Bausch & Lomb announced on Tuesday that it had reduced its net profit guidance by as much as 80 percent, blaming the downgrade on a worldwide recall of its eye-care contact lens cleaner.
The New York based eye care company had stated its net profit guidance would be $70-$80 million compared to a pre-tax estimate of $325 to $335 million given in October 2005, according to its regulatory filings. The loss was blamed on the recall of the MoistureLoc solution, a cleaning product for contact lens. The product had the potential to increase the risk of blinding the eye.
â€œWe find ourselves in a position where the safety of one of our products, ReNu with MoistureLoc manufactured at our United States plant, is in question,â€ said Bausch & Lomb Chairman and CEO Ron Zarrella. â€œHowever, in the cases of infections reviewed to date, the majority of patients reported using ReNu with MoistureLoc manufactured at our U.S. factory.
The recall was damaging to the company. MoistureLoc solution generated $45 million in sales within the U.S. market, and the lost revenue put a dent in the lens care division. The company also faced declining sales as questions were raised by consumers about the quality of their other products.