WEBVTT 00:00:00.000 --> 00:00:03.259 Welcome back to the Deep Dive. So our mission 00:00:03.259 --> 00:00:05.360 here, as you know, it's always the same. We take 00:00:05.360 --> 00:00:09.000 this huge stack of research, all the articles, 00:00:09.140 --> 00:00:10.580 the corporate documents. That have been stuff. 00:00:11.039 --> 00:00:13.000 Exactly. The stuff that takes days to get through. 00:00:13.140 --> 00:00:15.679 And we try to boil it all down for you. We want 00:00:15.679 --> 00:00:17.800 to give you the, well, the pure strategic insight, 00:00:17.940 --> 00:00:20.079 those critical shortcuts. Yeah. So you can walk 00:00:20.079 --> 00:00:22.960 away well informed with a few of those aha moments 00:00:22.960 --> 00:00:26.620 really locked in. Today, we're unpacking a giant 00:00:26.620 --> 00:00:29.750 of the medical device world. The Cooper Companies, 00:00:29.929 --> 00:00:34.149 Inc. or Cooper Companies. Now, most people hear 00:00:34.149 --> 00:00:36.109 that name and they probably think of just one 00:00:36.109 --> 00:00:38.090 thing. Contact lens. Contact lenses, exactly. 00:00:38.509 --> 00:00:41.350 But what our source material reveals is, frankly, 00:00:41.490 --> 00:00:44.090 a stunning strategic depth. This is a company 00:00:44.090 --> 00:00:46.450 that has engineered its entire structure to profit 00:00:46.450 --> 00:00:50.600 from two. Very distinct, high growth and utterly 00:00:50.600 --> 00:00:52.700 essential corners of global health care. And 00:00:52.700 --> 00:00:54.420 that structural duality. I mean, that is the 00:00:54.420 --> 00:00:56.439 single most important concept we need to understand 00:00:56.439 --> 00:00:59.079 today. Cooper Companies, it trades a COO on the 00:00:59.079 --> 00:01:01.380 Nasdaq. It's a component of the S &P 500. So 00:01:01.380 --> 00:01:04.420 it's a major player. But it isn't a monolithic 00:01:04.420 --> 00:01:08.299 entity. It's a global medical device holding 00:01:08.299 --> 00:01:10.819 company headquartered out in San Ramon, California. 00:01:11.239 --> 00:01:14.180 And it's organized into two. powerful business 00:01:14.180 --> 00:01:16.840 units that function almost, well, almost entirely 00:01:16.840 --> 00:01:19.400 separately. A deliberate lack of synergy. That's 00:01:19.400 --> 00:01:22.319 interesting. In modern corporate strategy, synergy, 00:01:22.519 --> 00:01:24.040 you know, finding that overlap and efficiency 00:01:24.040 --> 00:01:27.159 is usually the goal. So what's the benefit of 00:01:27.159 --> 00:01:29.780 keeping these two colossal businesses, vision 00:01:29.780 --> 00:01:32.579 and surgery, so structurally separate? Well, 00:01:32.640 --> 00:01:36.079 the benefit is focused market dominance and a 00:01:36.079 --> 00:01:38.840 lot of operational stability through diversification. 00:01:39.180 --> 00:01:41.980 You should think of them as two highly optimized 00:01:41.980 --> 00:01:43.819 engines, each running on a different kind of 00:01:43.819 --> 00:01:47.060 fuel. The first engine is Tuper Vision or CVI 00:01:47.060 --> 00:01:49.480 that handles the massive recurring revenue stream 00:01:49.480 --> 00:01:51.939 of the contact lens market. And the second is 00:01:51.939 --> 00:01:54.340 Cooper Surgical, CSI, which is the high stakes, 00:01:54.459 --> 00:01:57.319 high margin, technologically complex unit. And 00:01:57.319 --> 00:01:59.280 it's focused squarely on women's health care, 00:01:59.420 --> 00:02:02.219 fertility solutions and genomics. The contact 00:02:02.219 --> 00:02:05.879 lenses and the fertility tech. It is a bizarre 00:02:05.879 --> 00:02:07.819 pairing, isn't it? When I first looked at the 00:02:07.819 --> 00:02:10.300 sources, I really thought, what common ground 00:02:10.300 --> 00:02:13.639 do these two things have? I mean, a box of daily 00:02:13.639 --> 00:02:16.039 disposables and a massive fertility genomics 00:02:16.039 --> 00:02:20.699 lab. What do they possibly share? And that's 00:02:20.699 --> 00:02:23.060 the right question. The common thread isn't the 00:02:23.060 --> 00:02:25.819 product. It's the necessity. It's the market. 