Advanced Medical Optics Inc. saw its shares hit a new low Thursday, a day after the Santa Ana-based contact lens and eye device maker said the launch of a new lens could be delayed because of regulatory concerns.
The company said late Wednesday that the Food and Drug Administration said it needs to expand its clinical trial of Tecnis Multifocal intraocular replacement lens by getting more people to participate.
Advanced Medical said the request may push back the launch of Tecnis by a year to 18 months.
Delaying Tecnis puts Advanced Medical at a “strategic disadvantage as other rivals improve footing in the time-sensitive emerging U.S. multifocal (lens) marketplace,” said Lawrence Keusch, a Goldman Sachs & Co. analyst, in a report.
Shares of Advanced Medical fell 3.8% to $34.35 Thursday and hit a new low of $32.71 earlier in the day. The device maker’s shares are off more than 20% since September.
Alcon Inc.,a Nestl & #233; SA eye care and device unit that has more than 500 workers in Irvine,saw its shares rise almost 4% Thursday after analysts said it would gain from Advanced Medical’s lens delay.
“This clearly benefits Alcon, which we prefer for its leading, diversified portfolio,” said Andrew Swanson, a Citigroup analyst, in a research note.
Another analyst, Peter Bye of Wachovia, said in a research note that Advanced Medical’s recent recall of a contact lens solution also benefits Alcon.
Advanced Medical recalled nearly 3 million units of its Complete MoisturePlus multipurpose contact lens solution and Active Packs because of contamination at its Chinese plant.
The majority of the recalled lens solutions was distributed overseas,only about 183,000 of the units made it to the U.S.
