Company: STAA
Filing Date: 2025-10-21
Form Type: PX14A6G
Source: 0001193125-25-244217
Chunk: 5

Company: STAAR SURGICAL CO
Filing Date: 2025-10-21
Form: PX14A6G
Chunk 5
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 strength, initiate a disciplined strategic alternatives review.

In preparation for and in conjunction with such a process, the Board could advance a number of strategic initiatives that would strengthen STAAR’s
business fundamentals. This includes the recommendations that we have previously detailed for the Company about the significant opportunities we see in China, the Company’s largest market. For example, we are confident the Company can
capitalize on the positive momentum of its ICL technology and its improving position in China, even amid macroeconomic headwinds. As market conditions normalize, we believe the ICL franchise is well-positioned to emerge stronger, driving meaningful
value creation.

In addition, we would urge STAAR to immediately launch its Evo Plus V5 lenses in China, as we believe there will be strong demand for
this product, which could provide an additional growth driver as the Company builds on its positive momentum heading into 2026.

The post-meeting Company
should also work to enhance transparency and reporting quality. Reported revenues can be distorted by inventory fluctuations in distribution channels, as seen in prior quarters. A clearer assessment of business health depends on ICL surgery volumes
and average selling prices, data currently available only through third-party sources such as IQVIA and distributor surveys. We encourage STAAR to begin disclosing these metrics – historic and current – alongside total refractive-surgery
volumes. More transparency would clarify regional performance and rebuild investor confidence. Our diligence suggests mid-single-digit ICL-surgery growth (~5%) in 2025,
an encouraging sign of sustained underlying demand.

We would also highlight that STAAR’s third quarter net sales exceeded consensus by 2.8%, which
means that if the Alcon proposal is rejected, and with proper disclosure on its current financial performance, it is likely that we would see a significant upgrade in both the 2026E sales as well as its EBITDA. We are confident this would help to
alleviate potential volatility if the Alcon deal is voted down.

Finally, the Company should focus on strengthening its distribution economics,
particularly in China. We urge the Board to prioritize restructuring STAAR China’s distribution model, ideally overseen by a director with medical-industry experience in the region. As noted in our prior communications, aligning channel
margins and operating costs with U.S. benchmarks could unlock substantial financial upside. Incorporating these improvements into analyst expectations would support stronger valuations and deliver greater shareholder returns in any future strategic
process.

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While we have our differences with certain members of the