00:02:26.199 --> 00:02:29.580 both cvi and csi they address non -negotiable 00:02:29.580 --> 00:02:32.060 health needs or you know fundamental human desires 00:02:32.060 --> 00:02:34.759 right and both of these markets routine vision 00:02:34.759 --> 00:02:36.780 correction and reproductive health are showing 00:02:36.780 --> 00:02:40.060 strong global growth trajectories so this duality 00:02:40.060 --> 00:02:43.439 becomes a brilliant if uh unconventional hedge 00:02:43.439 --> 00:02:46.259 against economic or regulatory headwinds and 00:02:46.259 --> 00:02:48.680 that balance is the key to understanding The 00:02:48.680 --> 00:02:50.819 company's, what, four billion plus revenue scale? 00:02:50.939 --> 00:02:52.560 Exactly. That's the foundation of it all. OK, 00:02:52.620 --> 00:02:54.740 so this kind of strategic clarity is not built 00:02:54.740 --> 00:02:57.020 overnight. It takes decades of trying things, 00:02:57.159 --> 00:02:59.780 failing at things and constantly reorganizing. 00:02:59.800 --> 00:03:01.439 Let's walk through the company's history, because 00:03:01.439 --> 00:03:03.699 the story here isn't one of stability. It's about 00:03:03.699 --> 00:03:08.020 a constant, sometimes almost frantic search for 00:03:08.020 --> 00:03:11.120 the most profitable strategic focus. Precisely. 00:03:11.360 --> 00:03:14.310 If we trace the lineage. Way back. I mean, we're 00:03:14.310 --> 00:03:17.569 talking late 1950s here. Right. The company was 00:03:17.569 --> 00:03:20.289 first established in 1958, and its first name 00:03:20.289 --> 00:03:23.789 was the Martin H. Smith Co. The Martin H. Smith 00:03:23.789 --> 00:03:26.129 Co., so a very personal sort of founder -driven 00:03:26.129 --> 00:03:28.169 name to start. A simple start, and it was likely 00:03:28.169 --> 00:03:30.469 focused on a pretty narrow range of products, 00:03:30.530 --> 00:03:32.370 we can assume. And they pivoted very quickly. 00:03:32.469 --> 00:03:35.789 Just three years later, in 1961, it incorporates 00:03:35.789 --> 00:03:39.050 under a slightly more official and medically 00:03:39.050 --> 00:03:42.430 focused name, Cooper Tinsley Laboratories, Inc. 00:03:43.069 --> 00:03:45.870 That shift from a personal name to including 00:03:45.870 --> 00:03:48.560 laboratories in the title. That signals an early 00:03:48.560 --> 00:03:50.479 ambition. It does, an ambition to be involved 00:03:50.479 --> 00:03:53.180 in research and development, maybe even pharmaceuticals. 00:03:53.199 --> 00:03:55.280 It sets a tone for scientific endeavor right 00:03:55.280 --> 00:03:58.180 from the get -go. And by 1967, they streamlined 00:03:58.180 --> 00:04:00.639 that identity even further. They land on Cooper 00:04:00.639 --> 00:04:02.759 Laboratories, Inc. They carried that name through 00:04:02.759 --> 00:04:04.240 the rest of the decades, cementing themselves 00:04:04.240 --> 00:04:07.099 as a player focused on clinical development and, 00:04:07.180 --> 00:04:09.159 you know, potentially broad medical applications. 