Shares fell 2 percent on Wednesday amid an analyst downgrade and fresh concerns about a potential link between the company's ReNu
contact lens solution and a rare fungal infection.
Harris Nesbitt analyst Joanne Wuensch said in a research note on Wednesday that potential problems with ReNu may be more widespread than initially thought.
Shares of Bausch & Lomb, which also makes
contact lenses, were down $1.21 at $59.20 in morning New York Stock Exchange trade.
The company last week said it was working with health authorities globally to determine the cause of an increase in a rare fungal infection among contact lens wearers that first surfaced in parts of Asia.
Authorities in Singapore linked a number of cases of the infection to use of the ReNu solution, but did not say that was the cause.
"It now appears to us the problem may be broader than we had originally expected, particularly in the United States," Wuensch, who has a "neutral" rating on the stock, wrote in a note to clients.
Wuensch pointed to a health advisory from the Pennsylvania Department of Health, which is looking into reports of at least five cases of the infection among Philadelphia-area residents. Wuensch said that added to a number of cases already disclosed in Florida.
Bausch & Lomb spokeswoman Meg Graham said she was unaware of the Pennsylvania health alert, but added: "We are working as quickly and thoroughly as possible in collaboration with preeminent institutions around world to better understand the incidence and cause of this condition."
Bear Stearns on Wednesday cut its rating on Bausch & Lomb to "peer perform" from "outperform," citing a number of factors, including emerging uncertainties in the lens care business due to the concerns about ReNu contact lens solution.
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04-05-2006, 09:38 AM
Bausch and Lomb Shares Fall on Analyst Concerns
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