UNITED STATES
`SECURITIES AND EXCHANGE COMMISSION
`WASHINGTON, D.C. 20549
`FORM 20—F
`
`(Mark One)
`REGISTRATION STATEMENT PURSUANT TO SECTION 12(1)) 0R (g) OF THE SECURITIES
`EXCHANGE ACT OF 1934
`
`OR
`
`X
`
`ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
`OF 1934
`
`For the fiscal year ended
`
`DECEMBER 312 2006
`OR
`
`TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF TIE SECURITIES EXCHANGE
`ACT OF 1934
`
`For the transition period from
`
`to
`OR
`
`SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
`EXCHANGE ACT OF 1934
`
`Date of event requiring this shell company report
`Commission file number 004-31269
`
`
`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)
`Bfisch 69
`RD. Box 62
`
`Hiinenberg, Switzerland
`(Address ofprincipal executive offices)
`
`Securities registered or to be registered pursuant to Section 12(b) of the Act.
`Title of each class
`Name of each exchange on which registered
`
`Common Shares ar value CHF 0.20
`r share
`The New York Stock Exchange
`
`m
`Sectnities registered or to be registered pursuant to Section 12(g) of the Act.
`m
`Securities for which there is a reporting obligation pursuant to Section 15(d) ofthe Act.
`Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the
`close of the period covered by the annual report.
`301,18A404 Common Shares
`Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
`Act.
`
`No
`‘
`Yes
`X
`If this report is an annual or transition report. indicate by check mark if 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 period that the
`registrant was required to file such reports). and (2) has been subject to such filing requirements for the past 90
`days.
`N»
`\:J
`E
`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
`El
`Accelerated Filer
`IE]
`Large Accelerated Filer
`Indicate by check mark which financial statement item the registrant has elected to follow.
`Item 18
`:|
`Item 17
`|:|
`Ifthis 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).
`E No
`D Yes
`
`
`'1
`
`Argentum Pharm. LLC V. Alcon Research, Ltd.
`Case IPR2017-01053
`
`ALCON 2061
`
`

`

`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 ofNEVANACm ophthalmic preparation since
`its introduction in September 2005, global sales growth of TobraDarO ophthalmic suspension and ointment, and
`higher sales of the Vrgamoxo ophthalmic solution.
`
`Sales of Vlgamoxo, our newest anti-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 cormtries around the world. In July 2006, the Japanese Ministry of
`Health, Labor and Welfare approved Vegamoxm moxifloxacin solution (known in other markets as Vrgamoxo)
`for the treatment ofbacterial infections of the eye.
`The approval and the October 2006 commercial launch of Vegamoxn‘ in Japan were important achievements:
`however, the impact of the launch on sales in 2006 was negligible. (Vrgamoxo and Vegamoxm are licensed to
`Alcon by Bayer Healthcare AG.)
`
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`The U.S. commercial lalmch ofNEVANACD ophthalmic solution began in September 2005. NEVAMAC0 is
`the first ophthalmic non-steroidal anti-inflammatory drug ("NSAID") to receive FDA approval for the treatment
`of pain and inflammation associated with cataract surgery. In the time since its introduction. NEVAI‘MC‘O has
`captured approximately 22% of its therapeutic market in the United States during December 2006, according to
`the Wolters Kluwer Health Service Prescription Audit.
`
`Our line ofglaucoma products continued to show sales growth. Sales of IRAVATANO ophthalmic solution,
`our prostaglandin analogue, grew 17.2% for the year ended December 31, 2006. Earlier in 2006, the Company
`began providing its IRAVATAN‘“ DosingAid 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, IRAVATANO was sold in more than 100 markets. During the same period, Azopto ophthalmic suspension,
`the Company's topical carbonic anhydrase inhibitor (TCAI), posted a 16.7% sales increase from growth in both
`the U.S. and International markets.
`
`In September 2006, the FDA approved IRA VATANOZ'“ ophthalmic solution for the treatment of glaucoma
`for patients who are intolerant or insufliciaatly responsive to other intraocular pressure-lowering medications.
`IRAVA TANOZTM enables doctors to help glaucoma patients with a benzalkonium chloride ("BAC") fi'ee
`prostaglandin. The commercial launch of IRAVATANOZ'“ began in October 2006.
`
`Global sales of our key allergy product, PaternalD ophthalmic solution, grew 9.1% in the year ended
`December 31, 2006. U.S. sales ofPatanolo increased 4.2% in the year aided December 31, 2006 over 2005,
`despite increased competitive product offerings and sampling. Sold in Europe as Opat‘anolo ophthalmic
`solution, PatanolO 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 ofPatanolo in new countries. In July 2006, the Japanese Ministry ofHealth, Labor and Welfare
`gave approval to market Patanolo in Japan, the second largest ocular allergy market in the world. The
`Company's commercial laimch ofPatanolO in Japan began in September 2006. PatanolO was sold in more than
`85 cormtries in 2006.
`
`Sales of otic products increased 10.1%. despite slower market growth for this category. U.S. sales of
`CH-"RODEXo otic suspension were responsible for the increase in otic products sales during 2006. CHE’RODEXo
`otic is approved for treatment of middle ear infections in children with ear tubes and outer ear infections.
`(CHE’RODEXo is a registered trademark of Bayer AG, licensed to Alcon by Bayer Healthcare AG.)
`
`The change in 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 product line categories when paid, while rebates for Federal Medicaid programs
`historically have not. Consequently. sales of the various product line categories also reflect reductions for the
`shifi in the rebate types.
`
`

