UNITED STATES
`SECURITIES AND EXCHANGE COMMISSION
`WASHINGTON,D.C. 20549
`FORM 20-F
`
`(Mark One)
`REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES
`EXCHANGEACTOF 1934
`
`OR
`
`x
`
`ANNUAL REPORT PURSUANTTO SECTION13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
`OF 1934
`For the fiscal year ended
`
`DECEMBER31, 2006
`OR
`
`TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
`ACT OF 1934
`
`Forthe transition period from
`
`to
`OR
`
`SHELL COMPANY REPORT PURSUANTTO SECTION 13 OR 15(d) OF THE SECURITIES
`EXCHANGEACTOF1934
`
`Date of event requiring this shell company report
`Commission file number 001-31269
`
`
`ALCON, INC.
`
`(Exact name of Registrant as specified in its charter)
`
`ALCON, INC.
`(Translation of Registrant's name into English)
`Switzerland
`
`(Jurisdiction of incorporation or organization)
`Bosch 69
`P.O. Box 62
`
`Hiinenberg, Switzerland
`(Addressofprincipal executive offices)
`
`Securities registered or to be registered pursuant to Section 12(b) of the Act.
`Title of each class
`Nameof each exchange on which registered
`CommonShares, par value CHF 0.20 per share
`The New York Stock Exchange
`
`None
`Securities registered or to be registered pursuant to Section 12(g) of the Act.
`None
`Securities for which there is a reporting obligation pursuant to Section 15(d) ofthe Act.
`Indicate the number of outstanding shares of each ofthe issuer's classes of capital or commonstock as of the
`close of the period covered by the annualreport.
`301,182,404 Common Shares
`Indicate by check mark if the registrant is a well-known seasonedissuer, as defined in Rule 405 of the Securities
`Act.
`
`No
`|
`Yes
`xX
`If this report is an annual ortransition report, indicate by check markif the registrant is not required to file
`reports pursuant to Section 13 or 15(d) ofthe Securities Exchange Act of 1934.
`Yes
`x
`
`No
`
`Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of
`the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periodthat the
`registrant was requiredto file such reports), and (2) has been subject to such filing requirements for the past 90
`days.
`
`No
`|
`Yes
`Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated
`filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check
`one)
`Non-accelerated Filer [|
`[|
`Accelerated Filer
`[x]
`Large Accelerated Filer
`Indicate by check mark whichfinancial statement item the registrant has elected to follow.
`Item 17[x|Item 18
`If this report is an annual report, indicate by check mark whether the registrant is a shell company (as defined in
`Rule 12b-2 ofthe Exchange Act).
`rx]
`Ye
`
`
`ALCON 2061
`Argentum Pharm. LLC v. Alcon Research, Ltd.
`Case IPR2017-01053
`
`

`

`therapeutic categories.
`
`Sales ofproducts for treatment of infections and inflammation increased 14.5% during the year ended
`December 31, 2006. This increase reflected the first full year’s sales ofNEVANAC® ophthalmic preparation since
`its introduction in September 2005,globalsales growth of TobraDex® ophthalmic suspension andointment, and
`higher sales of the Vigamox® ophthalmic solution.
`
`Sales of Vigamox®, our newestanti-infective drug, increased 27.1%, primarily due to increased sales in the
`United States as physicians continued to convert to it from older anti-infectives. In 2006, we marketed this
`fluoroquinolone drug in approximately 40 countries around the world. In July 2006, the Japanese Ministry of
`Health, Labor and Welfare approved Vegamox™ moxifloxacin solution (known in other markets as Vigamox®)
`for the treatmentofbacterial infections of the eye.
`The approval and the October 2006 commercial launch of Vegamox™ in Japan were important achievements;
`however,the impact of the launch onsales in 2006 was negligible. (Vigamox® and Vegamox™ are licensed to
`Alcon by Bayer Healthcare AG.)
`
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`The U.S. commercial launch ofNEVANAC® ophthalmic solution began in September 2005. NEVANAC® is
`the first ophthalmic non-steroidal anti-inflammatory drug ("NSAID") to receive FDA approval for the treatment
`ofpain and inflammationassociated with cataract surgery. In the timesinceits introduction, NEVANAC® has
`captured approximately 22% ofits therapeutic market in the United States during December 2006, according to
`the Wolters Kluwer Health Service Prescription Audit.
`
`Our line ofglaucomaproducts continued to show sales growth. Sales of TRAVATAN® ophthalmic solution,
`our prostaglandin analogue, grew 17.2% for the year ended December 31, 2006. Earlier in 2006, the Company
`began providing its TRAVATAN™ Dosing Aid to a targeted group of physicians. This device is provided
`without charge to help physicians and their patients improve compliance with prescribed dosage regimens. In
`2006, TRAVATAN® was sold in more than 100 markets. During the same period, Azopt® ophthalmic suspension,
`the Company's topical carbonic anhydrase inhibitor (TCAT), posted a 16.7% sales increase from growth in both
`the U.S. and International markets.
`
`In September 2006, the FDA approved TRAVATAN®Z™ ophthalmic solution for the treatment of glaucoma
`for patients whoareintolerantor insufficiently responsive to other intraocular pressure-lowering medications.
`TRAVATAN®Z™ enables doctors to help glaucoma patients with a benzalkonium chloride ("BAC") free
`prostaglandin. The commercial launch of TRAVATAN®Z™ began in October 2006.
`
`Global sales ofour key allergy product, Patanol® ophthalmic solution, grew 9.1% in the year ended
`December 31, 2006. U.S.sales of.Patanol® increased 4.2% in the year ended December 31, 2006 over 2005,
`despite increased competitive product offerings and sampling. Sold in Europe as Opatanol® ophthalmic
`solution, Patanol® generated International sales representing a 47.0% increase over 2005. Sales growth in
`existing Alcon International markets was responsible for a major portion of the International growth along with
`the introduction ofPatano/® in new countries. In July 2006, the Japanese Ministry ofHealth, Labor and Welfare
`gave approval to market Patanol® in Japan, the secondlargestocular allergy marketin the world. The
`Company's commercial launch ofPatano/® in Japan began in September 2006. Patanol® was sold in more than
`85 countries in 2006.
`
`Sales of otic products increased 10.1%, despite slower market growth for this category. U.S.sales of
`CIPRODEX® otic suspension were responsible for the increase in otic products sales during 2006. CIPRODEX®
`otic is approved for treatment of middle ear infections in children with ear tubes and outer ear infections.
`(CIPRODEX® is a registered trademark ofBayer AG,licensed to Alcon by Bayer Healthcare AG.)
`
`The changein the other pharmaceuticals/rebates line in the year ended December 31, 2006 compared to 2005
`was due primarily to a significant decline in the Company's rebates relating to the Federal Medicaid program. The
`decline in Medicaid rebates has been partially offset by an increase in rebates related to the Federal Medicare
`Part D program, which began January 1, 2006. Rebates have been estimated and accrued in the quarter in which
`the related sales have been recorded. Rebates related to the Federal Medicare Part D program have been applied
`to the sales within the various productline categories when paid, while rebates for Federal Medicaid programs
`historically have not. Consequently, sales of the various productline categories also reflect reductions for the
`shift in the rebate types.
`
`

