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Johnson & Johnson Vision Is Created With Completion of J&J’s Acquisition of AMO

Johnson & Johnson (NYSE: JNJ) announced an updated organizational and leadership structure this week for what will now be known as Johnson & Johnson Vision (J&J Vision), effective with the completion of the acquisition this week of Abbott Medical Optics (AMO), a wholly-owned subsidiary of Abbott.

The all-cash $4.325 billion acquisition was initially announced in September 2016, as VMail previously Johnson&johnsonreported.

J&J said the acquisition will allow the company to “reach more patients globally with expansion into cataract surgery.”

The deal includes Abbott’s ophthalmic products in three areas of patient care: cataract surgery, laser refractive surgery and consumer eye health. These product lines will now join with the world-leading Acuvue brand contact lenses business, and the combined organization will operate under the new J&J Vision brand name.

“With the addition of AMO’s world-renowned ophthalmic surgery business, J&J Vision is poised to become a world leader in eye health,” Ashley McEvoy, company group chairman, Johnson & Johnson Consumer Medical Devices, said in this week’s announcement. “Sight is precious, it’s the sense people fear losing the most. By bringing on board surgical solutions that are supported by the resources and global reach of Johnson & Johnson, we can improve and restore sight for more patients across the globe.”

A J&J spokesperson told VMail, the Johnson & Johnson Vision group will now have two platforms: Johnson & Johnson Surgical Vision Inc. (formally AMO), and Johnson & Johnson Vision Care Inc., maker of Acuvue brand contact lenses. The two eye health platforms will be referred to together as Johnson & Johnson Vision and the results will be reported as part of Johnson & Johnson’s Medical Device segment.

McEvoy, who has more than 20 years of J&J experience in the consumer, medical device and surgical spaces, will lead the Johnson & Johnson Vision group, according to the spokesperson.

The surgical business, which includes ophthalmic products in cataract surgery and laser refractive surgery, will be led by Tom Frinzi, an ophthalmology industry leader with 37 years of experience in health care. He has been leading AMO for the past year, but began his career in sales at J&J.

Swami Raote, a 25-year J&J veteran with experience across all three of the company’s business segments, will lead the contact lens business.

The surgical and contact lens businesses that make up Johnson & Johnson Vision will run distinct sales forces, given the different customer segments, and the company will “ensure complementary strategies in the marketplace. In line with Johnson & Johnson’s structure,” the spokesperson added. Other capabilities (such as R&D, supply chain, finance and others) will be managed across the J&J global organization, she said.

According to the J&J announcement, eye health is “one of the largest, fastest-growing and most underserved segments in health care today,” with estimated annual expenditures of almost $70 billion. J&J Vision has dual headquarters, in Jacksonville, Fla., and Santa Ana, Calif., and employs more than 8,400 people worldwide.

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