00:04:09.639 --> 00:04:11.860 But the pivotal moment, the moment they really 00:04:11.860 --> 00:04:14.319 set the stage for their modern structure, that 00:04:14.319 --> 00:04:17.810 came in the early 1970s. And... That's the entry 00:04:17.810 --> 00:04:20.949 point into vision. That's the big one. In 1972, 00:04:21.250 --> 00:04:24.110 the company acquired a British lens maker, Global 00:04:24.110 --> 00:04:27.209 Vision. This acquisition didn't just add a product 00:04:27.209 --> 00:04:30.949 line, it fundamentally where. It baked ophthalmic 00:04:30.949 --> 00:04:34.050 technology right into the company's DNA. It absolutely 00:04:34.050 --> 00:04:36.329 did. It redefined their long term direction. 00:04:36.430 --> 00:04:39.810 They were now on the path to being a major player 00:04:39.810 --> 00:04:41.769 in corrective vision, which, of course, became 00:04:41.769 --> 00:04:44.250 the foundation for Cooper Vision. And that successful 00:04:44.250 --> 00:04:47.850 pivot that led to the, well, the chaotic, expansive 00:04:47.850 --> 00:04:51.360 era of the 1980s. Yes. That decade was so critical 00:04:51.360 --> 00:04:54.240 because it showed the company testing the limits 00:04:54.240 --> 00:04:56.339 of its identity, trying to figure out what it 00:04:56.339 --> 00:04:58.339 wanted to be. And it looks less like discipline 00:04:58.339 --> 00:05:01.160 and more like diversification by committee, especially 00:05:01.160 --> 00:05:03.660 when you look at the structure they had in 1980. 00:05:03.759 --> 00:05:07.160 Cooper Laboratories undergoes this major reorganization, 00:05:07.259 --> 00:05:09.680 and it segments itself into three initial business 00:05:09.680 --> 00:05:12.180 groups. You've got Cooper Vision, Cooper Care, 00:05:12.339 --> 00:05:14.379 and Cooper Biomedical. It was a classic, throw 00:05:14.379 --> 00:05:16.480 everything at the wall and see what sticks strategy. 00:05:16.819 --> 00:05:19.100 You have the nascent, successful Cooper Vision. 00:05:19.439 --> 00:05:22.240 Then you have Cooper Care, which was likely focusing 00:05:22.240 --> 00:05:25.139 on general consumer medical products or some 00:05:25.139 --> 00:05:28.000 kind of specialty care. And then Cooper Biomedical, 00:05:28.259 --> 00:05:30.399 which was aimed at advanced life sciences or 00:05:30.399 --> 00:05:32.819 diagnostics. The company was trying to capture 00:05:32.819 --> 00:05:35.459 value across multiple, very different therapeutic 00:05:35.459 --> 00:05:38.500 areas. And they just kept piling on more structure 00:05:38.500 --> 00:05:41.660 a year later. In 1981, they added a fourth group. 00:05:41.879 --> 00:05:44.560 Cooper Medical Devices Corps. Right. And this 00:05:44.560 --> 00:05:46.500 aggressive expansion. I mean, now you've got 00:05:46.500 --> 00:05:50.839 four distinct business lines, vision, care, biomedical 00:05:50.839 --> 00:05:53.660 and devices. It just points to this period of 00:05:53.660 --> 00:05:56.399 trying to cover, well, everything in the health 00:05:56.399 --> 00:05:58.540 care landscape. And that's often just unsustainable. 00:05:58.839 --> 00:06:00.339 Right. Yeah. Trying to manage four different 00:06:00.339 --> 00:06:02.240 R &D pipelines, all the different regulatory 00:06:02.240 --> 00:06:04.279 burdens. It's a lot. And that's why the late 00:06:04.279 --> 00:06:06.819 1980s were marked by consolidation. They had 00:06:06.819 --> 00:06:09.879 to rein it in. So in 1987, the company finally 00:06:09.879 --> 00:06:12.500 adopts its current, more institutional sounding 00:06:12.500 --> 00:06:15.790 name. The Cooper Companies. And that name change, 00:06:15.850 --> 00:06:18.550 it reflected a transition. They were moving from 00:06:18.550 --> 00:06:23.189 a pure laboratory identity to a diversified