Although Conjunctivitis is a fairly common infection that usually does not lead to anything serious, if left untreated it can progress into a potentially life-threatening illness. Dogs that already suffer from a weakened immune system, either as a result of injury or other illness, are much more prone to developing a protracted, more harmful case of Conjunctivitis. One of the dangerous symptoms of a case of dog pinkeye that has progressed for too long is a perforated cornea. The infection can spread from the membranes surrounding the eyeball to the eyeball itself, where it can corrode the tissue and lead to small holes or perforations. This process of perforation can lead to your dog having difficulty with its vision, and in some extreme cases has been known to cause blindness
Excerpt taken from here
http://pethealth.petwellbeing.com/wiki/Dog_Pink_Eye