DEFA14A 1 ddefa14a.htm SOLICITING MATERIAL PURSUANT TO SECTION 240.14A-11C OR SECTION 240.14A-12 Soliciting Material Pursuant to Section 240.14a-11c or Section 240.14a-12

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Intralase Corp.

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Advanced Medical Optics to Acquire
IntraLase
January 8, 2007
Filed by IntraLase
Corp.
Pursuant to Rule 14a-12 under the Securities Exchange  Act of 1934
Subject Company: IntraLase
Corp.
Commission File No. 000-50939


Forward-Looking Statements
2
Our statements in this presentation on slides 4, 7, 9, 10, 19, 26-28, 30-34, 36, 37, and 39 and elsewhere that refer to AMO's
financial
projections or estimated future results, are forward looking statements that reflect the Company's current analysis of existing trends
and  information.  AMO disclaims any intent or obligation to update these forward looking statements.  Actual results may differ
from
current expectations based on a number of factors affecting the businesses of AMO and IntraLase
and affecting the proposed
transaction, including risks associated with the following:
Uncertainty as to whether the transaction will be completed;
Successfully integrating AMO and IntraLase;
The failure to realize the synergies and other perceived advantages resulting from the transaction;
Costs and potential litigation associated with the transaction;
The failure to obtain the approval of IntraLase's
stockholders;
The inability to obtain, or meet conditions imposed for, applicable regulatory requirements for the transaction;
The failure of either party to meet the closing conditions set forth in the definitive agreement;
The ability to retain key personnel before and after the transaction;
Each company's ability to successfully execute its business strategies;
The extent and timing of regulatory approvals, and the extent and timing of market acceptance of new products or product
indications;
Manufacturing or quality issues;
Litigation;
The procurement, maintenance, enforcement and defense of patents
and proprietary rights;
Competitive conditions in the industry;
Business cycles affecting the markets in which any products may be sold;
Fluctuations in foreign exchange rates and interest rates; and
Changes in economic conditions and in consumer spending indices.
Additional information concerning these and other risk factors can be found in the SEC filings of AMO and IntraLase, particularly in
the sections entitled "Risk Factors" in the companies' 2005 Form
10-K filings.
Advanced Medical Optics, AMO, Complete Moistureplus, CustomVue, Healon, ReZoom, Star S4, Star S4 IR, Tecnis, Verisyse, VISX,
Wavescan
Wavefront, and Whitestar
are trademarks of Advanced Medical Optics, Inc.  Amadeus is a trademark of SIS.  IntraLase,
IntraLase
Method and IntraLase
FS are trademarks of IntraLase
Corp.


AMO’S REFRACTIVE LEADERSHIP STRATEGY
Jim Mazzo
Chairman, President & CEO
3


AMO to Acquire IntraLase
Transaction represents ideal strategic fit, advancing AMO’s growth plan
to lead in ophthalmology’s premium segments
Uniquely positions AMO as the “Complete Refractive Solution”
Further establishes AMO as the
global refractive leader and definitive source for
refractive innovation and expertise
Benefits practitioners and patients globally by linking industry’s
most advanced LVC technologies to define a new standard of care
Ability to optimize our installed base and offer surgeons a comprehensive system for
providing custom all-laser LASIK that delivers superior outcomes and breaks down
consumer fear barriers
Combines R&D expertise in excimer laser, femtosecond laser and
diagnostics
Facilitates expansion into other therapeutic applications to drive future growth
Uses global infrastructure and core competencies to enhance
operating leverage
Realizes synergistic benefits of combining companies’
growth strategies, based on
global adoption of per-procedure model
4


10
20
80
70
60
50
40
30
EYE CARE
Contact Lens Care Solutions
Dry Eye Products
LASER VISION CORRECTION
Excimer Lasers
Wavefront Diagnostics
Femtosecond
Lasers
Microkeratomes
CATARACT / IMPLANT
Phakic IOLs
Multifocal IOLs      
Monofocal
IOLs
Phaco Systems
Viscoelastics
Glaucoma Implants
Vitreoretinal Systems
GLOBAL MANUFACTURING, SERVICE & EXPERTISE
AMO Vision Care Life Cycle
Transaction fortifies fundamental strategy to serve the full range of refractive
vision needs
Patient Age
5


The Complete Refractive Solution
Comprehensive combination of superior technologies and service
unmatched in the industry
6
Femtosecond
Lasers
WaveFront
Technologies
Micro-
keratomes
CLC & Dry
Eye
Products
OVDs
&
Phaco
Aspheric
IOLs
Multifocal
IOLs
Phakic
IOLs
Excimer
Lasers


