Alcon's (ALC, Financial) results were challenged by hospital and surgery center shutdowns, more so than our other medical technology holding, Edwards Lifesciences, because eye surgeries are less life-threatening than structural heart problems. However, Alcon has a robust pipeline of new products that should restore the Company's growth profile over the next few quarters. In addition, Alcon should be able to deliver steady margin expansion from a combination of higher valued products as well as better leverage from the Company's fixed cost structure as the operational separation from Novartis is substantially completed.
From David Rolfe (Trades, Portfolio)'s Wedgewood Funds third-quarter 2020 shareholder letter.
Also check out:
