1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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As a cash-pay business with sticky customers and few competitors, the contact lens industry is an attractive market, in our opinion. Four main players (Johnson & Johnson, Alcon, Bausch & Lomb, and Cooper) dominate the global market, and industry regulations paired with specialized manufacturing and technological ability creates strong barriers to entry, keeping new entrants away.
Cooper Companies operates two units: CooperVision and CooperSurgical. Accounting for approximately 75% of total sales, CooperVision is the the second-largest player in the oligopolistic contact lens market. Over 50% of CooperVision's sales are in international territories. The second unit, CooperSurgical, develops and manufactures diagnostic and surgical products for gynecologists and obstetricians, including the Paragard IUD, which Cooper acquired from Teva in 2017.
