Gursimran Kaur

Gursimran Kaur (Wells Fargo) asked about competition in China for 2026, the ASP delta between EVO+ and EVO, and the relative contribution of price versus volume to China's 2026 growth algorithm.

Answer

Interim Co-CEO Warren Foust noted the under-penetration of refractive surgery, the differentiation of Collamer material against acrylic competitors, and encouraging early demand for EVO+ with a premium ASP, though specific figures were not disclosed.

Gursimran Kaur inquired about competition in China for 2026, the ASP delta between EVO+ and EVO in China, and the extent to which 2026 China growth will be driven by price versus volume, underlying demand, and improving macro conditions.

Answer

Warren Foust, Interim Co-CEO, President, and Chief Operating Officer, STAAR Surgical, highlighted the significant under-penetration of refractive surgery globally, especially in China, and the shift from LASIK to lens-based procedures. He emphasized STAAR's polymer differentiator and 30+ year head start. Regarding EVO+, he noted strong early excitement and a premium ASP, though the exact delta was not disclosed, and stated it's too early to quantify the price vs. volume contribution to 2026 growth.

Gursimran Kaur from Wells Fargo asked how new leadership is shaping the strategy in China and what underpins the company's confidence in the region's recovery. She also requested details on the inefficiencies targeted by U.S. cost-cutting measures and the implications for the long-term U.S. strategy.

Answer

President and COO Warren Foust highlighted that new leadership, including interim APAC Head of Strategy Wei Zhang, provides deep regional expertise. CEO Stephen Farrell cited rising procedure volumes and resolving distributor inventory as reasons for confidence in China. Regarding U.S. costs, Foust and Farrell explained the cuts are rightsizing the business to 2023 SG&A levels by addressing underutilized facilities and heavy marketing spend, while remaining committed to the U.S. market's growth.

Gursimran Kaur from Wells Fargo & Company inquired about how new leadership is shaping China strategy and the expected pace of recovery there. She also asked for specifics on the U.S. business inefficiencies that prompted recent cost-cutting measures.

Answer

President and COO Warren Foust explained that the new APAC leadership, including interim Chief Wei Zhang, provides high-level, co-located strategic oversight to capitalize on opportunities in the region. CEO Steve Farrell expressed confidence in a strong second half in China, citing rising procedure volumes and normalized inventory levels. Regarding U.S. cost cuts, Foust noted the need to right-size investments relative to the market's revenue contribution, while Farrell added that the cuts primarily address underutilized facilities and bring SG&A back to a successful 2023 run-rate level.

Gursimran Kaur, on for Larry Biegelsen, inquired about the specific drivers of softer demand in China and asked for more detail on the tariff impact, including the percentage of China sales manufactured in the U.S.

Answer

EVP and CFO Raul Parra attributed the softness to variability in the OEM business but noted the overall demand fundamentals were in line and the full-year China guidance is unchanged. He declined to provide specific manufacturing breakdowns but reiterated that 94% of the $26.3 million tariff impact is related to China, primarily from goods imported into the country.

Gursimran Kaur of Wells Fargo, on for Larry Biegelsen, asked for confirmation that WRAPSODY would be priced at a significant premium to meet the cost criteria for add-on payments. She also requested more detail on the commercial strategy, including sales force positioning and launch readiness post-FDA approval.

Answer

Executive Joseph Wright confirmed that pricing WRAPSODY at a premium is a 'fair assumption' to meet the NTAP criteria, with more details to be shared post-approval. Executive Fred Lampropoulos added that the company is actively preparing on all fronts—clinical, regulatory, reimbursement, and commercial—and will provide a comprehensive update in a virtual meeting after securing FDA approval.