Company: STAA
Filing Date: 2025-09-26
Form Type: DEFA14A
Source: 0001193125-25-219844
Chunk: 17

Company: STAAR SURGICAL CO
Filing Date: 2025-09-26
Form: DEFA14A
Chunk 17
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 benefits with its proprietary Collamer material, STAAR has largely been ineffective diversifying beyond ICLs through new product introductions. STAAR only sells ICLs and related injectors. As STAAR depends on EVO and EVO+ ICL products for nearly all of its Net Sales, disruptions to its EVO and EVO+ ICL business put the company at substantial risk. While it has invested an average ~15% of Net Sales in R&D over the last ten years, the company has not been able to diversify beyond ICLs. The most recent new product launch, EVO Viva for myopia and presbyopia correction, was not a commercial success. ICL Net Sales Since Launch (2014) Approximate % of Total Net Sales $ in millions Reflects management projections in the definitive proxy. Reflects a burn down of distributor inventory. (1) EXECUTIVE SUMMARY | PREMIUM VALUE | STANDALONE RISKS | THOUGHTFUL EVALUATION | BROADWOOD CLAIMS

Increasing competition in China is expected to drive downward pricing pressure and could lead to the introduction of volume-based procurement, which will be difficult to navigate with STAAR’s limited product offering Significant price reduction (e.g., ~60% average price cut for national VBP for intraocular lenses(1)) Price reduction drives need to further cut costs and optimize expense structure, while at the same time additional resources required to facilitate responses to tenders Maintaining margin requires further changes to business model and go-to-market strategy (e.g., localization, partnership with local players) To offset Net Sales shortfall from VBP products, STAAR must accelerate product portfolio expansion with new product introductions and R&D, which has been difficult With increasing competition, the overall risk of pricing pressure grows, and introduces volume-based procurement (VBP) as a new risk. VBP and local preference policies that enable China-based brands to gain share could create long-term headwinds for STAAR as a U.S. company. Pricing pressure can lead to lower Net Sales, margins, and profitability, and can negatively impact cash flows. VBP is a government-led healthcare reform with the goal of improving affordability and accessibility by awarding large volume sales to tender winners. While VBP traditionally focused on mature products that are government-reimbursed, VBP has since expanded to cash-pay products (such as dental implants) and could expand further into innovative devices like phakic IOLs given increasing competition. Potential Impact from VBP Source