Continued Innovation

COVER STORY

Across all three of its business units, Advanced Medical Optics Inc. (AMO; Santa Ana, CA) continues to roll out a range of new technologies designed to position the company for future growth. Noteworthy product developments and launches over the past year include the following.

Cataract and Implant Technologies. In late 2007, AMO launched three new refractive technologies to the European market. The Tecnis one-piece intraocular lens (IOL) and the Tecnis multifocal acrylic IOL were introduced for the first time in any market. Meanwhile, the WhiteStar Signature phacoemulsification system, launched in the United States in April 2007, made its debut on the European market.

"These products are excellent examples of our investment in research and development producing innovative new technologies, whether building off of an existing platform such as with the WhiteStar Signature system and Tecnis multifocal IOL, or in developing a brand-new technology like the Tecnis one-piece IOL," says James V. Mazzo, AMO chairman and CEO.

In 2007, AMO's intraocular lens sales rose 8.8% to $317.2 million. Phacoemulsification sales rose 3.6% to $90.7 million for 2007.

Laser Vision Correction. In April 2007, AMO completed its $808 million acquisition of IntraLase Corp. (Irvine, CA). "The addition of IntraLase's state-of-the-art femtosecond laser technology to AMO's unmatched portfolio of corneal and cataract products allows us to forge a new path for vision care with a full suite of technologies to address a lifetime of refractive needs," says Mazzo.

Use of IntraLase's femtosecond laser is increasingly seen as the standard of care in many ophthalmic surgery suites around the world. The laser replaces traditional handheld blades and enables surgeons to provide greater accuracy and patient safety in creating a corneal flap, which is the initial step in the laser-assisted in situ keratomileusis procedure.

For 2007, AMO's U.S. femtosecond procedure volumes grew 41.5% on a pro forma basis. Internationally, pro forma femtosecond procedure sales grew 84.2% during the year.

Eye Care. Following a widespread contact lens solution recall in the spring of 2007, AMO's eye care business relaunched its Complete Easy Rub multipurpose solution last August. The relaunch helped partly offset multipurpose solution sales declines. For 2007, multipurpose sales declined 59.8% to $59.2 million, which included about $41.5 million in returns and an estimated $84 million in lost sales related to the recall.

In addition, AMO's eye care business recently launched a new over-the-counter dry-eye drop, which represents a completely new category for the company—one in which AMO was not allowed to compete for three years following its spin-out from Allergan. Mazzo estimates that the market for such products stands at $500 million or more.

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