) recently announced that it has completed the previously
announced acquisition of privately-held OptiMedica Corporation
for $250 million in cash.
The acquisition was announced in Jul 2013. This acquisition
should expand Abbott Labs' vision care business into the
femtosecond laser-assisted cataract surgery market.
OptiMedica's Catalys Precision Laser System carries a CE mark
in the EU and has been approved in the U.S. as well. This laser
system replaces certain manual steps in cataract surgery with
precise, image-guided, femtosecond laser technology.
Hence, the acquisition will further boost the cataract surgery
business at Abbott Labs' which currently account for 60% of total
sales of the vision care business.
Abbott Labs's vision care business was up 2% in the second
quarter of 2013 driven by solid cataract sales attributed to
strong double-digit growth in the emerging markets and Tecnis of
intraocular lenses (IOL).
Abbott Labs expects further growth in its cataract business to
be driven by several important new product launches in 2013.
Key launches include Tecnis OptiBlue in Japan providing access
to the largest segment of the Japanese market and Tecnis Toric in
the U.S. enabling Abbott Labs to enter the faster growing premium
segment of the IOL market.
Further, Abbott Labs expects to launch Tecnis Preloaded IOL in
the U.S. in the second half of 2013 which should propel
Hence, Abbott Labs expects mid-single digit growth (excluding
currency translation impact) in the third quarter of 2013 driven
by traction in the cataract surgery business.
We are impressed by Abbott Lab's efforts to drive growth in
its promising vision care business.
We remind investors that Abbott Labs became a diversified
medical products company focusing on branded generic
pharmaceutical, medical devices, diagnostic and nutritional
businesses following the separation of its research-based
pharmaceuticals business into a new company,
), in Jan 2013.
Abbott Labs currently carries a Zacks Rank #3 (Hold). Right
) look attractive, each with a Zacks Rank #2 (Buy).
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