STAAR Surgical plans $30m share buyback despite China market woes

Robert Barrie

Fri, May 16, 2025, 9:50 AM 3 min read

Shares successful STAAR Surgical jumped contiguous (16 May) aft the implantable lens developer revealed plans to bring $30m worthy of shares backmost nether ownership, a affirmative motion for the institution contempt gross struggles owed to anemic request successful China.

US-based STAAR, whose committee authorised the stock repurchase programme of outstanding communal banal today, said the timing, manner, and terms of immoderate transactions volition beryllium determined astatine its discretion. STAAR had astir 49.5 cardinal shares of communal banal outstanding arsenic of March 2025.

Shares successful the Nasdaq-listed institution roseate 5% to a terms of $19.25 astatine marketplace unfastened connected 16 May pursuing the announcement. STAAR has a marketplace headdress of $906m.

STAAR whitethorn bargain backmost stock successful the unfastened market, done privately negotiated transactions, oregon by entering structured repurchase agreements with 3rd parties.

Block purchases, which impact buying a ample fig of shares to debar marketplace terms fluctuations, could besides beryllium an avenue. STARR said that routes are alongside oregon nether Rule 10b5-1 trading plans – a regularisation that allows institution insiders to commercialized banal without violating trading laws.

STAAR stated it whitethorn modify oregon suspend the programme astatine immoderate time, though it presently plans to proceed it implicit the adjacent six months.

Buying backmost banal is simply a mode for companies with auxiliary currency to boost net per share. It besides increases the worth of remaining shares and adjusts voting rights. However, the size and quality of buybacks beryllium connected however overmuch the institution has successful reserve.

STAAR stated that the stock repurchase volition beryllium funded from currency connected manus and currency generated from operations. The institution had $222.8m to telephone upon arsenic of March 2025.

Buying backmost shares has go a fashionable inclination successful 2025 arsenic companies look to enactment up ownership stakes amid an uncertain macroeconomic climate. In the pharmaceutical industry, Sanofi is executing a $5.1bn stock buyback programme successful 2025.

“Our determination to initiate a stock repurchase programme underscores the boards and management’s assurance successful STAAR’s aboriginal and our quality to instrumentality to sustainable, profitable growth,” said STAAR Surgical’s CEO Stephen C Farrell.

STAAR struggled with gross successful 2024, posting conscionable $49m successful full-year results – a driblet from $76.3m successful 2023. During its 2024 net report, the institution blamed the “significant diminution successful China revenue” amid authorities initiatives affecting instrumentality procurement. It is an contented affecting a wide cohort of players successful the medtech industry. Philips, for example, continues to expect a subdued demand for products successful the portion this year.