Company: STAA
Filing Date: 2025-09-26
Form Type: DEFA14A
Source: 0001193125-25-219844
Chunk: 20

Company: STAAR SURGICAL CO
Filing Date: 2025-09-26
Form: DEFA14A
Chunk 20
---
ignment inventory has largely mitigated the potential impact of China tariffs in the short term (through early 2026), medium and long-term global tariff risks still exist. Further, the risk of a longer-term trade war exists in an unpredictable geopolitical environment. While STAAR’s Switzerland manufacturing site should result in tariff-free (or reduced) product, it is possible that Switzerland could be caught up in a trade war. A trade war complicates STAAR’s manufacturing process as STAAR needs to balance manufacturing efficiency with tariff mitigation. As over 90% of STAAR’s Net Sales are generated outside the U.S., any backlash against U.S. companies could negatively impact sales or costs. “See fairly low impact from the geopolitical and tariff dynamics, at least in 2025, because (1) STAA does not expect to be shipping much ICL volume to China as it works down high inventory levels in the region, and (2) STAA is ramping manufacturing capacity at its Switzerland facility, which is expected to supply China EVO+ volume. That said, STAA's largest facility is based in the U.S. and a majority of the raw materials are sourced in the U.S.; therefore, we could see risk to the business beyond 2025 if the tariffs remain.” Wells Fargo 4.21.25 “Tariff impact limited, for now: In response to tariff/reciprocal tariff dynamics, STAA proactively signed consignment arrangements with Chinese distributors and shipped pallets of inventory into China ahead of implementation deadlines... As such, the company believes that it has enough inventory in China to supply local surgeons with tariff-free products until early 2026. Looking longer term, management emphasized that its Switzerland manufacturing facility is expected to receive Chinese regulatory approvals by this summer…. That said, if the Swiss facility is not able to ramp capacity quickly enough, we note that there is material downside risk to STAA's cost profile. Morgan Stanley 5.8.25 Note: Permission to use quotations neither sought nor obtained. EXECUTIVE SUMMARY | PREMIUM VALUE | STANDALONE RISKS | THOUGHTFUL EVALUATION | BROADWOOD CLAIMS

Independent analysts recognize the challenges facing STAAR “STAA’s 4Q24 results and initial 2025 outlook showed a major deterioration in the China business, driven by excess channel inventory, and a challenging China macro environment.” Jefferies 8.6.25 “STAA has struggled the past few quarters, going through a series of leadership changes combined