Global LVC Market
2006-2011 CAGR of 7% driven by continuing conversion to customized,
all laser LASIK procedure
1%
67%
Source:  Market Scope Comprehensive Report on Global Refractive Surgery Market, November, 2006
17%
7
10%
2006:  $643MM
2011:  $893MM
Excimer
Lasers
& Procedures
Wavefront
Diagnostics
Femtosecond
Lasers
Conventional
Microkeratomes
Epi-LASIK
5%
<1%
60%
27%
8%
5%


U.S. Procedures by Segment
The percent of procedures performed in corporate-owned laser centers is
growing
0
500
1000
1500
2000
Institution-Owned
Corporate-Owned
Surgeon Owned
Surgeon-Owned
57%
Corporate-Owned 
38%
5%
Institution-Owned
Source:  Market Scope Comprehensive Report on the Refractive Market, November 2006
8
U.S. Procedure Share by Segment
Procedure Per U.S. Laser Center


Strategic Combination
Opportunity to capitalize on complementary technologies and models
Global femtosecond
laser leader
Innovative technology with clear clinical benefits  
Rapidly growing installed base providing high-margin
procedural revenue stream
Demonstrated growth potential of per-procedure model in
international markets
Expansion opportunities through new therapeutic
applications  
Global laser vision correction leader
Superior technologies; unsurpassed service and support
Efficient global infrastructure and distribution network
Targeted international expansion designed to duplicate
per-procedure model 
R&D resources focused on new refractive innovations,
including corneal and lens-based treatment options for
presbyopia
9


Defining a New Standard of LVC Care
Provides leadership in advancing the practice of medicine with total
systems approach; opportunity to grow market
Superior clinical outcomes
Enhanced safety profile
Less patient fear and improved
satisfaction
Increased surgeon profitability
Improved practice efficiency
Benefits of Custom All-Laser LASIK
10
Data sources on file


Wavefront-Guided LVC in the U.S.
Survey indicates that superior clinical outcomes continue to drive
adoption of custom procedures
0%
10%
20%
30%
40%
50%
Wavefront-guided is the best
procedure for all patients
Patients with higher levels of
spherical error
Patients with significant
higher order aberrations
Patients that request
wavefront-guided LASIK
Other
None of the above
Q2 2006
Q2 2005
Which of the following are indications for wavefront-guided ablation?
Source:  Market Scope Annual Refractive Surgery Survey, September 2006
11


0%
10%
20%
30%
40%
50%
60%
70%
Q2 03
Q3 03
Q4 03
Q1 04
Q2 04
Q3 04
Q4 04
Q1 05
Q2 05
Q3 05
Q4 05
Q1 06
Q2 06
Q3 06
AMO TTM Custom Mix
CustomVue™
treatment for low to
moderate myopes
Fourier wavefront upgrade, further improving
CustomVue™
treatment precision
CustomVue™
treatment for hyperopes
Iris Registration, providing enhanced treatment
alignment
CustomVue™
treatment for mixed
astigmatism
CustomVue™
treatment for
high myopes
Delivering Superior LVC Technology
Broad FDA-approved custom treatment range –
backed by practice
development and comprehensive customer support –
drives U.S. growth
Trends in CustomVue™
Mix of Procedures
12


Positive Impact on Retreatment
Rates
Surgeon experience shows how technological advancement translates
into reduced enhancement rates
<5%
CustomVue®
with Fourier Upgrade &
Iris Registration
~10%
CustomVue®
with Fourier Upgrade
20-25%
Conventional Ablation
Enhancement Rate
Procedure
Courtesy:  Mark Whitten, MD
Source:  Data presented at May 2006 ISRS/AAO meeting
by R.L. Lindstrom, MD
13
Lower
retreatment
rates
=
Improved patient satisfaction
Higher referral rates
Enhanced practice efficiency


International Expansion On Track
Success in replicating per-procedure model is evident in revenue growth
and other key metrics
$0
$1
$2
$3
$4
Q106
Q206
Q306
33% rise in international STAR S4IR
laser and WaveScan
Wavefront
®
diagnostic system placements*
50+% of international installed base
now custom-capable
72% increase in international
procedure revenue*
Focused on high-potential markets in
Europe and Asia
Continuing to develop international
BDM and customer service capability 
(In millions)
$2.5
$3.7
$3.2
AMO Quarterly International
Procedure Revenue Trend
* For nine months ended Sept. 29, 2006, compared to same period in 2005
14


