Johnson & Johnson last week announced intentions to purchase Abbott Medical Optics in a deal that will see $4.325 billion in cash change hands.
Abbott Laboratories executives expressed that the sale is part of an ongoing effort to streamline their offerings.
“We’ve been actively and strategically shaping our portfolio, which has recently focused on developing leadership positions in cardiovascular devices and expanding diagnostics,” Abbott chairman and CEO Miles D. White offered in a press release. “Our vision care business will be well-positioned for continued success and advancement with Johnson & Johnson, and I’d like to thank our employees for building a successful business.”
The Abbott Vascular division made headlines over the summer with the FDA clearance and first commercial use of the Absorb GT1 Bioresorbable Vascular Scaffold System, billed as the first absorbable stent for the treatment of coronary artery disease.
In an analysis of the deal, Bloomberg News notes that the purchase is also part of an ongoing strategy for J&J, pointing out the healthcare company “has been chasing deals for all three of its main businesses to boost growth and offset potential competition for prescription medicines.”
Besides pharmaceuticals and medical devices, J&J operates a consumer goods division with such well-known brands as Band-Aid and Neutrogena.
In their own press release, J&J notes that Abbott Medical Optics’ array of surgical products will serve as a complement to the company’s already robust business with Acuvue contact lenses.
The purchase needs to clear antitrust scrutiny from the government. Assuming it does so, the deal is expected to be formally completed early in 2017.