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

Robert Barrie

Fri, May 16, 2025, 12:50 PM 3 min read

Shares in STAAR Surgical jumped today (16 May) after the implantable lens developer revealed plans to bring $30m worth of shares back under ownership, a positive sign for the company despite revenue struggles due to weak demand in China.

US-based STAAR, whose board authorised the share repurchase programme of outstanding common stock today, said the timing, manner, and price of any transactions will be determined at its discretion. STAAR had approximately 49.5 million shares of common stock outstanding as of March 2025.

Shares in the Nasdaq-listed company rose 5% to a price of $19.25 at market open on 16 May following the announcement. STAAR has a market cap of $906m.

STAAR may buy back share in the open market, through privately negotiated transactions, or by entering structured repurchase agreements with third parties.

Block purchases, which involve buying a large number of shares to avoid market price fluctuations, could also be an avenue. STARR said that routes are alongside or under Rule 10b5-1 trading plans – a regulation that allows company insiders to trade stock without violating trading laws.

STAAR stated it may modify or suspend the programme at any time, though it currently plans to continue it over the next six months.

Buying back stock is a way for companies with auxiliary cash to boost earnings per share. It also increases the value of remaining shares and adjusts voting rights. However, the size and nature of buybacks depend on how much the company has in reserve.

STAAR stated that the share repurchase will be funded from cash on hand and cash generated from operations. The company had $222.8m to call upon as of March 2025.

Buying back shares has become a popular trend in 2025 as companies look to shore up ownership stakes amid an uncertain macroeconomic climate. In the pharmaceutical industry, Sanofi is executing a $5.1bn share buyback programme in 2025.

“Our decision to initiate a share repurchase programme underscores the boards and management’s confidence in STAAR’s future and our ability to return to sustainable, profitable growth,” said STAAR Surgical’s CEO Stephen C Farrell.

STAAR struggled with revenue in 2024, posting just $49m in full-year results – a drop from $76.3m in 2023. During its 2024 earnings report, the company blamed the “significant decline in China revenue” amid government initiatives affecting device procurement. It is an issue affecting a broad cohort of players in the medtech industry. Philips, for example, continues to expect a subdued demand for products in the region this year.