Eye opener
Advanced Medical Optics, a leading ophthalmology products firm, announced the purchase of IntraLase, a maker of ophthalmologic lasers. The deal between the two US companies is for over $800 million.
Advanced Medical Optics (AMO) is already a dominant force in its fields, its lasers being involved over 60% of the Lasik sight-correction surgery in the world. The company was spun off from Allergan Inc. in 2002. It also specializes in contact lens cleaning products and in equipment for cataract and glaucoma surgery.
IntraLase sells lasers that replace used in the first steps of Lasik surgery, lasers that replace hand-held blades previously used. According to the company, its devices make possible "All laser Lasik" procedure,
According to a Wall Street Journal story ("Vision-Correction Rivals to Unite", 1/ 8/07), after years of growth, the Lasik market has leveled off in the US. AMO hopes to push the IntraLase method to universal acceptance to spur sales. IntraLase is only used in one quarter of the 1.4 million Lasik procedures in the US. The method has been shown to improve recovery and clarity after the Surgery.
The move is a horizontal acquisition of an adjacent product line. It's also an attempt to restart AMO's momentum after significant financial losses last year. It does signify a major consolidation in a medical specialty.
6:22:19 PM 
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