ReNu recall gives Bausch & Lomb a black eye on Wall Street

Wednesday, 27 September 2006

Mounting evidence that Bausch & Lomb’s popular ReNu with MoistureLoc contact lens solution may cause the eye infection Fusarium keratitis in some users is having an effect on investors. Shares of the company dropped nearly 15% the day after it agreed to halt shipments of ReNu, and at least five analysts downgraded the stock. The Food and Drug Administration and Centers for Disease Control and Prevention were investigating the case, which found that most of those who had the fungus used ReNu. The company today posted three related news releases on its website and linked to the American Optometric Association’s guidelines for contact lens care. One public relations expert says the company, which is now the target of many class action ReNu lawsuits in Florida, New York, Rhode Island and other states, did the least it could in response to early reports.