The Cooper Companies (COO) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Business performance and industry trends

• Both vision and surgical segments are experiencing strong growth, supported by long-term macro trends such as increasing myopia and delayed family planning.

• Demand for daily silicone hydrogel contact lenses is outpacing supply, with capacity constraints expected to ease by fiscal 2026.

• The contact lens market is shifting toward premium, specialty products like torics, multifocals, and myopia control, driving diversified growth.

• Fertility business continues double-digit growth, leveraging a broad portfolio and AI-driven genetic testing to improve outcomes.

• Political and insurance changes supporting fertility treatments are seen as positive industry drivers.

Investment strategy and operational focus

• Highest returns are achieved by investing in new manufacturing lines for vision products, especially to meet high demand.

• Fertility segment investments focus on R&D, geographic expansion, and new product launches.

• Free cash flow generation is a top priority, with efforts to improve from mid-single digit to historical levels near 20% of revenue.

• Operating leverage is improving as recent investments in IT, distribution, and production efficiency begin to yield returns.

• Continuous improvement and efficiency programs are reducing cost per unit and supporting margin expansion.

Product innovation and market positioning

• MiSight is the only FDA-approved contact lens for myopia control in children, with growing adoption and international expansion.

• SightGlass, a joint venture with Essilor, is performing well in China and is expected to become standard of care once FDA approved.

• Technology improvements in multifocal lenses are retaining older users who previously would have dropped out.

• Brand equity is built primarily through relationships with eye care professionals rather than direct consumer marketing.

• The company leads in wearer base globally, attributing share gains to a broad portfolio and specialty products.