Abbott Laboratories (ABT) said Monday that it is spending nearly three-quarters of a million dollars to broaden its peripheral technology and optical portfolios.
For starters, the Abbott Park, Illinois company is spending $310 million net cash and debt to acquire IDEV Technologies, a Webster, Texas-based maker of medical devices for use by interventional radiologists, vascular surgeons and cardiologists. A key product of IDEV is its Supera Veritas®, a self-expanding stent for treating blockages related to peripheral artery disease, or PAD, a disease that can lead to critical limb ischemia and amputation. Supera Veritas is approved for use in PAD patients in Europe.
Stateside, Supera Veritas is only cleared for treating narrowing of a bile duct related to cancer. It is also currently being reviewed by the Food and Drug Administration as a treatment of the superficial femoral artery.
The transaction is expected to close by the end of 2013 to bolster Abbott’s franchise of guidewires, stents and balloon dilatation catheters. The company doesn’t expect it to impact this year’s earnings.
Abbott also agreed to acquire Sunnyvale, California-based ophthalmic device company OptiMedica Corporation for $250 million, net of cash, plus additional payments of up to $150 million if certain developmental, regulatory and sales milestones are met in the future.
The purchase entrenches Abbott deeper in the cataract business with OptiMedica’s femtosecond laser-assisted cataract surgery device, called the Catalys™ Precision Laser System. Abbott noted in today’s statement that most of this year’s 22 million cataract surgeries will be performed manually. Catalys allows a surgeon to make a variety of computer-guided incisions as well as providing 3D images of the eye.
The system has marketing approval from the U.S. FDA as well as a CE Mark for sales in Europe.
Abbott currently generates about 60 percent of its vision care revenue through sales of its Tecnis line of monofocal, multifocal and toric intraocular lenses for cataract patients.
This deal is also expected to close by the end of the year and not impact 2013 earnings guidance.
Investors aren’t reacting to the new acquisitions. Shares are trading at $35.32, right where they closed on Friday. So far in 2013, shares of ABT have climbed about 14 percent, essentially in line with gains of the blue chip indexes.
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