Acquisitive Abbott Adds to Optics and Vascular Businesses

Abbott Laboratories, a medical device company located in Abbott Park just outside Chicago, Ill., has made two acquisitions this week. OptiMedica Corporation, a privately held, Sunnyvale, Calif.-based ophthalmic device company, will be purchased for $250 million plus additional payments of up to $150 million depending on certain closing conditions; and Webster, Texas-based IDEV Technologies Inc., a privately held company focused on developing next-generation medical devices for use by interventional radiologists, vascular surgeons and cardiologists, will be purchased for $310 million.

The OptiMedica acquisition is hoped to help Abbott expand its vision care business into the femtosecond laser-assisted cataract surgery market. Currently, most cataract procedures are performed manually, with the surgeon making incisions into the eye by hand. OptiMedica’s Catalys precision laser system is designed to allow surgeons to replace some of the technically demanding manual steps in cataract surgery with a precise, computer-guided, femtosecond laser technology. A femtosecond laser can be used to create anterior capsulotomy (a type of eye surgery in which an incision made into the capsule of the crystalline lens of the eye), effect phacofragmentation (rupture and aspiration of the lens), or make a variety of incisions during ocular surgery. The Catalys laser system has both CE mark in Europe and clearance from the U.S. Food and Drug Administration (FDA).

Catalys laser system’s integrated 3-D optical coherence tomography (OCT) technology also provides imaging of the anterior chamber of the eye, which is hoped to support safe and accurate preparation of the lens capsule for precise positioning of intraocular lenses. Coupled with an intuitive user interface and the minimally invasive Liquid Optics patient interface, Catalys is designed with the complete surgical experience in mind.

“The acquisition of OptiMedica will provide Abbott with an entry point into the rapidly developing laser cataract surgery market,” said Murthy Simhambhatla, senior vice president of Abbott Medical Optics. “The Catalys laser system provides physicians with a state-of-the-art, computer-guided alternative in treating patients suffering from cataracts.”

Because of the global aging population, demand for eye care is also on the rise. According to the MarketScope 2013 Comprehensive Report on the Global Cataract Surgical Equipment Market, nearly 22 million cataract surgeries will be performed globally this year. The average age of a cataract patient is between 65 and 70, and approximately 12 percent of the global population is age 60 or older.

Abbott’s second acquisition, IDEV, makes products including Supera Veritas, a self-expanding nitinol stent system with CE mark in Europe for treating blockages in blood vessels due to peripheral artery disease (PAD). Supera Veritas is designed to mimic the body’s natural movement to promote blood flow in the treated area while offering strength and flexibility. These properties are particularly important when considering treatment for blockages in the blood vessels in the thigh and knee where rapid and frequent movement occurs with daily activities such as walking, sitting and standing.

In the United States, Supera Veritas is cleared only for the treatment of biliary strictures (narrowing of a bile duct) related to cancer. It is currently being reviewed under a premarket approval application by the FDA for treatment of the superficial femoral artery, which is the main artery in the thigh that supplies blood to lower extremities. The device has been studied in more than 1,500 patients in company- and physician-sponsored trials around the world, including a trial to support regulatory filings in the United States.

“The acquisition of IDEV Technologies will expand and complement Abbott’s existing peripheral technology portfolio of guidewires, balloon dilatation catheters and stents, making it one of the most comprehensive and competitive portfolios in the industry,” said Chuck Foltz, senior vice president of Abbott Vascular. “This technology has the potential to make a significant impact on the treatment of patients who suffer from peripheral artery disease, a growing concern around the world.”

As many as 27 million people in Europe and North America suffer from PAD.  An increasing prevalence of PAD is expected to place further economic burden on the healthcare system, making timely and effective treatment an important consideration, according to a 2007 article in the Journal of Vascular Surgery. In patients with PAD, fatty deposits accumulate on the inner wall of the artery, causing blockages that reduce the flow of blood to lower parts of the leg. Patients with PAD can experience leg pain when walking and, if untreated, the disease can progress with severe consequences such as critical limb ischemia and amputation.

The transactions for both OptiMedica and IDEV are expected to be completed by the end of this year.