holding 00:06:23.189 --> 00:06:26.509 company structure. It was preparing them to manage 00:06:26.509 --> 00:06:28.949 multiple distinct entities, even if they were 00:06:28.949 --> 00:06:31.029 still figuring out exactly what those entities 00:06:31.029 --> 00:06:33.790 were going to be. The structural evolution that 00:06:33.790 --> 00:06:36.790 really locked in the duality we see today. That 00:06:36.790 --> 00:06:40.029 happened in 1990. They restructured again, this 00:06:40.029 --> 00:06:43.050 time into three very specific business units. 00:06:43.509 --> 00:06:46.250 Cooper Vision, Cooper Surgical, and Cooper Vision 00:06:46.250 --> 00:06:48.069 Pharmaceuticals. And this is the formal birth 00:06:48.069 --> 00:06:50.430 of Cooper Surgical. They've identified a second 00:06:50.430 --> 00:06:53.329 core competency outside of just vision, specifically 00:06:53.329 --> 00:06:55.670 in the surgical and medical device space. But 00:06:55.670 --> 00:06:58.470 look at that third pillar, Cooper Vision Pharmaceuticals. 00:06:58.470 --> 00:07:00.810 Right. This tells us they were still trying to 00:07:00.810 --> 00:07:02.870 leverage their vision expertise into high margin 00:07:02.870 --> 00:07:05.170 drug development. Yeah. You know, eye drops or 00:07:05.170 --> 00:07:07.310 other complementary ophthalmic drugs. But that 00:07:07.310 --> 00:07:10.360 unit. It didn't last. The source material is 00:07:10.360 --> 00:07:13.079 very clear that it was dissolved in 2003. And 00:07:13.079 --> 00:07:14.899 it's so interesting how they built up all these 00:07:14.899 --> 00:07:18.980 units only to ultimately decide to shed the pharmaceuticals. 00:07:18.980 --> 00:07:20.660 Yeah. What does that tell us about where they 00:07:20.660 --> 00:07:24.319 saw the real profit margins and maybe where they 00:07:24.319 --> 00:07:26.920 were most competitive? It told them their strength 00:07:26.920 --> 00:07:29.120 lies in devices and technologies, not in drug 00:07:29.120 --> 00:07:31.810 development. Pharmaceuticals are. They're incredibly 00:07:31.810 --> 00:07:34.410 capital intensive. They're risky. And they have 00:07:34.410 --> 00:07:37.870 extremely long R &D cycles. By shedding the pharma 00:07:37.870 --> 00:07:41.009 unit in 2003, they solidified the streamlined 00:07:41.009 --> 00:07:44.310 dual structure that we see today. Two focused 00:07:44.310 --> 00:07:47.050 non -pharmaceutical medical device leaders, Cooper 00:07:47.050 --> 00:07:49.529 Vision and Cooper Surgical. They basically recognize 00:07:49.529 --> 00:07:52.170 they could dominate the device markets far more 00:07:52.170 --> 00:07:54.649 effectively than the chemistry markets. So the 00:07:54.649 --> 00:07:56.829 history is really a story of narrowing focus. 00:07:57.110 --> 00:07:59.329 You go from this broad laboratories trying to 00:07:59.329 --> 00:08:01.620 do everything in the 80s. to a highly disciplined 00:08:01.620 --> 00:08:04.500 dual focus on contact lenses and specialty surgical 00:08:04.500 --> 00:08:07.420 devices by the early 2000s. That history, it 00:08:07.420 --> 00:08:10.259 really sets the stage for a very specific strategic 00:08:10.259 --> 00:08:12.639 approach in both of those markets. It speaks 00:08:12.639 --> 00:08:15.759 volumes about their strategic discipline. I mean, 00:08:15.779 --> 00:08:18.100 to walk away from a large investment, like a 00:08:18.100 --> 00:08:21.040 pharmaceutical division. That's a hard choice, 00:08:21.220 --> 00:08:23.519 but it shows they acknowledge that the future 00:08:23.519 --> 00:08:26.920 really lay in the recurring revenue of CVI and 00:08:26.920 --> 00:08:29.519 