The Cooper Companies Inc. (COO) revealed that its women’s healthcare unit – CooperSurgical – has acquired EndoSee Corporation for approximately $44 million. Headquartered in Los Altos, CA, EndoSee is a privately held company that specializes in the development of disposable office-based hysteroscopy systems.
With the acquisition of EndoSee, The Cooper Companies intends to build upon its office/surgical strategy of bringing high quality products to the Obstetrics and Gynaecology practice (OB/GYN) while leveraging its infrastructure.
CooperSurgical focuses on supplying women's health clinicians with market leading products and treatment options to improve the delivery of healthcare. It now plans a U.S. launch of the EndoSee Office Hysteroscope in mid-fiscal 2015. Notably, the device was cleared by the U.S. Food and Drug Administration in 2013.
The acquisition of EndoSee is expected to be neutral to The Cooper Companies’ fiscal 2015 earnings per share excluding one-time charges and deal-related amortization.
In Aug 2014, The Cooper Companies acquired Sauflon Pharmaceuticals Ltd. – a European manufacturer and distributor of soft contact lenses and solutions – for approximately $1.2 billion.
The purchase of Sauflon positions The Cooper Companies at the forefront of the single-use market – the most rapid growing segment within the soft contact lens business, thus adding to the company's growth profile, earnings and sales.
Notably, The Cooper Companies reported strong third-quarter fiscal 2014 results in Sep 2014 and upgraded its fiscal 2014 guidance. Third-quarter adjusted earnings per share rose 9.2% to $1.90 from the year-ago level of $1.74 while revenues came in at $432.5 million, reflecting a rise of 5.0% from $412.0 million in the year-ago quarter.
The Cooper Companies expects fiscal 2014 adjusted earnings per share in the band of $7.34 to $7.44, which is higher than the earlier range of $6.80 to $7.00. The current Zacks Consensus Estimate of $7.40 lies within the guided range.
The company also projects higher total revenues of $1,725–$1740 million for fiscal 2014 compared with the prior guidance of $1,685–$1,725 million. The current Zacks Consensus Estimate of $1,733 million lies within the guided range.
Currently, The Cooper Companies sports a Zacks Rank #1 (Strong Buy). Other well-performing stocks in the medical/dental supply industry include Cardinal Health, Inc. (CAH), DENTSPLY International Inc. (XRAY) and Henry Schein, Inc. (HSIC). All these stocks carry a Zacks Rank #2 (Buy).
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