Who Gains, Who Loses From the Bausch & Lomb Recall? (BOL, JNJ, COO, ACL, AGN, EYE, CTAC)

by: Jon Ogg

Bausch & Lomb Inc. (BOL) is down 16% today after it announced it is halting shipments in the US of its ReNu MoistureLoc contact lens solution. There was already writing on the wall last week after Singapore banned shipments of this product.

There are other companies that could be affected by this -- here is a partial list:

This blowup is said to be good for Johnson & Johnson (NYSE:JNJ) according to a UBS note, but JNJ is likely too diversified to be a pure-play;
Cooper Companies, Inc. (NYSE:COO) makes contact lenses;
Alcon Inc. (NYSE:ACL) treats eye infections and makes contact lense solutions;
Allergan Inc. (NYSE:AGN) also has contact lens solutions, although it is still somewhat diversified;
Advanced Medical Optical (EYE) is the eye laser company;
TLC Vision Corporation (TLCV) does the actual laser sugeries at its centers;
1-800-Contacts (CTAC) could have issuesif this gets too widespread and if it starts to impact contact lens sales in general.

Goldman Sachs, Bear Stearns, JPMorgan, R.W. Baird and First Albany have all downgraded BOL pre-market. The one analyst who deserves a pat on the back is Bank of America's David Maris, who already had a SELL rating that he maintained this morning.

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