the specialized high margin opportunities that 00:08:29.519 --> 00:08:31.800 were being developed in CSI. OK, let's turn our 00:08:31.800 --> 00:08:33.559 attention to the first of those two pillars then. 00:08:33.700 --> 00:08:35.700 We're going to dive deep into Cooper Vision, 00:08:35.919 --> 00:08:39.360 the contact lens giant. Yeah. So Cooper Vision, 00:08:39.519 --> 00:08:42.740 it's built on two things, really. Scale. and 00:08:42.740 --> 00:08:45.639 routine interaction. They serve millions of contact 00:08:45.639 --> 00:08:48.419 lens wearers, of course. But the truly strategic 00:08:48.419 --> 00:08:50.980 relationship they maintain is with the eye care 00:08:50.980 --> 00:08:53.779 practitioners all over the globe. Those practitioners, 00:08:53.960 --> 00:08:55.360 they're the ones writing the prescription and 00:08:55.360 --> 00:08:57.460 recommending the brand. So it's a very sophisticated 00:08:57.460 --> 00:09:01.399 B2B2C model. That's exactly right. CVI operates 00:09:01.399 --> 00:09:03.840 a highly effective razor and blades business 00:09:03.840 --> 00:09:06.919 model. Ah, the classic. The classic. The eye 00:09:06.919 --> 00:09:08.840 doctor is the razor. They get you locked into 00:09:08.840 --> 00:09:11.139 the system, often recommending CVI products. 00:09:11.360 --> 00:09:15.080 And the lenses. The lenses are the blades. They're 00:09:15.080 --> 00:09:18.360 continuous, high -volume, necessary consumables. 00:09:18.740 --> 00:09:21.899 Their market position is just so robust because, 00:09:22.159 --> 00:09:24.799 I mean, human vision correction is non -negotiable 00:09:24.799 --> 00:09:27.700 for millions, and it requires constant replenishment. 00:09:27.940 --> 00:09:30.019 Let's break down that core product portfolio, 00:09:30.259 --> 00:09:32.840 which really provides the bedrock of their revenue. 00:09:33.240 --> 00:09:36.120 The entire range of disposable lenses is covered, 00:09:36.240 --> 00:09:38.440 which ensures they have an offering for basically 00:09:38.440 --> 00:09:41.720 every budget and lifestyle choice. We can categorize 00:09:41.720 --> 00:09:43.879 their offerings by wear frequency, which reflects 00:09:43.879 --> 00:09:46.399 consumer choice and, of course, cost. So at the 00:09:46.399 --> 00:09:48.559 high end, the premium segment, you have the... 00:09:49.049 --> 00:09:51.649 daily disposable contact lenses. Right. The most 00:09:51.649 --> 00:09:53.870 convenient. The peak of convenience and hygiene. 00:09:54.169 --> 00:09:56.070 They're designed to be thrown away after just 00:09:56.070 --> 00:09:58.509 one use, which eliminates the need for all those 00:09:58.509 --> 00:10:00.889 cleaning solutions. And, you know, this is the 00:10:00.889 --> 00:10:03.049 fastest growing segment globally. So Cooper Vision's 00:10:03.049 --> 00:10:05.269 presence here ensures it captures that high value 00:10:05.269 --> 00:10:07.610 consumer. And then, of course, they offer the 00:10:07.610 --> 00:10:09.350 more traditional segments that capture market 00:10:09.350 --> 00:10:11.450 share from the cost conscious or, you know, the 00:10:11.450 --> 00:10:14.350 habitual wearers. Precisely. They also manufacture 00:10:14.350 --> 00:10:17.370 the two week disposable contact lenses and the 00:10:17.370 --> 00:10:19.730 traditional month. disposable contact lenses. 00:10:20.009 --> 00:10:22.789 And strategically, offering all three of those 00:10:22.789 --> 00:10:26.029 frequencies allows CVI to capture market share 00:10:26.029 --> 00:10:28.789 at multiple price points. It prevents leakage 00:10:28.789 --> 00:10:31.610 to competitors and maintains loyalty within the 00:10:31.610 --> 00:10:33.830 Cooper Vision brand family. So that breadth of 00:10:33.830 --> 00:10:35.950 portfolio provides immense revenue stability. 