International Opportunity
European surgeons show growing preference for AMO and IntraLase
technology 
-5%
5%
15%
25%
35%
45%
55%
Others
Zeiss/Meditec
Wavelight
B&L
Alcon
AMO
-5%
5%
15%
25%
35%
45%
55%
Others
B&L
Moria
AMO
IntraLase
Use most often
Would liket to use/acquire
Source: Leaming
Study 2005 Survey of ESCRS Members, June 2006
Growing surgeon interest in wake of
Athlete LVC international expansion
Strong surgeon interest
demonstrates
technology’s appeal
Excimer
Laser Preferences
Keratome
Preferences
15


U.S. LASIK Surgeon Outlook
Expect rise in their WFG procedures using femtosecond
keratomes
and
corresponding decline in conventional LASIK procedures
0%
5%
10%
15%
20%
25%
30%
35%
Standard LASIK with
conventional microkeratome
Standard LASIK with
femtosecond keratome
WFG LASIK with
conventional microkeratome
WFG LASIK with
femotsecond keratome
Q205
Q206
What are your expectations for the percentage composition of your
refractive procedures during 2007?
Source:  Market Scope Annual U.S. Refractive Surgeon Survey, September 2006
16


UCVA
-0.03 ±
0.11
Mechanical  (n=346)
-0.08 ±
0.10
Mean ±
SD
Femtosecond  (n=240)
51%
82%
72%
89%
10%
27%
0%
25%
50%
75%
100%
20/12.5+
20/16+
20/20+
20/40+
p=0.00
Clinical Results Confirm Advantages
Study pairing AMO’s
StarS4TM
CustomVueTM
procedure with IntraLaseTM
showed faster recovery, better UCVA, better contrast acuity
UCVA --
1 Day PostOp
Data from clinical study by Capt. Steve Schallhorn, Naval Medical Center, San Diego; June 2006
99% 100%
17


INTRALASE OVERVIEW
Bob Palmisano
President & CEO
18
18


Key Benefits for IntraLase
Transaction creates a refractive powerhouse
-
Two biggest names in refractive surgery come together to expand
the market
-
Companies offer complementary products and services
IntraLase customers and patients worldwide will benefit from
the industry’s most advanced LVC technologies
-
Surgeons offered a suite of state-of-the-art products with proven profitability
-
Patients provided with the best refractive offerings for superior visual outcomes
Combines companies’
strength and experience in R&D
-
Brings together two innovative cultures
19


About IntraLase
Provides LASIK surgeons with outcomes superior to bladed
microkeratome
518 lasers installed at September 30, 2006
Over 1,000,000 procedures sold worldwide
Business model driven by high-margin annuity streams
Proven success collecting international procedure fees
Rapid adoption
U.S. penetration advancing
Large addressable global market
Therapeutic applications recently launched
20


The IntraLase Method™
21


IntraLase Procedure Trends 
0
125
250
375
2002
2003
2004
2005
2006
U.S.
International
362,000
Thru 9/30/06
(in thousands)
30,000
84,000
192,000
243,000
30,000
80,000
4,000
0
160,000
32,000
162,000
81,000
200,000
162,000
22


The IntraLase Method™:
U.S. Market
Share Steadily Advancing
0%
5%
10%
15%
20%
25%
30%
Q4 02
Q4 03
Q4 04
Q4 05
Q4 06
5%
10%
16%
25%
IntraLase Share
IntraLase Share
of Corneal Flaps
of Corneal Flaps
30%
10%
5%
23
IntraLase
estimates
[Estimate]


The IntraLase Method
Better medicine…..compelling patient outcomes
Provides LASIK surgeons with ability to create thin, uniform flap
-
Fewer complications and side effects = happier patients
Recent Defense Logistics Agency contract award for U.S.
Military and civilian personnel
Better business…..tangible surgeon benefits
Helps more patients decide to have the procedure
-
Bladeless technology reduces “fear factor”
for patients
-
Nearly one half of practices surveyed reported an increase in procedures
(SM²
Consulting, 2005 Survey)
-
79% credited IntraLase for increase (26 more procedures per 100 consults)
Provides surgeons with better, more profitable procedure
24


COMING TOGETHER
Jim Mazzo
Chairman, President & CEO
25
25


Why the Time is Right
Advances AMO’s
core strategy for leadership in premium ophthalmic
market segments
Combine Advanced CustomVue
and FS technology in total
systems approach that benefits practitioners and patients
Maximize Intralase’s
strong and growing foundation and first-
mover advantage 
Strengthen international expansion strategy
Leverage R&D competencies and deliver new  technologies
aimed at refractive market
26


