Company: STAA
Filing Date: 2025-10-02
Form Type: DFAN14A
Source: 0001213900-25-095514
Chunk: 12

Company: STAAR SURGICAL CO
Filing Date: 2025-10-02
Form: DFAN14A
Chunk 12
---
 the Company’s distributors in China was significantly elevated 2 ▪ As a result of the excess inventory, STAAR effectively halted new sales into China during the first half of 2025 as the Company worked through the excess inventory — Accordingly, STAAR slashed its net sales outlook for China – its largest market – in the first half of 2025 ▪ STAAR’s stock fell by approximately 25% the next trading day and continued to decline by at least 3% in each of the two days thereafter 4 ▪ Sell - side analysts also reacted negatively to the sudden change in near - term outlook, reducing their price targets and ratings on STAAR — In the week following STAAR’s Q4 2024 earnings release, the mean analyst price target declined by 53% 4 — The percentage of analysts with “Buy” or “Overweight” ratings declined from 54% to 23% 4 ▪ Approximately two weeks after reporting Q4 2024 earnings, the Company announced a leadership transition — The Board’s Lead Independent Director, Stephen Farrell, replaced Tom Frinzi as President and CEO, effective immediately ▪ The Company also announced that Dr. Elizabeth Yeu, who has served as a member of the Board since 2021, was elected Chair of the Board $21.88 $39.41 $16.63 $18.67 Stock Price Mean Analyst Price Target Feb. 11, 2025 Feb. 18, 2025 $102M $5M 1H24³ Initial 1H25 Guidance² ICL Sales in China ($M) The building blocks for STAAR’s success are in place … [W]e are well positioned to deliver strong returns as the refractive surgery market stabilizes and resumes its historic growth.” STAAR Dramatically Reduced Its Outlook for Sales in China in 1H 2025 The Stock Price Declined and Analysts Cut Their Price Targets The Board Initiated a CEO and Board Leadership Transition A

Broadwood Partners, L.P. As a Result of These Challenges, STAAR’s Financial Results Have Temporarily Deteriorated 18 Transitory demand and inventory challenges have negatively impacted STAAR’s revenue and profitability Source: STAAR Annual and Quarterly Reports on Form 10 - K and 10 - Q, respectively. 4 Temporary Headwinds $326 $333 $341 $314 $279 $224 1Q24 2Q24 3Q24 4Q24 1Q25 2Q