00:10:36.250 --> 00:10:39.110 Immense. It's the mass market coverage that provides 00:10:39.110 --> 00:10:41.850 the volume, but the real strategic advantage, 00:10:42.090 --> 00:10:44.409 and I think where the higher margins often reside, 00:10:44.940 --> 00:10:46.820 is in their specialty lenses. This is where they 00:10:46.820 --> 00:10:49.059 move from simple material science to a highly 00:10:49.059 --> 00:10:51.840 complex, customized design. And that ability 00:10:51.840 --> 00:10:54.679 to address complex vision issues is what differentiates 00:10:54.679 --> 00:10:56.600 them from just being a commodity producer. It's 00:10:56.600 --> 00:11:00.360 a huge moat. CVI focuses on four key areas of 00:11:00.360 --> 00:11:02.399 vision correction that require real technical 00:11:02.399 --> 00:11:04.879 mastery. Starting with the basics, they offer 00:11:04.879 --> 00:11:07.480 spherical lenses. That's for correcting simple 00:11:07.480 --> 00:11:10.580 nearsightedness or myopia or farsightedness, 00:11:10.679 --> 00:11:13.799 hyperopia. But beyond that, things get much more 00:11:13.799 --> 00:11:16.860 complicated. Yes. Next up are the toric lenses, 00:11:17.019 --> 00:11:20.519 which are specifically designed to correct astigmatism. 00:11:20.539 --> 00:11:23.299 Which is incredibly common. A massive segment. 00:11:23.500 --> 00:11:26.700 Astigmatism is so common. But the design is highly 00:11:26.700 --> 00:11:29.340 challenging. The lens needs to remain perfectly 00:11:29.340 --> 00:11:32.519 stable and oriented correctly on the eye. They 00:11:32.519 --> 00:11:35.080 often use features like prism ballasting or thin 00:11:35.080 --> 00:11:37.600 zones to prevent it from rotating when the patient 00:11:37.600 --> 00:11:41.220 blinks. A poorly designed torque lens is basically 00:11:41.220 --> 00:11:44.539 unusable, so mastery in this area is a significant 00:11:44.539 --> 00:11:47.419 competitive barrier. And that technical precision, 00:11:47.639 --> 00:11:49.360 you know, the rotational stability of a torque 00:11:49.360 --> 00:11:51.559 lens, that's a hallmark of advanced manufacturing. 00:11:51.860 --> 00:11:53.820 Absolutely. And then the third specialty area 00:11:53.820 --> 00:11:56.799 targets presbyopia. That's the age -related hardening 00:11:56.799 --> 00:11:59.059 of the... eyes lens. They use multifocal lenses 00:11:59.059 --> 00:12:01.440 for this. These are arguably the most complex 00:12:01.440 --> 00:12:03.720 to design. Why is that? Because they have to 00:12:03.720 --> 00:12:06.320 incorporate different prescriptive powers for 00:12:06.320 --> 00:12:10.080 near, intermediate, and far vision all on one 00:12:10.080 --> 00:12:13.559 tiny lens. So that requires complex concentric 00:12:13.559 --> 00:12:16.500 or segmented zones on the lens surface. Successfully 00:12:16.500 --> 00:12:19.299 fitting a multifocal lens, it requires excellent 00:12:19.299 --> 00:12:21.480 design from the manufacturer and really careful 00:12:21.480 --> 00:12:24.100 practice from the eye doctor. So you have spherical, 00:12:24.179 --> 00:12:26.840 toric, and multifocal. That covers the major 00:12:26.840 --> 00:12:29.679 refractive errors. But the strategic trajectory 00:12:29.679 --> 00:12:33.620 of CVI. That's best seen through their targeted 00:12:33.620 --> 00:12:35.940 acquisitions, which are pushing them into these 00:12:35.940 --> 00:12:39.100 cutting edge, niche, corrective and even preventative 00:12:39.100 --> 