Updates on Medical Devices in Orange County
Copyright Jack Mixner. 714 449 1040. www.mixnerstrategy.com
Two updates on medical device companies in Orange County:
Advanced Medical Optics, Inc. is recalling 3 million bottles of contact lens solutions because of contamination of their production line in China. They're not blaming some other product or people who use their solutions. They're just recalling everything and, a bonus, rebuilding the entire manufacturing lines used to manufacture the products.
Looks like the perfect course of action, especially in light of the recent disasters their competition has faced through less vigorous action in similar situations (Reed, page 1).
SpaceLabs Healthcare, Inc. is relocating to Seattle. An M&A transaction is causing the consolidation and move back to the parent's geographical location (Tolkoff, page 5).
Strategically, the move might make sense, especially if there are actual synergies when manufacturing facilites are merged. Companies buy other companies because they believe they add something special that makes the newly merged company more valuable. We'll see if this is the case this time.
References
Reed, Vita. Advanced Medical: Recall Strategy, Fallout. Orange County Business Journal. 4-10 December 2006. Page 1.
Tolkoff, Sarah. Irvine Device Maker Relocating to Seattle. Orange County Business Journal. 4-10 December 2006. Page 5.