Special Situation Investing

Thursday, April 13, 2006

(BOL) Bausch & Lomb Plummets on Federal Investigation

1:55 PM April 14,2006

Bausch & Lomb has issued a general recall on the ReNu with MoistureLoc (lens solution) product. At the same time, the company has indicated they are committed to fixing the products and just seem to want to get this behind them. To put things into perspective:

"MoistureLoc hit stores in late 2004 and generated $45 million in U.S. sales last year -- a small portion of Bausch & Lomb's more than $2 billion in annual revenues. The company also makes contact lenses, ophthalmic drugs and vision-correction surgical instruments."

12:30 PM April 13,2006
Bausch & Lomb is currently being investigated to see if a batch of it's len solution may cause fungal infections in users. It is currently under pressure to issue a large scale recall of it's contact lens solution and in fact many retailers have begun to pull the lens solution off their shelves. In additon the company has delayed filing it's 10-K. As a result it's stock price has plummetted by ~1/3.

In recent news, Sears has announced that they are pulling BOL's products from it's shelves.


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