`

`Sggical
`
`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-priced AcrySof
`lenses to premimn-priced products, such as the («ic'rySojo Natural intraocular lens, the AaySojo IQ aspheric
`intraocular lens and the AcrySof ReSI'OR0 nmltifocal intraocular lens.
`
`The AcrySojO IQ intraocular lens is an aspheric lens that is designed to reduce corneal spherical aberration.
`Ophthalmic experts believe that uncorrected corneal spherical aberrations reduce visual flmction. Afier
`submitting clinical data on this lens to the Centers for Medicare and Medicaid Services, effective May 19, 2006,
`this agency recognized the AcrySofo IQ 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 NTIOL subset and adjusted payment
`for the ActySo]O IQ intraocular lens will remain in effect until February 27, 2011 .
`
`The AcIySofo ReS'I'ORQ lens was approved by the FDA in late March 2005. The AcrySOJQ Rezé'I'ORo lens
`uses a proprietary apodized difli'active refractive technology to give patients a full range of quality vision (near,
`intermediate and distance) that greatly increases their independence from glasses afier surgery. Largely due to
`its US. launch in May 2005, global sales ofAcrySofo ReSI'ORo grew to $102.2 million in the year ended
`December 31, 2006, compared to $54.2 million for the year ended Decanber 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% increase in vitreoretinal product sales.
`
`Refractive sales declined 8.0% for the year ended December 31. 2006. Refractive technology fees declined by
`13.8% and sales ofrefractive equipment declined in 2006 compared to 2005 as sales of the IADARWaveO
`wavefront systo- declined.
`
`Earlier in 2006, the FDA concluded its inspection of our refractive surgical equipment operation as part ofthe
`process to 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 approvals related to applications for the LADAR6000T“ excimer laser and
`new Cusl‘omCornea'D wavefi'ont system indications for use, including hyperopia with/without astigmatism and
`mixed astigmatism.
`
`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 Dec-bet 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 contact lens disinfectants reflected our success in gaining market share alter a major
`competitor withdrew one of its leading products from the market during the second quarter of 2006. The
`withdrawal created a surge in demand for 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 US. 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 OPH-FREEO RepleniSHD multipurpose disinfecting solution in the United States in the first
`quarter of 2006.
`
`Sales of our artificial tears products grew 17.3% over the same period Higher sales ofSystaneo lubricant eye
`
`