Abbott to Enter Laser Cataract Surgery Market through Acquisition of OptiMedica
ABBOTT PARK, Ill., July 15, 2013 /PRNewswire/ -- Abbott (NYSE: ABT) today announced it has entered into an agreement to purchase OptiMedica Corporation, a privately held, Silicon Valley-based ophthalmic device company. The acquisition will enable Abbott to expand its vision care business into the femtosecond laser-assisted cataract surgery market. Under the terms of the agreement, Abbott will acquire OptiMedica for $250 million, net of cash, plus additional payments totaling up to $150 million upon completion of certain development, regulatory or sales milestones.
Currently, most cataract procedures are performed manually, with the surgeon making incisions into the eye by hand. OptiMedica's Catalys™ Precision Laser System is designed to allow surgeons to replace some of the technically demanding manual steps in cataract surgery with a precise, computer-guided, femtosecond laser technology. A femtosecond laser can be used to create anterior capsulotomy, effect phacofragmentation, or make a variety of incisions during ocular surgery. The Catalys laser system has both CE Mark in Europe and clearance from the U.S. Food and Drug Administration.
"The acquisition of OptiMedica will provide Abbott with an entry point into the rapidly developing laser cataract surgery market," said Murthy Simhambhatla, senior vice president, Medical Optics, Abbott. "The Catalys laser system provides physicians with a state-of-the-art, computer-guided alternative in treating patients suffering from cataracts."
The global demand for vision care is on the rise, as the worldwide population ages and the emerging middle class grows in developing nations. Nearly 22 million cataract surgeries will be performed globally in 20131. The average age of a cataract patient is between 65 and 70, and approximately 12 percent of the global population is age 60 or older2.
Abbott is among the worldwide leaders in the overall cataract segment with its TECNIS line of monofocal, multifocal, and toric intraocular lenses (IOLs). Cataract-related sales represent approximately 60 percent of Abbott's vision care sales.
The Catalys laser system is indicated for use in patients undergoing cataract surgery for removal of the crystalline lens, with the following intended uses:
- anterior capsulotomy (opening of the lens capsule);
- phacofragmentation (softening of the lens nucleus); and
- creation of single and multi-plane arc incisions in the cornea.
Additionally, the Catalys laser system's integrated 3D Optical Coherence Tomography (OCT) technology provides imaging of the anterior chamber of the eye, supporting safe and accurate preparation of the lens capsule for precise positioning of IOLs. Coupled with an intuitive user interface and the minimally invasive Liquid Optics™ patient interface, Catalys is designed with the complete surgical experience in mind. OptiMedica is dedicated to developing performance-driven technologies that improve patient outcomes.
The transaction is expected to close by the end of the year and will not impact Abbott's ongoing full-year 2013 earnings-per-share guidance. The transaction is subject to customary closing conditions, including antitrust clearances.
About Abbott Medical Optics (AMO)
Abbott Medical Optics is focused on delivering life-improving vision technologies to people of all ages. The company offers a comprehensive portfolio of cataract, refractive and eye care products. Products in the cataract line include monofocal and multifocal intraocular lenses (IOLs), phacoemulsification systems, viscoelastics, and related products used in ocular surgery. Products in the refractive line include wavefront diagnostic devices, femtosecond lasers and associated patient interface devices; excimer laser vision correction systems and treatment cards. Products in the eye care line include disinfecting solutions, enzymatic cleaners, lens rewetting drops and artificial tears. For more information, please visit www.abbottmedicaloptics.com.
Abbott is a global healthcare company devoted to improving life through the development of products and technologies that span the breadth of healthcare. With a portfolio of leading, science-based offerings in diagnostics, medical devices, nutritionals and branded generic pharmaceuticals, Abbott serves people in more than 150 countries and employs approximately 70,000 people.
Visit Abbott at www.abbott.com and connect with us on Twitter at @AbbottNews.
Private Securities Litigation Reform Act of 1995 – A Caution Concerning Forward-Looking Statements
Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors," to our Annual Report on Securities and Exchange Commission Form 10-K/A for the year ended Dec. 31, 2012, and are incorporated by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
1, 2 MarketScope. 2013 Comprehensive Report on the Global Cataract Surgical Equipment Market