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Abbott to acquire OptiMedica for up to $400 million
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Abbott Medical Optics has agreed to purchase OptiMedica for $250 million in cash and additional milestone payments of up to $150 million, according to a news release.
“The acquisition of OptiMedica is an important step in expanding Abbott’s portfolio in cataract surgery,” Murthy Simhambhatla, PhD, president of Abbott Medical Optics (AMO) said in an e-mail interview with Ocular Surgery News about the acquisition. “OptiMedica’s transformational technologies, combined with Abbott’s financial strength and global market presence, will broaden the benefits of both companies’ products to more people around the world.”
Simhambhatla said he expects the transaction with OptiMedica to be completed by the end of the year.
“Once it does, the acquisition will bring new femtosecond laser and laser cataract technologies and capabilities to Abbott,” he said. “During the integration process, we will determine how to appropriately integrate these into AMO’s legacy business.”
OptiMedica’s Catalys femtosecond laser cataract surgery system, which has clearance from the U.S. Food and Drug Administration and a CE mark in Europe, is indicated for anterior capsulotomy, phacofragmentation, and creating single- and multi-plane arc incisions in the cornea during cataract surgery.
Regarding the current OptiMedica workforce, Simhambhatla praised the unique talent and expertise of OptiMedica with femtosecond lasers and femtosecond cataract surgery, saying that they are critical to the success of the acquisition.
“Abbott, like any successful company, continually assesses staffing levels and makes appropriate business decisions based on workforce and operational needs,” he said.
OptiMedica’s corporate headquarters are currently based in Sunnyvale, Calif. Abbott Medical Optics is based in Santa Ana, Calif.
Simhambhatla took over as head of AMO approximately 1 year ago, following the departure of Jim Mazzo. Prior to the current acquisition, OSN spoke with Simhambhatla by phone about his new role with AMO.
“I started at AMO last summer when Jim Mazzo was still the president of the business, and we had a 6-month overlap period, just given the complexity of the ophthalmology business, getting me oriented with the key customers and the needs of the ophthalmology marketplace. On the first of this year, I took over as the head of AMO.
“A big part of my focus is in determining the right strategy and approach to propel AMO into clear leadership in many of the segments we participate in,” he said. “Obviously, it spans everything from the innovation process to commercial strategies, including geographic growth plans, from how to preserve the value of developed markets with all of the economic pressures, to how best to capitalize the economic growth of the emerging markets. So, a big part of my focus is truly in helping Abbott realize its full potential in ophthalmology.”
In the end, growth in ophthalmology will be driven by putting the patient first and addressing unmet needs, according to Simhambhatla.
“For example, we can talk about IOLs, and both of these segments are important — the premium segment and the reimbursed segment — because it is about responding to each individual patient,” he said. “So from our perspective, we want to maintain that sharp focus on patient needs and patient outcomes, and we want to continue to maintain a very strong focus on truly understanding and delivering to the needs of surgeons. That will be our legacy, and we believe that it is a recipe for success moving forward for Abbott.” – by David W. Mullin