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CooperCompanies (COO) Acquires obp Surgical to Boost Portfolio
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The CooperCompanies(COO - Free Report) announced that its division, CooperSurgical, has acquired obp Surgical, a U.S.-based medical device company known for its innovative single-use surgical products.
The acquisition, valued at approximately $100 million, includes obp Surgical's suite of cordless surgical retractors with integrated multi-LED light sources and dual smoke evacuation channels, as well as single-use surgical suction devices featuring cordless radial LED light sources. obp Surgical’s products, which generated around $14.5 million in trailing twelve-month revenues, include innovative single-use surgical retractors and suction devices.
CooperCompanies operates through two primary units, CooperVision and CooperSurgical. While CooperVision is a leader in the contact lens industry, CooperSurgical is a prominent fertility and women’s health company, providing over 600 clinically relevant medical devices to women, babies and families.
obp Surgical, a company known for its single-use, self-contained, cordless illuminating surgical devices, is a significant addition to CooperSurgical’s portfolio. Its innovative products are used in surgery centers and hospital operating rooms globally. Its products complement CooperSurgical’s commitment to delivering high-quality healthcare solutions.
Significance of the Acquisition
Per CooperCompanies, the acquisition of obp Surgical is a strategic enhancement for CooperSurgical, aligning with the company’s mission to provide cutting-edge surgical technologies to healthcare providers. obp Surgical’s distinctive ONETRAC portfolio complements CooperSurgical’s existing offerings, including INSORB, Lone Star and the Doppler Blood Flow Monitor.
obp Surgical’s products will be reported under CooperSurgical’s Office and Surgical category starting fiscal fourth-quarter 2024.
The acquisition is projected to be neutral to Cooper's non-GAAP earnings per share in fiscal 2024 and accretive after that. This strategic move aims to bolster CooperSurgical's already robust portfolio of medical devices.
Industry Prospects
Per a report in Grand View Research, the global surgical retractors market size was worth $1.8 billion in 2023. It is anticipated to reach $2.5 billion by 2030 at a CAGR of 4.8%.
The robust growth is likely to be driven by a rise in surgical procedures, an increasing global geriatric population, technological advancements, the rising prevalence of lifestyle disorders, and increased per capita healthcare expenditure.
Price Performance
Shares of CooperCompanies have decreased 3.4% so far this year against 4% rise of the industry. The S&P 500 has witnessed a 12.4% rise in the same time frame.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Currently, CooperCompanies carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Universal Health Service (UHS - Free Report) , Quest Diagnostics (DGX - Free Report) and ABM Industries (ABM - Free Report) . While Universal Health Service sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and ABM Industries carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Service has gained 41.1% compared with the industry's 34.8% rise so far this year.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have gained 3.7% so far this year compared with the industry’s 10.2% rise.
ABM Industries’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.34%.
ABM's shares have risen 24.1% so far this year compared with the industry’s 11.9% increase.
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CooperCompanies (COO) Acquires obp Surgical to Boost Portfolio
The CooperCompanies(COO - Free Report) announced that its division, CooperSurgical, has acquired obp Surgical, a U.S.-based medical device company known for its innovative single-use surgical products.
The acquisition, valued at approximately $100 million, includes obp Surgical's suite of cordless surgical retractors with integrated multi-LED light sources and dual smoke evacuation channels, as well as single-use surgical suction devices featuring cordless radial LED light sources. obp Surgical’s products, which generated around $14.5 million in trailing twelve-month revenues, include innovative single-use surgical retractors and suction devices.
CooperCompanies operates through two primary units, CooperVision and CooperSurgical. While CooperVision is a leader in the contact lens industry, CooperSurgical is a prominent fertility and women’s health company, providing over 600 clinically relevant medical devices to women, babies and families.
obp Surgical, a company known for its single-use, self-contained, cordless illuminating surgical devices, is a significant addition to CooperSurgical’s portfolio. Its innovative products are used in surgery centers and hospital operating rooms globally. Its products complement CooperSurgical’s commitment to delivering high-quality healthcare solutions.
Significance of the Acquisition
Per CooperCompanies, the acquisition of obp Surgical is a strategic enhancement for CooperSurgical, aligning with the company’s mission to provide cutting-edge surgical technologies to healthcare providers. obp Surgical’s distinctive ONETRAC portfolio complements CooperSurgical’s existing offerings, including INSORB, Lone Star and the Doppler Blood Flow Monitor.
obp Surgical’s products will be reported under CooperSurgical’s Office and Surgical category starting fiscal fourth-quarter 2024.
The acquisition is projected to be neutral to Cooper's non-GAAP earnings per share in fiscal 2024 and accretive after that. This strategic move aims to bolster CooperSurgical's already robust portfolio of medical devices.
Industry Prospects
Per a report in Grand View Research, the global surgical retractors market size was worth $1.8 billion in 2023. It is anticipated to reach $2.5 billion by 2030 at a CAGR of 4.8%.
The robust growth is likely to be driven by a rise in surgical procedures, an increasing global geriatric population, technological advancements, the rising prevalence of lifestyle disorders, and increased per capita healthcare expenditure.
Price Performance
Shares of CooperCompanies have decreased 3.4% so far this year against 4% rise of the industry. The S&P 500 has witnessed a 12.4% rise in the same time frame.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Currently, CooperCompanies carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Universal Health Service (UHS - Free Report) , Quest Diagnostics (DGX - Free Report) and ABM Industries (ABM - Free Report) . While Universal Health Service sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and ABM Industries carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Service has gained 41.1% compared with the industry's 34.8% rise so far this year.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have gained 3.7% so far this year compared with the industry’s 10.2% rise.
ABM Industries’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.34%.
ABM's shares have risen 24.1% so far this year compared with the industry’s 11.9% increase.