AMO announces financial effect of lens care recall

Advanced Medical Optics (AMO) has this week predicted the expected financial effect resulting from its recent recall of some of its contact lens care products. The company expects revenues for the rest of this year and 2007 to be reduced by ?40-45 million (21-23.5 million pounds).

AMO predicts revenues for 2006 to be in the region of $985 million to $1 billion, down from earlier predictions of $1.01-1.02 billion, with a similar reduction forecast for 2007.

This estimated reduction has been attributed primarily to product returns, shortages of stock and a lost market share in the affected regions – which they predict will be temporary.

Jim Mazzo, chairman, president and chief executive officer of AMO, reported that the recall resulted from a production-line issue, rather than concerns regarding the formulation of the company’s products.

“While we believe the likelihood of patients experiencing an adverse reaction is low based on our investigation to date, we are implementing this voluntary recall as a precautionary measure,” he said.

He added that all manufacturing has been ceased at its China facility for the undertaking of cleaning and sanitising procedures.

AMO had this week announced a voluntary recall in some regions of selected batches of its Active Packs and 12-ounce Complete MoisturePlus multipurpose lens care solution.