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Abbott divested its Medical Optics vision care business to J&J for $4.325B to satisfy antitrust conditions for the St. Jude acquisition. The divestiture streamlined Abbott toward cardiac and diagnostic devices while giving J&J surgical vision expansion in cataract and LASIK.
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FTC puts conditions on Abbott's proposed $25 billion acquisition of St. Jude Medical, requiring divestiture of two medical device businesses to settle…
announced that it had entered into an agreement dated September 14, 2016 to sell Abbott Medical Optics ("AMO"), its vision care business, to Johnson Johnson…
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announced that it had entered into an agreement dated September 14, 2016 to sell Abbott Medical Optics ("AMO"), its vision care business, to Johnson Johnson for $4.325 billion in cash, subject to customary purchase price adjustments for cash, debt, and working capital.
AMO's LASIK platform (iDesign wavefront diagnostic + Star S4 IR excimer laser, iFS femtosecond flap laser) competes in a refractive surgery market segmented by three device MOA classes. Excimer laser ablation systems: Alcon/WaveLight EX500 excimer (with Contoura topography-guided ablation, FDA approved 2016), Bausch + Lomb's Teneo 317 (FDA approved 2022), and Zeiss MEL 90 compete directly with AMO's Star S4 IR; Alcon WaveLight holds leading U.S. share by procedure volume. Femtosecond flap-creation lasers: Alcon's FS200, Ziemer's LDV Z8/Z6, and Zeiss VisuMax compete with AMO's iFS; the Zeiss VisuMax additionally enables the SMILE (small-incision lenticule extraction) procedure, an MOA-differentiated flap-less alternative approved by FDA in 2016 (myopia) and 2018 (astigmatism) that pulls volume out of traditional LASIK. Wavefront/topography diagnostics and planning: AMO iDesign vs. Alcon Contoura/Topolyzer and Zeiss Atlas. The Zeiss VisuMax SMILE franchise plus Alcon's WaveLight excimer installed base represent the primary commercial threat to AMO's LASIK systems, which J&J absorbed in the 2017 AMO acquisition. Source: FDA SMILE approval summary, Zeiss VisuMax PMA.
The AMO cataract franchise (Tecnis IOLs, Whitestar Signature phacoemulsification) competes in a device market consolidated around three MOA-differentiated segments. Intraocular lens (IOL) implants: Alcon's AcrySof IQ, Clareon, PanOptix trifocal and Vivity EDOF platform dominate premium IOL share globally, with monofocal AcrySof historically the volume leader; Bausch & Lomb's enVista monofocal and enVista Envy trifocal (FDA approved 2024) and HOYA Surgical Optics' Vivinex round out the premium IOL category. Phacoemulsification systems: Alcon's Centurion Vision System is the share leader in U.S. cataract ORs, directly competing with AMO's Whitestar Signature Pro and Bausch+Lomb's Stellaris Elite. Femtosecond laser-assisted cataract surgery (FLACS) is a rival MOA to conventional phaco: Alcon LenSx, Bausch+Lomb Victus, and Ziemer LDV Z8 compete with AMO's Catalys Precision Laser System. Alcon's surgical segment reported approximately $4.9B in FY2023 and is the primary franchise threat; the combined Tecnis/Whitestar/Catalys platform ranked as the clear #2. This is the market J&J acquired via the $4.325B AMO carve-out. Source: Alcon 2023 Annual Report on Form 20-F discloses surgical segment composition, Centurion and LenSx commercial status.
AMO's consumer eye-care portfolio (Complete multipurpose solution, Blink lubricant eye drops, RevitaLens disinfecting solution) competes across three MOA-differentiated OTC segments. Contact lens care/multipurpose disinfecting solutions: Alcon's Opti-Free PureMoist and Clear Care hydrogen-peroxide system, Bausch + Lomb's Biotrue and renu multi-purpose solution, and CooperVision/private-label solutions dominate shelf share; Complete and RevitaLens are direct positional rivals. Artificial tears / dry-eye lubricants: Allergan/AbbVie's Refresh and Refresh Optive family, Alcon's Systane Ultra and Systane Complete, Bausch + Lomb's Soothe XP and Similasan compete head-to-head with Blink Tears and Blink GelTears; this OTC category is heavily promoted and retailer-driven. Adjacent prescription dry-eye Rx (Restasis cyclosporine, Xiidra lifitegrast, Eysuvis loteprednol, Tyrvaya varenicline nasal spray) create a cross-MOA upgrade path that cannibalizes OTC lubricants for moderate-severe dry eye. Alcon's Vision Care segment recorded approximately $3.9B FY2023, with consumer OTC products (Systane, Opti-Free, Clear Care) representing the primary franchise threat to AMO's consumer line acquired by J&J Vision. Source: Alcon 2023 Form 20-F identifies Systane and Opti-Free as lead Vision Care brands.
Abbott completed restructuring involving AMO divestiture as part of the broader St. Jude Medical transaction regulatory requirements.
This transaction was part of Abbott's broader portfolio restructuring around the St. Jude Medical acquisition, divesting AMO to J&J to satisfy regulatory conditions.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Abbott Laboratories / St. Jude Medical (this deal) | 2016 | $25.0B | 75 |
| Abbott Laboratories / Knoll Pharmaceutical Company (BASF Pharma) | 2001 | $6.9B | 100 |
| Abbott Laboratories / Knoll Pharmaceuticals (BASF Pharma) | 2000 | $6.9B | 95 |
| Abbott Laboratories / Alere Inc. | 2016 | $5.8B | 95 |
| Abbott Laboratories / St. Jude Medical | 2016 | $30.5B | 82 |
| Abbott Laboratories / TheraSense Inc. | 2004 | $1.2B | 81 |
| Abbott Laboratories / Vysis Inc. | 2001 | $355M | 79 |
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