SANTA ANA, Calif.--Advanced Medical Optics’ (NYSE: EYE) December recall of certain lots of its 12-ounce Complete MoisturePlus multipurpose contact-lens care solution and Active Packs will cost the company $20 million to $25 million in recall-related costs this year, along with $20 million to $25 million in lost sales, Advanced Medical Optics said last week.

In the fourth quarter of 2006, the recall had a $25 million impact on financial results, including approximately $10 million in returns and $15 million in lost sales. In addition, the company incurred approximately $15 million in costs associated with the recall in the fourth quarter.

Because of the recall as well as declines in hydrogen peroxide solution sales and lost sales associated with planned product rationalizations, Advanced Medical Optics’ sales in its eyecare category declined 13.1 percent for the year, to $261.6 million. The same factors caused eyecare sales to drop 20.2 percent, to $53 million, in Q4, the company said.