- Due to uncertainty around impact of COVID-19, previous 2020
guidance is withdrawn
- In lieu of attendance at the Annual General Meeting, Alcon
shareholders are directed to exercise voting rights exclusively via
independent representative
- To maintain financial flexibility, company is implementing
cash preservation measures which includes delaying initiation of a
dividend proposal until 2021
- Alcon Foundation is supporting relief efforts and donating
supplies to help those impacted by global pandemic
Regulatory News:
Alcon (SIX/NYSE: ALC), the global leader in eye care dedicated
to helping people see brilliantly, today announced a series of
updates stemming from the impact of COVID-19.
First and foremost, Alcon’s top priority is protecting the
safety of its associates and the communities it serves. As a
result, the company has initiated business continuity plans
designed to keep its associates and customers safe while continuing
to deliver critical eye care needs for the global healthcare
community. These plans include directing all Alcon office-based
associates to work from home and not travel. In manufacturing
facilities, the company is limiting the number of people in one
area at a time, modifying workstation arrangements and minimizing
the cross flow of people between shifts to reduce potential
exposure, along with enhanced cleaning and sanitization.
2020 Guidance
Alcon today announced it is withdrawing its full year 2020
guidance previously disclosed on February 25, 2020.
Most countries and local municipalities have mandated or advised
unprecedented measures to help contain the spread of COVID-19.
These measures, which have necessitated a temporary deferral of eye
care procedures and exams in many markets, are anticipated to have
an impact on Alcon’s financial results. The extent of this impact
will depend on the duration of the pandemic, timing of global
recovery and normalization of customers’ practices. Due to the
challenges in forecasting the duration of the pandemic, Alcon is
unable to estimate the overall ongoing impact on its financial
results. The company plans to provide additional details in its
first quarter earnings call scheduled for May 13, 2020.
Annual General Meeting and Withdrawal of Dividend
Proposal
Alcon’s Board of Directors announced the company will hold its
first Annual General Meeting on Wednesday, May 6, 2020, without the
attendance of shareholders and published its invitation for
shareholders in the Swiss Gazette of Commerce.
Due to restrictions banning all public and private events in
Switzerland as a result of the coronavirus outbreak, the Board of
Directors is directing shareholders to send their voting
instructions to the independent representative, Hartmann Dreyer
Attorneys-at-Law. Shareholders will not be granted access to the
meeting room on the day of the meeting.
Alcon’s Board of Directors has also revised the proposals for
the meeting. In February, the Board proposed a dividend of CHF 0.19
per share for 2019. In light of the current market conditions and
economic uncertainties linked to COVID-19, and as part of the
company’s overall efforts to maintain financial flexibility and
implement cash preservation measures, the Board of Directors
considers that it is in the best interest of Alcon's stakeholders
to delay the initiation of a dividend proposal until 2021. As a
result, the dividend proposal has been withdrawn and the remaining
amount of available earnings, after allocation to the general
reserve, shall be carried forward.
The invitation, including agenda, proposals of the Board of
Directors and other meeting materials covering the COVID-19
situation and the withdrawal of the dividend proposal, will soon be
mailed directly to shareholders entered in the company’s share
register with the right to vote as of the record date of April 27,
2020. The meeting materials will soon be available electronically
for information purposes on
https://investor.alcon.com/news-and-events/events-and-presentations/event-details/2020/2020-Annual-General-Meeting/default.aspx.
Alcon regrets the unusual circumstances of the 2020 Annual
General Meeting and hopes to return to a standard agenda next
year.
COVID-19 Support Efforts
Alcon is responding by supporting charitable partners that are
serving the most vulnerable populations affected by the outbreak.
The Alcon Foundation has reallocated funds and made monetary
donations to local, national and global organizations to support
meal programs for children and seniors, provide essential supplies
to shelters and aid public health emergency relief efforts.
