Shares of Advanced Medical Optics (NYSE: EYE)fell more than 12 percent on Tuesday after the company said it would recall one of its contact-lens solutions following a report linking the product to a rare but serious cornea infection.
Shares of the Santa Ana, Calif.-based eye-care company lost $5.49, or 13.7 percent to reach $34.71 in afternoon trading on the Nasdaq Stock Market.
Advanced recalled its Complete MoisturePlus Solution.
The company acted after receiving information from the U.S Centers for Disease Control and Prevention (CDC) that patients developed Acanthamoeba keratitis (AK), a water-borne organism which can contribute to serious eye infections.
The CDC estimated that users of the product were seven times more likely to contract the bacteria after interviewing 46 patients who were diagnosed since 2005.
A total of 39 of those patients were soft contact lens wearers. Of those, 21 reported using Complete MoisturePlus products.
There is no evidence to suggest that today's voluntary recall is related to a product contamination issue and this does not impact any of AMO's other contact lens care products, including our family of hydrogen peroxide disinfecting solutions, the statement said.
Rival Bausch & Lomb recalled its lens cleaner ReNu with MoistureLoc last year after the solution was linked to a potentially blinding fungal infection. The action resulted in charges of $25 million as well as $19 million in lost revenue from returns and rebates.
Bausch is now a takeover target.
Last week, Advanced Medical said it was considering making an offer to buyout Bausch. If it does make the offer, the company will be competing with a $3.67 billion bid by Warburg Pincus LLC at $65 per share.