The Cooper Companies Inc. ( COO ), a medical device company known for its wide range of contact lenses, recently made its MyDay lenses available in Hong Kong.
These are disposable lenses developed by CooperVision (CVI) with the aid of Smart Silicone chemistry. MyDay lenses, belonging to the silicone hydrogel family, are designed to offer maximum comfort to the wearer.
These lenses provide optimal amount of oxygen to keep the eyes healthy and white. High water content also helps in achieving comfort. These soft lenses are reported to contain an ultraviolet radiation blocker protecting the users' eyes from approximately 85% UVA rays and 96% UVB rays.
It is expected that the availability of MyDay lenses in Hong Kong will further boost the prospects of Cooper Companies going forward. In the recently concluded quarter, MyDay sales increased 79% in constant currency which in turn, drove the company's top-line growth.
Cooper Companies plan to position the lens as a premium offering over the long term. The company expects to launch MyDay in the U.S. in March and deploy it on a large scale in the second half of the year, once the required production capacity is achieved. The product is already available in some of the European countries.
We believe that the availability of the lens in Hong Kong, in addition to the future prospects in the U.S., is expected to strengthen the silicon hydrogel family, which is a key revenue driver for CVI. Moreover, the long-term prospects of MyDay will help the division to counter stiff competition from the likes of Johnson & Johnson ( JNJ ).
Currently, Cooper Companies carries a Zacks Rank #4 (Sell). Better-ranked stocks in the Medical/Dental-Supply space that warrant a look are Bio-Reference Laboratories ( BRLI ) and Align Technology ( ALGN ). While Bio-Reference Lab sports a Zacks Rank #1 (Strong Buy), Align Technology carries a Zacks Rank #2 (Buy).
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