00:12:42.000 markets. The 2005 acquisition of Ocular Sciences 00:12:42.000 --> 00:12:45.200 Inc. was a foundational early move. It was about 00:12:45.200 --> 00:12:47.740 consolidating their base and scaling their general 00:12:47.740 --> 00:12:50.120 lens manufacturing capacity. More of a market 00:12:50.120 --> 00:12:51.860 share grab. It was about growing market share 00:12:51.860 --> 00:12:54.720 through inorganic means, exactly. But the 2022 00:12:54.720 --> 00:12:57.340 acquisition of Ensires, that tells a much more 00:12:57.340 --> 00:12:59.820 specific story. It's about strategic niche focus. 00:13:00.000 --> 00:13:02.230 This wasn't about... acquiring another general 00:13:02.230 --> 00:13:04.649 lens company. It was about acquiring very specific 00:13:04.649 --> 00:13:07.049 technological expertise. That is the crucial 00:13:07.049 --> 00:13:10.649 distinction. Ensires is a supplier of two highly 00:13:10.649 --> 00:13:14.610 specialized and non -standard types of lenses, 00:13:15.129 --> 00:13:18.990 orthokeratology or Ortho -K, and scleral contact 00:13:18.990 --> 00:13:22.090 lenses. These are the high cost, high service 00:13:22.090 --> 00:13:23.929 requirement issues that a lot of competitors 00:13:23.929 --> 00:13:26.350 often ignore. Let's focus on Ortho -K first, 00:13:26.549 --> 00:13:28.330 because for many of our listeners, this might 00:13:28.330 --> 00:13:31.580 be a new concept. Orthokeratology is not just 00:13:31.580 --> 00:13:33.960 about vision correction. It's also about preventative 00:13:33.960 --> 00:13:36.759 vision management, and predominantly for children. 00:13:36.860 --> 00:13:39.799 That's exactly right. Ortho -K lenses are rigid, 00:13:39.940 --> 00:13:42.820 gas -permeable lenses. The magic really happens 00:13:42.820 --> 00:13:45.279 while the wearer sleeps. They temporarily and 00:13:45.279 --> 00:13:48.080 reversibly reshape the cornea overnight, which 00:13:48.080 --> 00:13:49.779 allows the patient to see clearly during the 00:13:49.779 --> 00:13:52.480 day without any glasses or contacts. Wow. But 00:13:52.480 --> 00:13:54.519 the real market driver here, the big thing, is 00:13:54.519 --> 00:13:57.299 myopia control for children and teenagers. Myopia, 00:13:57.500 --> 00:14:01.000 or nearsightedness, is just. It's reaching epidemic 00:14:01.000 --> 00:14:03.360 proportions globally and slowing its progression, 00:14:03.519 --> 00:14:05.779 which can reduce the risks of severe eye disease 00:14:05.779 --> 00:14:08.240 later in life. That is a massive public health 00:14:08.240 --> 00:14:10.600 goal. And OrthoK is one of the key non -pharmacological 00:14:10.600 --> 00:14:14.350 methods for this. So by acquiring Ensires. Cooper 00:14:14.350 --> 00:14:16.730 Vision basically cemented its position in this 00:14:16.730 --> 00:14:19.950 highly specialized, high growth, pediatric focused 00:14:19.950 --> 00:14:22.990 segment. A very sticky market. It requires ongoing 00:14:22.990 --> 00:14:25.769 monitoring, specialized fitting. Which translates 00:14:25.769 --> 00:14:29.149 directly into highly durable, high margin revenue 00:14:29.149 --> 00:14:32.169 streams. Exactly. Often lasting for many years 00:14:32.169 --> 00:14:34.129 as the child grows. Okay. And then there are 00:14:34.129 --> 00:14:36.210 the scleral lenses. These are the truly specialized 00:14:36.210 --> 00:14:39.450 products typically used when standard soft lenses 00:14:39.450 --> 00:14:42.210 or even glasses fail. Sclera lenses are much 00:14:42.210 --> 00:14:45.190 larger than standard contacts. They vault entirely 00:14:45.190 --> 00:14:47.730 over the cornea and they rest