The Cooper Companies Inc.
) revealed that it has entered definitive agreements to acquire
European manufacturer and distributor of soft contact lenses and
solutions, Sauflon Pharmaceuticals Ltd for a handsome amount of
$1.2 billion. COO will finance the deal with off-shore cash and
The handsome value for the deal looks justified as it will
strengthen COO's CooperVision portfolio with multi-tier daily
strategy offerings. The fast growing multi-tier daily strategy
offerings include silicone hydrogel and hydrogel lenses, including
options within all categories -- spheres, torics and multifocals.
Sauflon Pharmaceuticals expects to report a 22% rise in revenue to
$210 million for the fiscal year ending Oct 31, 2014. The
acquisition is anticipated to close before the end of fiscal year.
It is expected to be accretive to COO's earnings per share in
In the fiscal 2014-second-quarter, COO's adjusted earnings per
share scaled up 9.3% to $1.64 from the year-ago level of $1.50 and
beat the Zacks Consensus Estimate by 3 cents.
Revenues increased 7.4% to $412.3 million and were in line with the
Zacks Consensus Estimate of $412 million. Revenues went up 9% in
constant currency, excluding the divestiture of Aime
(CooperVision's rigid gas permeable contact lens and solutions
business in Japan).
Revenues in the CooperVision segment rose 7% (9% in constant
currency and excluding the divestiture of Aime) to $331.1 million.
The segment continued to gain share across all geographies driven
by COO's silicone hydrogel products, especially Biofinity and
For fiscal 2014, COO's earnings per share are expected in the band
of $6.78 to $7.00 compared with the earlier range of $6.75 to
$7.00, while adjusted earnings per share are projected in the band
of $6.80-$7.00 compared with the prior range of $6.75 to $7.00. The
current Zacks Consensus Estimate of $6.90 lies within the guided
COO continues to expect total revenue between $ 1,685 and $1,725
million for the year, including CooperVision revenues of
$1,365-$1,395 million. The current Zacks Consensus Estimate of
$1,711 million lies within the guided range.
Currently, COO retains a Zacks Rank #3 (Hold). Some better-ranked
stocks in the medical/dental supply industry that warrant a look
West Pharmaceutical Services, Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
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