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IOLTech diversifies with integration of FCI’s products
Recent merger results in broader product offering coupled with new pharmacy activity with IOLTech’s cul-de-sac delivery device, Prosert.
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LA ROCHELLE, France — Following its merger with FCI Ophthalmics during fiscal 2000, IOLTech Laboratories now occupies a diverse position in the ophthalmology market. The blending of the two companies has resulted in an ophthalmic surgical and pharmaceutical entity with new market share for IOLTech in the United States.
The combination of the two companies has resulted in an infrastructure of approximately 230 people that is expected to generate close to $26 million (FF190 million) by the end of the year, company executives say.
Brief history
Created in 1990, IOLTech was a manufacturer and distributor of ocular prostheses such as IOLs and of the medical products and instruments involved in their surgical placement. In 1998, IOLTech became a publicly traded company and built a new laboratory to produce its medical products.
After IOLTech’s initial listing on the Paris Stock Exchange, the company was looking for an external growth channel. After scrutinizing several companies, IOLTech executives decided FCI was the perfect choice. In an interview, company officials would not disclose the cost of the merger deal.
“The evolution of IOLTech in only 10 years is enormous and we progress quicker every year,” Philippe Tourrette, president of IOLTech, told Ocular Surgery News. “Although our size does not compare with the size of the U.S. multinational companies, we strive to be more flexible and more reactive than them.”
Combination
The merger with FCI provided IOLTech with several advantages, including dry eye therapies, retinal and orbital surgical capabilities, and a well-known presence in the U.S. ophthalmologic market. Prior to the merger, IOLTech had no market reach in the United States. The merger with FCI, which was completed in May 2000, has brought IOLTech not only geographical expansion, but also a widening of product offerings.
“We can create a lot of synergies between the two companies to generate a scale of savings,” Mr. Tourrette said. “FCI is a very well-known company in the field of ophthalmology, with a good image of seriousness, accuracy and professionalism. FCI brings us a supplementary turnover of about FF50 million ($6.9 million), which is a change of size for IOLTech.”
With the merger with FCI, IOLTech decided to conserve the global entity of the other company. FCI will keep its name, its staff, its sales force and its own headquarters to avoid disruption of FCI’s customers and staff. FCI has been in business since 1984 and continues to be managed by the company’s founder, Nicolas Guena.
FCI brings to IOLTech manufacturing facilities in Besancon, France, and in Mauritius. When they decide to, IOLTech will manufacture their classical model PMMA IOLs in Mauritius, an area of the world where labor costs are low, making the manufacturing process of the IOLs much cheaper than in France, according to Mr. Tourrette.
Performance
The total amount of sales for FCI last year, prior to being purchased by IOLTech, reached $7.1 million (FF51.9 million), of which About $4 million was generated in France and the remaining $3 million was generated via exported products. Since the merger, FCI has continued to increase its sales to $7.8 million.
For IOLTech, last year’s sales reached $14.4 million (FF105.1 million), $13.1 million from cataract surgery related products, about $1 million from refractive surgery product and $0.3 million from pharmaceuticals. Total sales for IOLTech have doubled in the past 3 years, and export sales have quadrupled. With the integration of FCI, company executives expect sales for fiscal year 2001 to reach FF $26 million.
Other partnerships
IOLTech has other ongoing partnerships with other leading ophthalmic companies. In 1999, IOLTech signed a deal with Bausch & Lomb for the manufacture of hydrophilic acrylic lenses for Europe. Company executives expect the turnover from this deal to reach $1.2 million for fiscal year 2000/2001.
During the same year, IOLTech entered a distribution agreement with Ursapharm to promote their eye drops with the Comod system, an airless-dispensing system pump for dispensing liquid pharmaceutical preparations. The system foregoes the need to include preservatives, since its special dispensing effectively prevents microbiological contamination of the contents of the container by refluxing air or liquid into the container. IOLTech expects revenue from this accord to reach $0.5 million this fiscal year, escalating to about $1 million next year.
In 2000, IOLTech and CIBA Vision signed a manufacturing and co-marketing arrangement concerning hard and soft refractive lenses currently under clinical evaluation. Expected turnover for the first 3 years of this contract is $6.4 million, according to executives from IOLTech.
Pharmaceuticals
Pharmaceuticals are a relatively new area for IOLTech. They entered this market with the drug delivery device Prosert. When Prosert is inserted in the conjunctival cul-de-sac, tears enter the device and saturate the mesh netting containing the active component or drug. When osmotic equilibrium is achieved, the active component is released through the membrane of Prosert and spread in the conjunctiva. Drug release is constant.
Prosert offers excellent bioavailability through long-term contact of the active ingredients with ocular tissues and controlled kinetics. No preservatives are necessary and it is easy to use, according to the company. IOLTech’s initial entry into the pharmaceutical market via Prosert came with the approval of Mydriasert, for preoperative dilation of the pupil. Its active components are tropicamide and phenylephrine. The Prosert device is under investigation with other active components to treat dry eye, glaucoma and inflammation, and for anesthetic and veterinary purposes.
New glaucoma implant
The company recently introduced the first non-absorbale glaucoma drain, T.Flux, to the European market. It derives its name from its “T” shape and is made of a highly hydrophilic acrylic. The shape and material help to drain fluid by means of capillarity and osmosis. According to studies, the T.Flux has the ability to significantly reduce IOP when used in conjunction with non-penetrating glaucoma surgery.
For Your Information:
- Philippe Tourrette can be reached at Avenue Paul Langerin, BP5, 17053 La Rochelle, Cedex 9, France; (33) 5-46-44-85-50; fax: (33) 5-46-44-85-60; e-mail: ioltech@ioltech.com.