Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Abbott Buying OptiMedica for Up to $400 Million

Don't look now, but Abbott Labs (NYSE: ABT  ) is about to buy itself a bit more growth.

Simultaneous with its announcement of a $310 million acquisition in the vascular stent space Monday, Abbott also announced that it will be spending a further $250 million -- and perhaps as much as $400 million with subsequent milestone payments -- to acquire privately held cataract surgical equipment maker OptiMedica.

As Abbott explained in a statement, most cataracts today are treated by surgeons making incisions in the eye by hand. OptiMedica, however, has a Catalys Precision Laser System that allows surgeons to perform at least some incisions with computer-guided, "femtosecond" laser technology. Abbott notes that the system in question is cleared for sale in both Europe and the U.S. already.

Abbott puts the size of the global cataract surgery market at nearly 22 million operations in 2013. The company is already deeply involved in this market and says it gets 60% of its vision care revenues from cataract-related sales.

Even so, this market is small relative to the rest of Abbott's business -- small enough that it groups cataract surgery with several other of its business lines under the category "other products " in its financial statements. Management says that the deal is not likely to affect 2013 earnings guidance at all, even if it closes, as expected, before the end of the year.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2538881, ~/Articles/ArticleHandler.aspx, 9/29/2016 8:13:40 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:01 PM
ABT $41.44 Down -0.85 -2.01%
Abbott Laboratorie… CAPS Rating: *****