Practice Watch
Tips And News You Can Use

B&L Takes Additional Steps to Boost Profits
But Patent Ruling Will Adversely Impact Second Half.

Taking strong action to put an end to several years of disappointing profits, Bausch & Lomb CEO Ronald L. Zarrella announced additional moves designed to streamline the company and improve operating earnings by $90 million by 2005.

Zarrella, who took the helm of B&L last November, is already seeing some results from his earlier cost-saving and business-building initiatives. Bausch & Lomb surprised Wall Street by reporting earnings of 40 cents a share for the second quarter, beating analysts' estimates by 6 cents.

	In IOLs, Bausch & Lomb will focus on its newer models, such as the Hydroview.

The good news was tempered by Bausch & Lomb's announcement that it's transferring production of its 30-day and night continuous wear PureVision contact lenses from the United States to Ireland while it appeals a U.S. District Court patent infringement ruling. The Court determined that the B&L lens infringes on CIBA Vision's patent covering silicone hydrogel materials and ordered a halt to U.S. production of PureVision lenses. The appeals process could take 6 to 18 months. Bausch & Lomb said the adverse ruling is expected to reduce company earnings by 12 to 15 cents a share in the second half of this year.

But Zarrella said the company's overall outlook has brightened.

"We are making progress in returning Bausch & Lomb to a stable and predictable company with improved profitability," said Zarrella. "Our new products are gaining momentum, our restructuring efforts are delivering savings, and we continue to invest in new products and development opportunities to build future growth."

Though strong performances in contact lenses, lens care products and pharmaceuticals helped B&L report second quarter revenue 14% ahead of the same quarter a year ago, Zarrella is continuing to aggressively cut costs and reduce headcount.

To that end, B&L will close or consolidate facilities that produce contact lenses and surgical products. Planned closures include plants making RGP contact lenses in Spain and Korea, and a microkeratome manufacturing facility in Miami. In addition, the company will rationalize or discontinue certain low-volume contact lens and IOL product lines, including most of its PMMA IOLs. Instead, the company will focus on producing the more popular foldable IOLs that the company has developed in recent years.

REFRACTIVE SURGERY UPDATE

Custom ablation recommended. The FDA Ophthalmic Devices Panel has unanimously recommended approval for Alcon's CustomCornea wavefront-guided laser vision correction system for myopia between 0 and -7D. The panel did suggest revised labeling in regard to efficacy claims, but its recommendation is a major step in gaining final FDA approval for Alcon's LadarVision 4000 excimer laser and LadarWave wavefront measuring device in a combined system approach to laser vision correction.

Alcon said it's continuing clinical trials using its laser/wavefront system to treat myopic astigmatism, hyperopia with and without astigmatism, and other ocular irregularities.

ICL approvals. STAAR Surgical Company has received FDA approval for the preclinical and manufacturing modules of its premarket application (PMA) for its ICL phakic IOL. The final module, which covers clinical data, is expected to be submitted to the FDA later this year.

LASIK pricing. LCA-Vision, which operates laser vision correction centers, said the average price per procedure rose to $1,094 in the second quarter of this year, a 17% increase over the $934 achieved during the same quarter a year ago. The company said this is the sixth consecutive quarter in which the average price has increased. The company has also opened a new center to serve the Raleigh-Durham area of North Carolina.

Lin leaves. Ophthalmic laser developer SurgiLight has terminated the employment contract of company founder J.T. Lin, Ph.D. SurgiLight had placed Dr. Lin on administrative leave in April after the Securities and Exchange Commission charged him with attempting to manipulate the price of the company's stock.

Educating Patients with eyeMaginations
Animation Facilitates Doctor/Patient Communication.

You've just diagnosed cataracts in an elderly patient and you're explaining the condition and its treatment for perhaps the 5,000th time in your career. You do your best to explain the situation, answer questions and provide printed material for the patient to take home. But your time is limited and you have to move on. How much of what you said did the patient truly understand? You're not really sure.

EyeMaginations animation enables patients to more easily understand eye problems and procedures.

EyeMaginations, a developer of ophthalmic educational software based in Towson, Md., believes it can help you do a better job of both educating and communicating with your patients. The company uses colorful, cartoon-like animated "lectures" that can be shown on office computers or TV screens to teach patients about such topics as the anatomy of the eye, refractive errors, ocular pathologies and clinical procedures. It also develops animated messages you can use in your dispensary to let patients know about the features and benefits of the optical products you have to offer.

"Doctors want to do a good job of educating their patients, but what's routine to a doctor is new to the patient," says Rick Gettier, eyeMaginations director of sales and marketing. "Quite often, patients don't retain much of the information the doctor gives them. With eyeMaginations animation, patients get simple, visual explanations. The information retention rate has been proven to be very high. And the doctor can sit right there in the exam room with the patient, explaining what the patient is seeing on the screen and even drawing on the screen to illustrate a key point."

EyeMaginations animations can be used in waiting areas, exam rooms or in the dispensary to achieve a variety of educational and marketing goals.

"Patients appreciate getting information they can easily understand, and offices operate more efficiently because physicians and staff don't have to spend as much time on patient communication and education," concludes Gettier.

EyeMaginations charges $1,500 for a lifetime license to use its software and $600 a year for all new animations. You supply the computer hardware and TVs. For more information, log on to www.eyeMaginations.com

IN THE NEWS

Dry AMD treatment. TLC Vision, which is best known as a laser vision correction company, has joined with Vascular Sciences Corporation in a 50/50 joint venture to commercialize Vascular Sciences' Rheopheresis blood filtration process for treating the dry form of AMD.

Rheopheresis is a process that filters from the blood certain plasma proteins and lipoproteins that are believed to contribute to the development of AMD.

According to TLC Vision, early results from a clinical study involving 43 patients indicate that Rheopheresis has shown effectiveness in halting vision loss in most patients, and actually improving vision and reducing drusen in some patients.

New headquarters. Advanced Medical Optics (AMO), the maker of ophthalmic surgical devices and contact lens care products, has located its global headquarters in a new, 171,000-square-foot facility in Santa Ana, Calif. The company was recently spun off from Allergan.

Vision screening award. Prevent Blindness America and Allergan presented the Tiger Woods Foundation with an award for organizing a free vision screening for children who recently attended the Coca Cola/Tiger Woods Foundation Junior Golf Clinic at Disney' s Palm and Magnolia golf courses in Orlando, Fla.

HIPAA deadline. If your practice isn't already in compliance with the HIPAA Transaction Regulations, which create uniform standards for claims submissions and other electronic transactions, you have until Oct. 16 to file a request for an extension with the Department of Health and Human Services. Your request must include a detailed plan for complying with the Transaction Regulations by Oct. 16 of next year.

Log on to www.cms.gov/hipaa/hipaa2/default.asp for help in submitting this plan. Mark Kropiewnicki of the Health Care Group, Inc., says many practices aren't yet in compliance and will need to request extensions.