Healthcare device and goods manufacturer Johnson and Johnson has bought Abbott Medical Optics (AMO), a wholly-owned subsidiary of Abbott Laboratories, for $4.325 billion.
The transaction, which is expected to close in the first quarter of 2017, will include ophthalmic products in cataract surgery, laser refractive surgery and consumer eye health segments.
AMO reported sales of $1.1 billion for 2015. The company is known for its high quality intraocular lenses used in cataract surgery, along with laser vision (Lasik) technologies. With the acquisition, Johnson and Johnson looks to expand its portfolio and make its own mark in the vision care sector.
‘Eye health is one of the largest, fastest growing and most underserved segments in health care today,’ said Ashley McEvoy, company group chairman, responsible for Johnson and Johnson’s Vision Care Companies. ‘With the acquisition of Abbott Medical Optics’ strong and differentiated surgical ophthalmic portfolio, coupled with our world-leading Acuvue contact lens business, we will become a more broad-based leader in vision care. Importantly, with this acquisition we will enter cataract surgery – one of the most commonly performed surgeries and the number one cause of preventable blindness.’
The World Health Organisation estimates that approximately 20 million people are blind from age-related cataracts and that there are at least 100 million eyes with compromised visual acuity caused by cataracts. These numbers are steadily rising due to population growth and increasing life expectancy.
The acquisition also includes AMO’s consumer eye health products, such as over-the-counter drops for dry eye, as well as multipurpose solutions and hydrogen peroxide cleaning systems for patients who wear contact lenses. Advanced laser vision (Lasik) technologies designed to enhance surgeon productivity and perform vision correction are also provided by AMO and will be aquired in the transaction.
The acquisition is expected to be completed by the second quarter of 2017. The closing of the transaction is subject to antitrust clearance and other customary closing conditions.