Well, that didn't work out. Shares of LENSAR Inc. (LNSR) are getting hammered Tuesday after its would-be acquirer, eye care giant Alcon AG (ALC), called off their merger. The reason? A regulatory review that dragged on for nearly a year and, ultimately, opposition from the Federal Trade Commission.
Back in March 2025, Alcon agreed to buy the laser solutions company for $14.00 per share, a deal that valued LENSAR at about $356 million. The idea was to boost Alcon's offerings in the cataract surgery space. But as of today, that idea is officially dead.
Alcon announced it has mutually agreed with LENSAR to terminate the merger agreement. In a statement, Alcon CEO David Endicott laid out the rationale clearly: "Alcon continues to believe that the acquisition of LENSAR would have significantly enhanced FLACS innovation and competition to the benefit of surgeons and patients. However, the delay and associated costs of this extended regulatory review, which began nearly a year ago, has rendered the transaction unattractive to pursue further in light of the Federal Trade Commission's opposition."
In other words, the regulatory hassle just got to be too much. When a government agency signals it's going to fight you, sometimes the smartest move is to just walk away, even if you think the deal makes business sense.
This isn't the first time Alcon has struck out on the M&A front recently. Just a couple of months ago, in January, STAAR Surgical Company (STAA) shareholders voted down a proposed merger with Alcon. A major investor, Broadwood Partners, which owns a 30.2% stake in STAAR, was a vocal opponent of that deal. So for Alcon, it's been a rough patch for its expansion plans.
For LENSAR, the fallout is immediate and painful. The stock was down 25.44% at $7.65 in premarket trading, hitting a new 52-week low. A quick look at the technicals shows just how rough it's been. The stock is currently trading 32.5% below its 20-day simple moving average and 34.8% below its 100-day simple moving average. Over the past year, shares have fallen 34.15%.
The momentum indicators paint a mixed but generally weak picture. The Relative Strength Index (RSI) sits at 30.83, which is considered neutral—not yet in oversold territory. However, the MACD indicator shows a value of -0.3091, which is below its signal line of -0.1204, suggesting bearish pressure remains. Analysts watching the chart might point to $9.00 as a key resistance level and $7.00 as a key support level to watch.
Market data also shows LENSAR with a very low momentum score of 9.51, indicating it is significantly underperforming the broader market. The verdict from the data is clear: LENSAR faces serious challenges as it navigates the market alone again, without the promised buyout premium.
