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J&J buying Abbott's vision care assets for US$4.3b
[NEW YORK] Johnson & Johnson announced Friday that it reached a deal to buy opthalmic assets from Abbott Laboratories for US$4.3 billion as it targets vision care in an aging world.
J&J will acquire Abbott Medical Optics, which works in three areas: cataract surgery, laser vision surgery (Lasik) and consumer items such as contact solution and eye drops. AMO had sales of US$1.1 billion in 2015.
"Eye health is one of the largest, fastest growing and most underserved segments in health care today," said Ashley McEvoy, who leads J&J's vision care division.
"With the acquisition of Abbott Medical Optics' strong and differentiated surgical ophthalmic portfolio ... we will become a more broad-based leader in vision care." Abbott chief executive Miles White said the divestiture fit with the company's shift.
"We've been actively and strategically shaping our portfolio, which has recently focused on developing leadership positions in cardiovascular devices and expanding diagnostics," Mr White said.
In afternoon trade, shares of Abbott rose 1.8 per cent to US$41.88, while Dow member J&J dipped 0.3 per cent to US$118.33.