Bausch & Lomb's Fungus Woes (BOL)

Apr.11.06 | About: Valeant Pharmaceuticals (VRX)

Bausch & Lomb Inc. (BOL) got another whooping in after hours action Monday after it agreed to stop shipping its ReNu MoistureLoc brand contact lens solution because myriad users have reported getting a nasty eye infection.

The FDA said over 100 preliminary reports of a fungal infection had been reported to 17 different CDC Prevention centers. Although the FDA said it was not aware of a direct link between the Fusarium fungus and any specific product, in 26 cases thus far, patients used Bausch & Lomb's ReNu MoistureLoc solution.

The halt in shipments was another low blow for Bausch & Lomb, which said last month it was delaying issuing its 2005 annual report amid some accounting mishaps.

The company's shares tapped a new 52-week low on Monday, even after a bullish story on the firm popped up in this past weekend's Barron's. Barron's was right in thinking that investors may be over-reacting to BOL's fungus-related woes, but they forgot to mention that the overall growth picture at BOL looks bleak.

BOL 1-yr Chart

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