Johnson and Johnson to acquire Abbott Medical Optics for $4.325 billion
Johnson and Johnson announced that it has reached an agreement to acquire Abbott Medical Optics, a wholly owned subsidiary of Abbott Laboratories, for $4.325 billion in cash.
According to a Johnson and Johnson press release, the acquisition will include ophthalmic products in cataract surgery, laser refractive surgery and consumer eye health, including over-the-counter drops for dry eye, solutions and cleaning systems for contact lenses, IOLs and advanced laser vision technologies. In 2015, Abbott Medical Optics reported sales of $1.1 billion.
“We looked at the market and we believe that eye health is one of the top five health care segments. It’s fast growing, growing north of 5%, with significant unmet needs and a lot of underserved segments. We pay close attention to eye health,” Ashley McEvoy, company group chairman for Johnson and Johnson’s Vision Care Companies, told Ocular Surgery News. “Why AMO? Abbott Medical Optics is the number two leader in surgical ophthalmology. They have a very strong presence in cataracts, which is one of the most commonly performed surgeries around the world. It is one of the number one causes of preventable blindness - big health care purposes there.”
The transaction is expected to be completed in the first quarter of 2017.
EDITOR'S NOTE: This article has been updated to include interview quotes from Ashley McEvoy, company group chairman for Johnson and Johnson’s Vision Care Companies.