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COO Stock Up 0.4% Following the Launch of New Inserter for Paragard IUD

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The Cooper Companies, Inc.’s (COO - Free Report) business segment, CooperSurgical (CSI), announced the launch of a new inserter designed for single-hand placement of Paragard on Tuesday, which was recently approved by the FDA. The new single-hand inserter will likely simplify the placement process for healthcare providers, thus making Paragard a more accessible contraceptive choice for both providers and patients.

Paragard, a hormone-free intrauterine device (IUD), prevents pregnancy for up to 10 years using copper as the only active ingredient. Paragard with the new single-hand inserter is currently commercially available.

Following the launch announcement on Sept. 3, Cooper Companies’ shares have gained 0.4% till the last trading.

The latest launch is expected to strengthen COO’s CSI segment’s Office/Surgical product category and boost the business.

Significance of the Latest Launch by COO

Paragard is immediately reversible after placement and offers more than 99% efficacy for up to 10 years, thus providing women with reliable, long-term contraception. Per management, a Paragard market survey found that 91% of users aged 25-50 were satisfied with Paragard overall after at least one year.

Management believes that the newly-approved inserter, with its built-in loading tip and single-hand functionality, will simplify the placement procedure without compromising the reliability of Paragard itself.

Industry Prospects for Cooper Companies

Per a report by Grand View Research, the global IUD market was estimated at $6.25 billion in 2023 and is anticipated to expand at a CAGR of approximately 3.7% between 2024 and 2030. Factors like an increase in the number of unplanned and unintended pregnancies, the growing number of unsafe abortions and the increasing awareness among people about contraception are likely to drive the market.

Given the market potential, the latest launch is expected to provide a significant boost to Cooper Companies’ business.

Recent Developments in COO’s CSI

Last month, Cooper Companies announced its third-quarter fiscal 2024 results, wherein the CSI segment’s revenues were up 9% on a reported basis, up 10% at the constant exchange rate (CER) and up 5% organically year over year. The segment’s Office and surgical revenues increased 11% on a reported basis, up 11% at CER and up 2% organically year over year.

The same month, Cooper Companies announced that CSI had acquired obp Surgical, a U.S.-based medical device company with a suite of single-use cordless surgical retractors with an integrated multi-LED light source and dual smoke evacuation channels and single-use surgical suction devices with an integrated, cordless radial LED light source. The acquisition of obp Surgical’s ONETRAC portfolio of surgical retractors and suction devices is expected to complement CSI’s existing surgical portfolio, including INSORB, Lone Star and the Doppler Blood Flow Monitor.

Cooper Companies’ Share Price Performance

Shares of the company have gained 20.9% in the past year against the industry’s 1.6% decline. The S&P 500 has witnessed 23.3% growth in the said time frame.

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COO’s Zacks Rank & Other Key Picks

Currently, Cooper Companies carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Quest Diagnostics Incorporated (DGX - Free Report) and Boston Scientific Corporation (BSX - Free Report) .

DaVita, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 17.5%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 24.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DaVita’s shares have gained 56.9% compared with the industry’s 27.5% rise in the past year.

Quest Diagnostics, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 6.2%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average being 3.3%.

Quest Diagnostics has gained 21.6% compared with the industry’s 27.5% rise in the past year.

Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.6%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.2%.

Boston Scientific’s shares have rallied 50.8% compared with the industry’s 17.2% rise in the past year.


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