CooperVision, a segment of The Cooper Companies Inc. (COO), which holds the number three position in the $6 billion global contact lens industry, recently announced the U.S. launch of the Biofinity Multifocal at the American Optometric Association (“AOA”) meeting in Salt Lake City, Utah.
The Biofinity Multifocal is the newcomer in the Biofinity range of 30-day replacement contact lenses. This lens contains elements from the Biofinity Asphere as well as Toric lens material with the well established Balanced Progressive Technology.
CooperVision also showcased its latest simplified fitting process. Through team-work with optometrists, CooperVision has come up with a simpler process to make it easier for eye care professionals to cater to the needs of users. CooperVision confirmed its latest lens fitting protocol through lab testing conducted by optometrists.
Biofinity Multifocal lenses beat competitors across a range of parameters including quality of vision and comfort. In fact, users rated these lenses as better, in terms of general satisfaction, than the Acuvue Oasys for Presbyopia as well as PureVision Multi-Focal after a fortnight.
The Biofinity Multifocal lenses are currently available in the U.S. and France in a certain range of powers. The lens will be available in Canada later in this fiscal year. CooperVision plans to launch the lens in more nations in 2012. The commercialization of Biofinity Multifocal follows the steps of the company’s proven product line of Biofinity Asphere and Toric lenses. Biofinity is at present CooperVision's most rapidly growing brand.
Earlier this month, we reiterated our Outperform recommendation for The Cooper Companies Inc, based on its second-quarter fiscal 2011 (ended April 30) financial results. Earnings for the quarter of $1.02 sailed passed the Zacks Consensus Estimate of 93 cents while revenues of $325 million easily beat the Zacks Consensus Estimate of $315 million.
Our bullishness is buttressed by the company’s pipeline, with defined timelines. The turnaround of the company was spearheaded by favorable results for several consecutive quarters. Following its recent second quarter results, Cooper revised its guidance upward for the fiscal.
Growing cash flow has enabled the company to de-leverage its balance sheet, while creating room for tuck-in acquisitions. Cooper may choose to take over more distributors in emerging markets where lens utilization is expected to grow.
Cooper is a global medical products company specializing in a wide range of contact lenses for the vision correction market with a smaller strategic business unit for women’s health.
Cooper, the last remaining stand-alone lens entity, faces stiff competition from well established contact lens manufacturers such as Novartis (NVS) and Johnson & Johnson (JNJ). Depressed levels of consumer spending have heightened the competitive pressures on the company. Our Outperform recommendation on the stock is supported by a short-term Zacks #2 Rank (Buy).
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