From our beginnings in 1945 when Robert D. Alexander and William C. Conner opened a small pharmacy in Fort Worth, to our current state as a $6 billion international pharmaceutical company, we remain committed to offering the best eye care products for professionals and consumers.

Demand for Alcon's comprehensive product line will continue to grow as the world population ages. However, the increasing global focus on controlling health care costs, combined with international currency fluctuations brought about by unstable economies, continue to provide challenges.

Unique products have an advantage as health care costs come under greater scrutiny. In the U.S., price is a serious consideration in the undifferentiated product categories, meaning generic use will rise. Fewer physicians will maintain individual practices; group practices, preferred provider organizations or health maintenance organizations with physicians as employees or owners are expanding.

Alcon's strategy to grow in these new market conditions remains steadfast: maintain focus on eye-related products, build on our established competence, while leveraging selected opportunities in the ear (otic) arena. We will maintain our broad, full-line approach to the ophthalmic industry, offering customers the convenience of dealing with a single source for eye care products. Generic ophthalmic pharmaceuticals will remain part of our product line where strategically appropriate.

The company's goal is to make Alcon products available throughout the world; thus becoming the market leader in every market we serve. The lessons learned abroad where price controls have long presented business challenges have now been applied to the U.S., where health care reform is providing similar challenges.