CooperVision, a part of The Cooper Companies Inc. (COO - Analyst Report), a company focused on contact lens and women’s health, recently revealed that it introduced the MyDay daily disposable contact lenses to the British Contact Lens Association (BCLA) Clinical Conference & Exhibition.
The MyDay lenses are highly oxygen permeable as they are made of a special chemical, named Smart Silicone (stenfilcon A). These lenses provide greater water in their composition, better wetness and an easier usage. They are expected to be launched in Europe in Sep 2013 and in other markets from early 2014.
Research suggests that 90% of contact lens wearers are pleased with the comfort level provided by the MyDay lenses. In a scientific comparison conducted with the leading brand, MyDay came out ahead on parameters such as ease of usage, dryness, comfort and level of satisfaction.
The outlook for the contact lens industry is favorable. Trade up to value added lenses, such as silicone hydrogel or one-day lenses, constitutes a major avenue for growth. A trade up to 1-day disposable lenses sharply increases per user sales and profit. The company continues to grow sales at higher than market growth rates.
Cooper is a leader in the high-margin toric lens market. It offers multiple designs of toric lenses across a wide range of parameters, unlike some of its competitors, who offer toric lenses in a limited number of designs.
However, Cooper faces formidable competition in each of its major product lines. Competition comes from well established global contact lens makers. Depressed levels of consumer spending have heightened the company’s competitive pressures.
The stock currently carries a Zacks Rank #3 (Hold). We are also positive about Becton, Dickinson and Company (BDX - Analyst Report), CONMED Corporation (CNMD - Analyst Report) and Steris Corp. (STE - Analyst Report) each of which carries a Zacks Rank #2 (Buy) and are expected to do well.