As the public health emergency has grown in scale, Alcon has
ramped up its efforts to donate personal protective equipment
(PPE), while also producing additional PPE and hand sanitizers for
relief efforts. Alcon will continue to explore additional measures
to support organizations fighting to stem this pandemic.
Forward-looking
Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as: “anticipate,”
“intend,” “commitment,” “look forward,” “maintain,” “plan,” “goal,”
“seek,” “believe,” “project,” “estimate,” “expect,” “strategy,”
“future,” “likely,” “may,” “should,” “will” and similar references
to future periods.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
Alcon’s current beliefs, expectations and assumptions regarding the
future of its business, future plans and strategies, and other
future conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties and risks that
are difficult to predict. Such forward-looking statements are
subject to various risks and uncertainties facing Alcon, including:
the impact of the COVID-19 pandemic on its operations and financial
results, including the policies and actions taken by governments or
other third parties; the commercial success of its products and its
ability to maintain and strengthen its position in its markets; the
success of its research and development efforts, including its
ability to innovate to compete effectively; its success in
completing and integrating strategic acquisitions; pricing pressure
from changes in third party payor coverage and reimbursement
methodologies; global and regional economic, financial, legal, tax,
political, and social change; the ability to obtain regulatory
clearance and approval of its products as well as compliance with
any post-approval obligations, including quality control of its
manufacturing; ongoing industry consolidation; its ability to
properly educate and train healthcare providers on its products;
changes in inventory levels or buying patterns of its customers;
its reliance on sole or limited sources of supply; ability to
service its debt obligations; the need for additional financing
through the issuance of debt or equity; its reliance on outsourcing
key business functions; its ability to protect its intellectual
property; the impact on unauthorized importation of its products
from countries with lower prices to countries with higher prices;
the effects of litigation, including product liability lawsuits;
its ability to comply with all laws to which it may be subject;
effect of product recalls or voluntary market withdrawals; data
breaches; the implementation of its enterprise resource planning
system; its ability to attract and retain qualified personnel; the
accuracy of its accounting estimates and assumptions, including
pension plan obligations and the carrying value of intangible
assets; legislative and regulatory reform; the ability of Alcon
Pharmaceuticals Ltd. to comply with its investment tax incentive
agreement with the Swiss State Secretariat for Economic Affairs in
Switzerland and the Canton of Fribourg, Switzerland; its ability to
operate as a stand-alone company; whether the transitional services
Novartis has agreed to provide Alcon are sufficient; the impact of
being listed on two stock exchanges; the ability to declare and pay
dividends; the different rights afforded to its shareholders as a
Swiss corporation compared to a US corporation; and the effect of
maintaining or losing its foreign private issuer status under US
securities laws. Additional factors are discussed in Alcon’s
filings with the United States Securities and Exchange Commission,
including its Form 20-F. Should one or more of these uncertainties
or risks materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those
anticipated. Therefore, you should not rely on any of these
forward-looking statements.
Forward-looking statements in this press release speak only as
of the date of its filing, and Alcon assumes no obligation to
update forward-looking statements as a result of new information,
future events or otherwise.
About Alcon
Alcon helps people see brilliantly. As the global leader in eye
care with a heritage spanning more than seven decades, we offer the
broadest portfolio of products to enhance sight and improve
people’s lives. Our Surgical and Vision Care products touch the
lives of more than 260 million people in over 140 countries each
year living with conditions like cataracts, glaucoma, retinal
diseases and refractive errors. Our more than 20,000 associates are
enhancing the quality of life through innovative products,
partnerships with eye care professionals and programs that advance
access to quality eye care. Learn more at www.alcon.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200406005908/en/
Investor Relations Christina
Cheng + 41 589 112 110 (Geneva) + 1 817 615 2789 (Fort Worth)
investor.relations@alcon.com Media
Relations Wes Warnock + 41 589 112 111 (Geneva) + 1 817
615 2501 (Fort Worth) globalmedia.relations@alcon.com
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