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`Surgical
`
`Global sales of our surgical products grew 9.3% (9.2% in constant currency) to $2,203.8 million in the year
`ended December 31, 2006. Intraocular lenses and cataract and vitreoretinal products (which include surgical
`equipment, devices and disposable products) provided this growth, which was offset by decreased sales of our
`refractive products.
`
`Sales of intraocular lenses increased 15.2% in the year ended December 31, 2006. This increase reflected
`continued growth in the market and in our market share, as well as the conversion from lower-pricedAcrySof®
`lenses to premium-priced products, such as the AcrySof® Naturalintraocular lens, the AcrySof® IO aspheric
`intraocular lens and the AcrySof® ReSTOR® multifocal intraocular lens.
`
`The AcrySof® ZQ intraocular lens is an aspheric lens that is designed to reduce corneal spherical aberration.
`Ophthalmic experts believe that uncorrected corneal spherical aberrations reduce visual function. After
`submitting clinical data on this lens to the Centers for Medicare and Medicaid Services, effective May 19, 2006,
`this agency recognized the AcrySof® JQ intraocular lens as belonging to the New Technology Intraocular Lens
`("NTIOL")classification defined by Reduced Spherical Aberration. This NTIOL designation increases the
`Medicare payment to ambulatory surgery centers for cataract surgery by
`
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`$50 when surgery is performed with anAcrySof® IQ intraocular lens. This NTIOLsubset and adjusted payment
`for the AcrySof® ZQ intraocular lens will remain in effect until February 27, 2011.
`
`The AcrySof® ReSTOR® lens was approved by the FDAin late March 2005. The AcrySof® ReSTOR® lens
`uses a proprietary apodized diffractive refractive technology to give patients a full range of quality vision (near,
`intermediate and distance) that greatly increases their independence from glasses after surgery. Largely due to
`its U.S. launch in May 2005,global sales ofAcrySof® ReSTOR® grew to $102.2 million in the year ended
`December 31, 2006, compared to $54.2 million for the year ended December 31, 2005.
`
`Sales of cataract procedure packs increased 9.4%, while sales of viscoelastics and cataract equipment grew
`8.1% and 2.8%, respectively. Sales of vitreoretinal surgical disposables rose 14.1% and, along with a 9.4%
`increase in vitreoretinal surgical equipment sales, produced a 12.0% increasein vitreoretinal productsales.
`
`Refractive sales declined 8.0% for the year ended December 31, 2006. Refractive technology fees declined by
`13.8% andsales ofrefractive equipment declined in 2006 compared to 2005 as sales ofthe LADARWave®
`wavefront system declined.
`
`Earlier in 2006, the FDA concluded its inspection of our refractive surgical equipment operation as part ofthe
`processto clear an outstanding FDA warning letter related to its complaint handling process. All items in the
`warning letter have been cleared, followed by receipt of four approvals for Pre-Market Approval Supplements in
`the second quarter of 2006. These four approvalsrelated to applications for the LADAR6000™ excimer laser and
`new CustomCornea® wavefrontsystem indications for use, including hyperopia with/without astigmatism and
`mixedastigmatism.
`
`Consumer Eye Care
`
`Our global consumer eye care sales, consisting of contact lens care, artificial tears and other general eye care
`products, grew 17.4% (16.8% in constant currency) to $685.6 million in the year ended December 31, 2006.
`
`Sales of our contact lens disinfectants increased 26.7% in the year ended December 31, 2006 compared to
`2005. Sales growth of our contactlens disinfectants reflected our success in gaining market share after a major
`competitor withdrew oneofits leading products from the market during the second quarter of 2006. The
`withdrawal created a surge in demandfor alternate products as retailers and consumers replaced their existing
`supply of the competitor's disinfectants. Since our competitor's recall, we have maintained most of the market
`share we gained as evidenced by our 38% share of the U.S. contact lens disinfectants market in December,
`compared to 29% in March 2006, according to ACNielson ScanTrack. Also contributing to the sales increase was
`the launch of OPTI-FREE® RepleniSH® multipurpose disinfecting solution in the UnitedStatesin thefirst
`quarter of 2006.
`
`Sales ofour artificial tears products grew 17.3% over the sameperiod. Higher sales ofSystane® lubricant eye
`
`