Crisis Management at Bausch & Lomb (B): The 'ReNu with Moistureloc'
Debacle
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : MKTG171
Case Length : 19 Pages
Period : 2005-2007
Pub Date : 2007
Teaching Note :Not Available
Organization : Bausch & Lomb
Industry : Eye Care
Countries : Europe, USA, Asia
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Excerpts
Background Note
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B&L's history can be traced back to 1853 when a German immigrant, John Jacob
Bausch (Bausch), set up a small optical goods shop in Rochester, New York, USA.
As the business grew, Bausch formed a partnership with his friend Henry Lomb.
Initially, B&L manufactured rubber eyeglass frames and other optical products.
Over the years, B&L became widely popular due to its technologically superior
optical products. The company also introduced innovative optical products such
as the first soft contact lenses (in 1971). As of April 2006, B&L was the
largest global provider of eye care products. The product line of B&L included
Vision Care, Surgical, and Pharmaceuticals...
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B&L Withdraws 'ReNu Moistureloc'
On May 15, 2006, B&L announced that it had permanently recalled MoistureLoc
from the market worldwide (Refer to Exhibit II for the B&L press release
announcing the withdrawal of ReNu with MoistureLoc). This was because on May
11, 2006, officials of B&L met FDA and said that its internal investigations
had suggested that under "certain unusual circumstances," MoistureLoc could
increase the risk of keratitis. It told FDA that on the basis of these
investigations, it wanted to recall the product globally...
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'ReNu Moistureloc' Finally Implicated?
In August 2006, the CDC investigators published a research report
entitled Multistate Outbreak of Fusarium Keratitis Associated with use
of Contact Lens Solution in the August 23/30 edition of the Journal of
the American Medical Association (JAMA). The report challenged the
argument forwarded by B&L that poor lens care practices adopted by the
users were responsible for the infection. The report claimed that
individual user practices were not relevant in the incidences of the
fungal infection... |
B&L's Business affected by the Debacle
MoistureLoc was a US$100 million-a-year brand in 2005. In the US alone, it was
estimated that out of the 30 million odd people who wore contact lenses, about
2.3 million used MoistureLoc. The recall meant that B&L would lose a major
driver of its revenue. But the impact went beyond that and affected the
company's entire lens care business. The controversy surrounding MoistureLoc
took its toll on B&L's market share in the lens care market and share prices
even before the product recall...
Excerpts
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