Seizing the Opportunity
Plan for capitalizing on our differentiable position
Define custom all-laser LASIK as standard of care
>
Maximize existing infrastructure
>
Demonstrate compelling clinical benefits through Phase IV research
>
Deploy practice marketing tools that drive a coherent message
>
Emphasize surgeon economics  
Help surgeons build comprehensive refractive practices
>
Offering a full suite of corneal and lens-based technologies
Cross sell existing surgeon customers and expand presence in corporate centers
>
Approximately 20% of AMO’s
US customers are also IntraLase
customers and
approximately 40% of IntraLase’s
customers are current AMO customers
>
Both companies have the foundation to build on in the corporate-owned segment
Expand international footprint
>
AMO direct in 24 countries; IntraLase
direct in 7
27


Integration Planning
Goal is to leverage combined strengths and make transaction seamless
to customer
Jane Rady and Bernie Haffey
to co-lead integration oversight
Building on fundamental principles used and lessons learned in VISX
and Pfizer acquisitions
Ensure seamless transition for customers with minimal disruption
Careful analysis to determine best practices from both organizations
No loss of focus on other parts of business
28


OPERATIONS AND FINANCIAL OVERVIEW
Randy Meier
Executive Vice President, Operations
CFO
President, Global Eye Care
29
29


AMO Strategic Objectives
Designed to build on core strengths and deliver sustained, profitable
growth
Eye Care
Laser Vision Correction
Cataract/Implants
Provide superior, differentiated technologies that serve premium
markets and deliver high margins
Focus pipeline on new innovations with market-changing
potential
Achieve greater leverage of our global infrastructure and
distribution network 
30


Transaction Summary
Agreed to buy IntraLase
for $808 million
$25 per share all-cash offer for all of IntraLase’s
fully diluted
shares
Transaction expected to close by early Q207
Conditions to closing
-
IntraLase
stockholder approval
-
Customary regulatory approvals
-
Other conditions of merger agreement
31


Financing Summary
At Signing:
>
Committed all-bank financing provided by UBS, Bank of
America and Goldman Sachs
>
Combination revolver and term loan, fully pre-payable, no
financing fees until transaction closing and funding
At Closing:
>
Expectation is that between signing and closing, AMO will
amend and restate revolver, raise $200-$300 million in the
syndicated bank market and issue $200-$300 million in high-
yield notes
High-yield transaction would close simultaneous with
IntraLase
transaction
32


AMO Credit Profile
Current AMO Debt Pre-Closing
Bank Revolver
18.8
Convertible Notes
851.1
2.5%     due 2024      246.1
1.375% due 2025      105.0
3.25%   due 2026      500.0
Total
$869.9
Debt/Adjusted LTM EBITDA
2.9x
Pro Forma Debt and Leverage at Closing (est. 3/31/07)
Bank Revolver
187.5
Bank Term Loan
350.0
High Yield Notes
250.0
Convertible Notes
851.1
Total
$1,638.6
Debt/LTM Adjusted EBITDA
5.0x
Estimated 2008 Debt/LTM Adjusted EBITDA
4.0X
Dollars in millions
33


Integration Synergies
Estimated annualized synergies of $25-$30 million
>
Approximately two-thirds derived from cost savings, primarily
operating expenses
Expect to realize $10-$15 million by year-end 2007
Expect to realize full benefit in 2008
34


LVC Sales
Business unit’s sales would represent to represent more than 30% of
AMO’s
total consolidated sales on pro forma basis
LVC
22%
Eye Care
28%
35
AMO Sales Mix YTD Q306
Pro Forma Sales Mix YTD Q306
Cataract/Implant
45%
LVC
31%
Eye
Care
24%
Cataract/Implant
50%


2007 and 2008 Guidance
36
$1.40-$1.55
$1,150-$1,175
2007
$2.25-$2.40
Adjusted EPS
$1,350-$1,370
Revenue (in millions)
2008
Guidance is provided on a non-GAAP basis.  For information on use of non-GAAP financial measures, see
“Investors”
at www.amo-inc.com, in “Historical Financials”
under “Investor Resources”
.
Expect transaction to add approximately $30 million in annualized
amortization, which would bring total annual amortization to
approximately $70 million, or approximately $0.70 per share after tax. 


