from Kinnard. With more positive news coming out over the next few months, I think management can really get out and tell their story to Wall Street. Vision correction is becoming an area of increasing interest to Wall Street. I would not be surprised to see more analyst coverage for Staar. And, if takeover offers come, Staar is going to want to get there share price up first. From my perspective, while it has been a long wait, hold on tight because Staar is getting ready to rock and roll.