The ongoing popularity of daily silicone hydrogel lenses and toric lenses lifted the results of CooperVision (CVI), which is part of The Cooper Companies, for group's fiscal third quarter ended on July 31. Revenues gained 4 percent from the year-ago quarter to $509.1 million. On a pro forma basis and in constant currencies, they increased by 6 percent.
Toric lenses, which have different optical power and focal length in two perpendicular orientations, recorded 6 percent higher sales of $163.1 million, representing almost one-third of CVI's total sales.
Meanwhile, sales of single-use sphere lenses jumped by 6 percent to $146.3 million, and sales of non-single-use sphere lenses rose by 1 percent to $147.3 million. Each of the two categories represented 29 percent of CVI's total revenues in the period. Sales of multifocal lenses, which represented 10 percent of CVI's revenue, were down by 1 percent to $52.4 million.
CVI posted revenue growth in all the three main regions of the world where it is present, with the Americas up by 5 percent, Europe, the Middle East and Africa (EMEA) up by 3 percent and Asia-Pacific up by 13 percent, all on a pro forma basis and in constant currencies. All three regions were led by the company's two lines of daily silicone hydrogel lenses, MyDay and Clariti, which grew by 23 percent. Biofinity also performed well, with Energous and Torics leading the way.
The management said that sales in the EMEA region were a little softer than expected, largely because of lower stocking levels due to fluctuations in production as the company works through challenges associated with Brexit. The U.K. is a major manufacturing and sales hub for CVI.
It also commented on its progress with MiSight, a myopia management lens that is selling in several European countries, Canada, and a few Asia-Pacific countries. MiSight exceeded $1 million in revenues in the quarter for the first time, doubling on a year-over-year basis. The lens is not yet sold in the U.S. and the company is continuing to work with the Food and Drug Administration (FDA) and hopes to provide an update prior to the calendar year-end. The management pointed out that there are currently no FDA-approved myopia management contact lenses, and an approval would be “a major milestone.” It has increased pre-launch investment efforts in the U.S. to get a better understanding of the market.
Overall, CVI's gross margin declined by one percentage point to 65 percent in the quarter, due to ongoing infrastructure investments to support long-term growth initiatives. The company keeps investing to support key accounts and independent practitioners by upgrading distribution and packaging operations, IT systems and its overall customer service capabilities.
Looking ahead to the full financial year, CVI's revenues are expected to grow to a range of $1,966 million to $1,976 million.