Acquisition-Related Charges
Total acquisition-related charges and integration costs related to the
transaction estimated to be approximately $70 million 
-
approximately 50% expected within 120 days of closing
includes severance, insurance and advisor costs
-
the remainder expected to be taken in 2007
includes IP transfer, additional capital expenditures and other
integration costs
37


SUMMARY
Jim Mazzo
Chairman, President & CEO
38


Key Takeaways
Positions AMO as the
“Complete Refractive
Solution”
Defines a New
Standard of Care
Fortifies fundamental strategy to serve the full
range of refractive vision needs
Comprehensive combination of superior
technologies and service unmatched in industry
Provides leadership in advancing the practice of
medicine with total systems approach
Opportunity to grow market
Advanced technologies and industry experience
to address the needs of the refractive surgeon
Potential for expansion into new therapies
Combines R&D
Expertise and
Competencies
39
Improves Operating
Leverage
Optimize domestic and international installed
bases
Continued global adoption of per-procedure model
Operating margin expansion


Our
guidance
for
adjusted
EPS
for
2007
and
2008
is
provided
on
a
non-GAAP
basis.
The
company’s
adjusted
EPS
guidance
excludes
the
impact
of
charges or write-offs associated with acquisitions, reorganization or recapitalizations, and unrealized gains or losses on derivative instruments. The
company believes this presentation is useful to investors to conduct a more meaningful, consistent comparison of the company’s ongoing operating
results.
This
presentation
is
also
consistent
with
our
internal
use
of
the
measure,
which
we
use
to
measure
the
profitability
of
ongoing
operating
results against prior periods and against our internally developed targets. We believe that our investors also use this measure to analyze the
sustainable
profitability
of
the
on-going
business
operations.
The
economic
substance
related
to
our
use
of
adjusted
EPS
is
our
belief
that
the
appropriate analysis of our profitability cannot be effectively considered while incorporating the effect of unusual items and charges that have not
been experienced in prior periods. The company is not able to provide a reconciliation of projected adjusted EPS to expected reported results due to
the unknown effect, timing and potential significance of special
charges, and our inability to forecast charges associated with future transactions and
initiatives. Our guidance for adjusted EPS includes the impact of transaction-related intangible amortization and stock-based compensation expense
now being recognized under Statement of Financial Accounting Standards No. 123R (FAS123R) issued by the Financial Accounting Standards
Board.
Our outlook for adjusted cash EPS for 2008 is provided on a non-GAAP basis.  The company’s adjusted cash EPS outlook represents the adjusted EPS
described above excluding the impact of transaction-related intangible amortization. The company believes the presentation of adjusted cash EPS is
useful to investors to analyze the company’s operating results without non-cash charges, which the company believes are not necessarily reflective of
the performance of its underlying businesses. We believe that our investors also use this measure to analyze the sustainable profitability of the on-
going business operations. The economic substance related to our
use of adjusted cash EPS is our belief that the appropriate analysis of our
profitability cannot be effectively considered while incorporating the effect of unusual items and non-cash charges. Adjusted cash EPS is not a
liquidity measure and does not equate to cash flows from operating activities under GAAP. The company is not able to provide a reconciliation of
projected adjusted cash EPS to expected reported results due to the unknown effect, timing and potential significance of charges, and our inability to
forecast non-cash charges associated with future transactions and initiatives.
These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. These non-GAAP financial
measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results provide a more complete
understanding of factors and trends affecting our business. These non-GAAP measures should be considered as a supplement to, and not as a
substitute for, or superior to, the corresponding measures calculated in accordance with generally accepted accounting principles.
Use of Non-GAAP Measures
40


Solicitation of Proxies
IntraLase
intends to file with the SEC a proxy statement and other relevant materials in connection with the proposed transaction. The proxy
statement will be mailed to the stockholders of IntraLase.  Investors and security holders of IntraLase
are urged to read the proxy
statement and the other relevant materials when they become available because they will contain important information about IntraLase
and the proposed transaction.  The proxy statement and other relevant materials (when they become available), and any other documents
filed by IntraLase
with the SEC, may be obtained free of charge at the SEC's web site at www.sec.gov.  In addition, investors and security
holders may obtain free copies of the documents filed with the SEC by IntraLase
by contacting IntraLase
Investor Relations at
ir.intralase.com
or via telephone at (949) 859-5230.    Investors and security holders are urged to read the proxy statement and the other
relevant materials when they become available before making any voting or investment decision with respect to the proposed transaction.
The directors and executive officers of IntraLase
may be deemed to be participants in the solicitation of proxies
from the stockholders of
IntraLase
in favor of the proposed transaction. Information about the directors and executive officers of IntraLase
and their interests in the
proposed transaction will be available in the proxy statement and other relevant materials to be filed with the SEC when they become
available.
41