Lasik surgery is a surgical procedure to correct vision.
Because laser vision correction is not covered by Medicare, Medicaid, or most private insurance plans, consumers must pay directly out of pocket for such surgeries. As a result, demand for LASIK tends to be heavily correlated with economic conditions, especially in the U.S. A weak or uncertain economy can decrease sales in the laser vision correction division.[1] Furthermore, concerns about the safety of LASIK procedures have increased over the last few years. Some studies have found that as many as 18% of LASIK patients need retreatment. [2] The negative publicity resulting from such findings, as well as media coverage of individual negative experiences with LASIK add another downward pull to already weakened demand. Consequently, laser vision correction has been a flat market for the past few years, with roughly the same number of LASIK procedures performed each year (see chart below).
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Investing in the success of LASIK procedures
A number of companies make LASIK surgery equipment, which they sell to doctors who then charge patients to perform the procedure.
- Advanced Medical Optics (EYE) makes equipment for laser vision correction, along with medical devices for cataract surgery and contact lens solution. Laser Vision Correction accounted for 22% of the company's sales in 2006, and over a third of its revenue in 2007.[4]
- Bausch & Lomb (BOL) Is the larges seller of LASIK equipment. However, the company is no longer publicly traded, having been purchase by private equity firm Warburg Pincus in 2007.
References
- ↑ AMO 2006 10-K, Item 1: Business, page 21
- ↑ "Lasik has 10% failure rate"
- ↑ TLC Vision 2006 10-K, Item 1: Business, page 5
- ↑ New York Times article on slowdown in Lasik surgery with slowing economy
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