Advanced Medical Optics Inc (AMO) has completed its previously announced acquisition of Pfizer's ophthalmic surgical business, said a company release.

AMO announced on April 21, 2004 its agreement to acquire Pfizer's ophthalmic surgical business in a $450 million all-cash transaction. The assets acquired from Pfizer include the Healon line of viscoelastic products used in ocular surgery, CeeOn and Tecnis intraocular lenses (IOLs) used in cataract surgery and the Baerveldt glaucoma shunt. These assets generated annual sales of approximately $150 million in 2003. AMO also acquired related manufacturing and research and development facilities in Groningen, Netherlands; Uppsala, Sweden; and Bangalore, India.

"The addition of Pfizer's ophthalmic surgical assets, which include the industry's premier viscoelastic product line and patented IOL designs utilizing wavefront technology, is an excellent strategic fit for AMO, and complements our existing technological proficiencies," said James V. Mazzo, AMO president and chief executive officer.

"The transaction also allows us to enter the glaucoma medical device business and gain a greater understanding of the needs of glaucoma specialists and their patients. AMO has long respected the superior quality and technological advancements of the Pfizer ophthalmic surgical business, which served surgeons around the world for many years under the Pharmacia name," he added.

The company previously announced that it expects combined 2005 revenue from its existing business and the acquired Pfizer ophthalmic surgical business to be between $800 million and $830 million. Combined pro forma diluted earnings per share for 2005 are expected to be between $1.50 and $1.70.

To finance the transaction, AMO recently initiated a recapitalization of its balance sheet

"In addition to funding the transaction, this recapitalization was designed to reduce AMO's cost of capital and interest rate risk while increasing our stockholders' equity, and improving operational and financial flexibility for future growth," said Richard A. Meier, executive vice president, operations and finance and chief financial officer.

Advanced Medical Optics, Inc. (AMO) is a global leader in the development, manufacturing and marketing of ophthalmic surgical and eye care products. The company focuses on developing a broad suite of innovative technologies and devices to address a wide range of eye disorders.