You could certainly argue that leading eye-care company Alcon
Revenue rose about 12% this time around, and that was more or less as expected. And while the improvement in operating income (37% as reported) looks gaudy at first blush, a sizable chunk of that growth came from a reserve reversal tied to litigation with competitor Advanced Medical Optics
That's not to say that there wasn't some good performance at Alcon. New glaucoma drugs continue to perform quite well, and the company's ReSTOR intraocular lens seems to be off to a good start. In the consumer business, Alcon is certainly benefiting from Bausch & Lomb's
I've griped about Alcon's valuation before, and I'm more than happy to do it again. Alcon is certainly a great company in an under-appreciated market. It's also a "partner of choice" for companies like Amgen
But none of that tells me why I should pay such a rich premium relative to growing high-quality pharmaceutical names like Novartis
If and/or when I ever get the chance to grab these shares at a reasonable discount to fair value, that'll be a happy day for me. In the meantime, I'll just observe today's eye-popping run-up from the sidelines.
For more Foolish medical missives:
- Novartis Pays for Its Shopping Spree
- Alcon Still Not Living Up to Valuation
- A Little Sand in the EYE
Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).