Abbott Labs Completes Purchase of Producer of Advanced Refractive Technologies
February 26, 2009
According to an article on Medill Reports, Abbott Laboratories has finalized its $2.8-billion purchase of Advanced Medical Optics Inc (“AMO”). According to its website, AMO is “focused on providing the full range of advanced refractive technologies and support to help eye care professionals deliver optimal vision and lifestyle experiences to patients of all ages.” AMO’s Complete Refractive Solution encompasses technologies addressing vision disorders such as myopia, hyperopia, and astigmatism; contact lens care; and corneal health.
Damien Connover, an analyst for Morningstar Research Inc., characterized the deal as a good one for Abbott due to a purchase price he regarded as “cheap,” and the potential of the deal to expand “Abbott’s medical device footprint.” Connover added that AMO’s business was down because its devices are used in ophthalmology practices for services that are somewhat elective, which patients may forego during a tough economic climate. But he expects the business to improve as the economy rebounds. Longer term, demographic trends also favor AMO’s business.
Click here for further details about the transaction on Medill Reports.
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