Johnson & Johnson Completes Acquisition of Abbott Medical Optics
Source: Johnson & Johnson
Johnson & Johnson announced that it has completed the acquisition of Abbott Medical Optics (AMO) in an all-cash deal worth $4.325 billion. The deal, which was originally announced September 16, 2016, includes ophthalmic products in three areas of patient care: cataract surgery, laser refractive surgery, and consumer eye health. These product lines will now join with the Acuvue brand contact lenses business, and the combined organization will operate under the brand name "Johnson & Johnson Vision."
This newly joined organization, J&J Vision, will be made up of two businesses: the contact lens business, which will be led by J&J veteran Swami Raote; and the surgical business, which will continue to be led by Tom Frinzi.
“As we create this new company, Johnson & Johnson Vision, it really is two distinct platforms, one focused on contact lenses and one focused on surgical. We’ll operate separately. We’ll continue to serve those constituencies accordingly, but the real opportunity we have is how we thoughtfully leverage optometry and ophthalmology to better-serve the patient base worldwide, and we’re excited about that opportunity," Mr. Frinzi said in an interview with Eyewiretoday.com.
"Fifty percent of the worldwide population needs some form of vision care, and yet only 10 percent are really being treated and taking advantage of those opportunities. What a tremendous opportunity we have now by really managing this entire continuum of care — whether you are a young adolescent in contact lenses, or a senior citizen ready for lens-based surgery, and everyone in between, we now have a portfolio across both businesses that can take care of that," Mr. Frinzi added.
Both Mr. Swami and Mr. Frinzi will report directly to Ashley McEvoy, company group chairman, responsible for Johnson & Johnson's vision care companies. Ms. McEvoy also spoke with Eyewiretoday.com at the AECOS Winter Symposium meeting in Aspen, Colorado, about why she believes AMO is an attractive asset for Johnson & Johnson.
“The way we always access opportunities is to look at the market first, so when we look at the market, we think eye health is a very large, attractive, growing market with significant unmet need," Ms. McEvoy said.
"We wanted a strong foundational base in surgery. [AMO has a] very strong capability - number 2 in the world - very strong differentiated intraocular lens capabilities; very strong femtosecond laser; and very strong pedigree in refractive - number 1 in the world in refractive," Ms. McEvoy said. "And we are pleased to have a sibling join us in contact lens solutions, and 'Blink' for dry eye. So we really think its a strong portfolio, a very strong cultural fit. I would say we both value science, we both value technology, we both put the customer and the patient in the center."
In January 2009, Abbott purchased Advanced Medical Optics for $2.8 billion, including debt. In 2015, Johnson & Johnson, based in New Brunswick, New Jersey, reported $25.1 billion in medical-device sales, while AMO's parent company Abbott had $20.4 billion in total revenue.
Last month, Ms. McEvoy spoke to Mark Kontos, MD, host of Bryn Mawr Communications' "Ophthalmology Insider" series, about her first impressions of AMO and where she believes the ophthalmology business is headed. That episode can be viewed here: http://bit.ly/2mxJJCN
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