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AMO reports sales increases of 25% for third quarter
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SANTA ANA, Calif. — Advanced Medical Optics reported sales of $248.2 million for the third quarter of 2005, an increase of 25% from the previous year’s totals, the company announced in a press release. AMO attributed the rise primarily to its completed acquisition of Visx and to increased sales.
Net losses for the company were reduced during the quarter as well, to $31.2 million this year, down from $31.7 million in the third quarter of 2004, the company said. Losses in 2004 were attributed to write-offs and adjustments after the purchase of Pfizer’s ophthalmic surgical business.
Ophthalmic surgical sales grew 50.4% in the quarter, to $170.6 million, according to the company. Sales related to the Visx acquisition of $47.7 million accounted for 42% of the growth, the company said.
Total cataract/implant sales rose 8.6% to $120.3 million. IOL sales increased 6.1% to $62.3 million. Sales of viscoelastics rose 2% to $28.9 million. The company attributed the growth to an 11.4% increase in sales of Healon that offset declines in other viscoelastics the company is discontinuing. Phacoemulsification product sales rose 15.1%, to $19.5 million, based on “strong sales” of AMO’s Sovereign with WhiteStar technology.
Total laser vision correction sales rose to $50.4 million, including sales of both Visx and AMO microkeratomes. Licensing and related sales totaled $31.2 million, up about 15% compared to Visx’s reported licensing and related sales in the year-ago period. Refractive system sales increased about 71% to $11.1 million, compared with Visx’s reported system sales in the previous year’s third quarter. The increase was attributed to new unit placements in international markets, as well as the September rollout of iris registration in the United States, the release said.
Eye care sales decreased 8.6% in the quarter, to $77.6 million. In Japan and parts of Europe, AMO experienced a sharper-than-expected decline in sales of hydrogen peroxide. Strong daily disposable lens growth in Japan adversely affected multipurpose solution sales as well, AMO said.
AMO said it will “adopt a more aggressive timeline for discontinuing non-strategic cataract and eye care products, while eliminating or redeploying the resources that support these products.” By the end of 2005, the company expects to stop production of some of its older cataract and eye care products. AMO expects to lose about $30 to $40 million in sales during 2006 related to the discontinued products. The company also expects to incur write-offs of about $70 to $80 million related to the rationalization and repositioning, “primarily in the fourth quarter of 2005 and first half of 2006,” the release said.