STAAR, Broadwood reach cooperation agreement, restructure board after terminated Alcon deal

After the termination of the proposed acquisition by Alcon, STAAR has announced changes to its board of directors in a cooperation agreement with Broadwood Partners.¹

Broadwood Partners and its affiliates are the largest private stockholders in STAAR, owning 31% of STAAR’s outstanding common stock. Since the proposed deal between Alcon and STAAR was announced in August 2025, Broadwood has steadily opposed the merger and adamantly claimed the sale was being done at the wrong time and price, as well as the process having major flaws.

Under the original terms of the agreement,² Alcon would purchase all outstanding shares of STAAR common stock for $28 per share in cash. Those outstanding shares represented approximately a 59% premium to STAAR’s 90-day volume-weighted average price and a 51% premium to the closing price of STAAR common stock on August 4, 2025. According to the company, this transaction represents a total equity value of approximately $1.5 billion.

This was later changed³ to $30.75 per share in cash, an increase from the original $28 per share. According to Alcon, this would provide stockholders with an additional $150 million in equity value. This would represent a 74% premium to STAAR’s 90-day volume weighted average price (VWAP) and a 66% premium to the closing price of STAAR common stock on August 4, 2025, up from the original 59% and 51% premiums, respectively.

Even with the change, the deal was terminated at the start of 2026.⁴ At the time of termination, neither STAAR nor Broadwood would comment on future plans for the company. Previously, Broadwood called for the removal of 3 STAAR directors,⁵ stating, “We continue to believe that shareholder confidence in the board can be restored only by removing directors.” Both Elizabeth Yeu, MD, and Stephen Farrell, CEO of STAAR, were mentioned by name as removals requested by Broadwood. Yeu was named due to previous partnerships with Alcon, and Farrell because Broadwood claimed he “[stood to] make $24 million from the sale of STAAR after just 5 months in his role.”

Arthur Butcher, the board’s Compensation Committee Chair, was also mentioned at the time for “[approving] egregious exit compensation packages for executives in conjunction with the transaction.”

With the recently announced board member changes, it appears Broadwood succeeded in its request,⁵ as both Yeu and Farrell will be stepping down as members of the board. Butcher will remain on the board, and Farrell will remain the CEO of STAAR through January 31, 2026. STAAR and Broadwood did not announce a new CEO at the time.

In addition to the loss of members, Neal C. Bradsher and Richard T. LeBuhn of Broadwood and Christopher Wang of Yunqi Capital will be joining the board effective immediately. Yunqi Capital supported Broadwood in its fight against the merger.

Louis Silverman, STAAR director, commented on the changes, saying, “We welcome our new Board members, who bring to STAAR expertise with respect to relevant public market investments, healthcare, and business in China, as well as the perspectives of long-term investors and supporters of STAAR. We will work together to enhance profitability and drive sustainable, long-term value creation. We are grateful to Liz and Steve for their service on STAAR’s Board, and we appreciate Steve’s leadership as CEO. We wish them both well.”

Neal C. Bradsher, Broadwood founder and president and newest member of the STAAR board, added, “I am honored to join STAAR’s Board. The company’s leading technology, strong financial position, and privileged market position provide it with the opportunity to achieve growth and profit margin expansion. As STAAR’s largest shareholder, Broadwood is committed to helping the company realize its full potential. I want to thank Liz Yeu for her early recognition of the advantages of the ICL over tissue removal refractive procedures. I want to thank Steve Farrell for leading STAAR out of a difficult situation in early 2025 and back to profitability and cash flow generation.”

Bradsher also commented on future work with Butcher; a member requested to be dismissed previously, saying, “I look forward to working with Art Butcher, an accomplished senior executive of one of the world’s most successful medical device companies, as well as my other new colleagues on the STAAR Board. I believe that the exit compensation package provided to Steve by the prior board was appropriate based on the conditions at the time.”

STAAR announced that the cooperation agreement with Broadwood will be filed by the company with the US Securities and Exchange Commission as an exhibit to the Current Report on Form 8-K.

References:

1. STAAR Surgical and Broadwood Partners Enter Into Cooperation Agreement. Published January 15, 2026. Accessed January 16, 2026. https://investors.staar.com/news-and-events/press-releases/2026/01-15-2026-133045807

2. Harp MD. Alcon agrees to acquire STAAR Surgical. Published August 5, 2025. Accessed January 16, 2026. https://www.ophthalmologytimes.com/view/alcon-agrees-to-acquire-staar-surgical

3. Harp MD. Alcon raises offer in amended deal to acquire STAAR Surgical. Published December 10, 2025. Accessed January 16, 2026. https://www.ophthalmologytimes.com/view/alcon-raises-offer-in-amended-deal-to-acquire-staar-surgical

4. Harp MD. STAAR Surgical terminates proposed acquisition by Alcon. Published January 6, 2026. Accessed January 16, 2026. https://www.ophthalmologytimes.com/view/staar-surgical-terminates-proposed-acquisition-by-alcon

5. Harp MD. UPDATE: STAAR postpones Alcon merger vote, Broadwood calls for removal of board members. Published October 28, 2025. Accessed January 16, 2026. https://www.ophthalmologytimes.com/view/staar-postpones-alcon-merger-vote-broadwood-calls-for-removal-of-board-members