only on the sclera, 00:14:47.789 --> 00:14:50.230 which is the white part of the eye. They're critical 00:14:50.230 --> 00:14:53.309 for managing complex corneal conditions, things 00:14:53.309 --> 00:14:55.950 like severe dry eye, post -surgical corneas, 00:14:55.950 --> 00:14:58.409 or irregular corneas caused by diseases like 00:14:58.409 --> 00:15:00.549 keratoconus. And because they create a fluid 00:15:00.549 --> 00:15:03.049 reservoir between the lens and the cornea, they're 00:15:03.049 --> 00:15:05.529 actually therapeutic. So why are they a strategic 00:15:05.529 --> 00:15:08.299 win for CVI? Because they're customized, they're 00:15:08.299 --> 00:15:11.500 complex to manufacture, they require highly specialized 00:15:11.500 --> 00:15:13.679 practitioner training, and they serve a captive 00:15:13.679 --> 00:15:16.240 patient population with chronic needs. So higher 00:15:16.240 --> 00:15:18.500 price point. They command significantly higher 00:15:18.500 --> 00:15:21.539 prices, sometimes thousands of dollars per pair. 00:15:21.659 --> 00:15:24.299 And they face very limited competition compared 00:15:24.299 --> 00:15:27.039 to the general disposable lens market, where 00:15:27.039 --> 00:15:29.419 Cooper Vision is battling giants like Johnson 00:15:29.419 --> 00:15:32.659 & Johnson and Elkhorn every single day. So the 00:15:32.659 --> 00:15:35.080 strategy is brilliantly dual, even within the 00:15:35.080 --> 00:15:38.100 CVI unit itself. You dominate the high -volume 00:15:38.100 --> 00:15:40.659 recurring revenue disposable market, and you 00:15:40.659 --> 00:15:43.500 dominate the high -margin, specialized, complex, 00:15:43.740 --> 00:15:47.100 niche markets using targeted M &A like Ensires. 00:15:47.299 --> 00:15:50.200 It creates enormous stability. The daily disposable 00:15:50.200 --> 00:15:52.519 business covers the vast manufacturing overhead, 00:15:52.779 --> 00:15:55.320 while the specialty lenses provide the high margins 00:15:55.320 --> 00:15:58.240 and the competitive differentiation. It's a really 00:15:58.240 --> 00:16:00.340 comprehensive approach that ensures market resilience. 00:16:00.779 --> 00:16:03.460 And that sets the stage for a fascinating contrast 00:16:03.460 --> 00:16:05.299 when we pivot to the other side of the company, 00:16:05.399 --> 00:16:07.600 to Cooper Surgical. If Cooper Vision is this 00:16:07.600 --> 00:16:10.179 high -volume consumer goods model, Cooper Surgical 00:16:10.179 --> 00:16:13.610 is a highly specialized B2B medtech model. The 00:16:13.610 --> 00:16:15.710 Cooper Surgical story is where we find the most 00:16:15.710 --> 00:16:17.870 aggressive recent growth and I think the most 00:16:17.870 --> 00:16:20.690 significant financial commitment. This unit, 00:16:20.809 --> 00:16:23.970 born out of that 1990 reorganization, has a mission 00:16:23.970 --> 00:16:26.549 that is highly focused on women's health, surgical 00:16:26.549 --> 00:16:29.549 devices, and critically, fertility and genomics. 00:16:29.769 --> 00:16:31.809 And this market is just vastly different from 00:16:31.809 --> 00:16:34.169 selling lenses. It involves complex surgical 00:16:34.169 --> 00:16:37.690 procedures, high -cost equipment, rigorous clinical 00:16:37.690 --> 00:16:40.610 validation. And highly sensitive patient interactions. 00:16:41.320 --> 00:16:44.200 Right. So why is CSI positioned as a high growth 00:16:44.200 --> 00:16:47.139 engine right now? Because of underlying societal 00:16:47.139 --> 00:16:49.639 shifts. I mean, while the global birth rate is 00:16:49.639 --> 00:16:52.419 declining, the demand for assisted reproductive 00:16:52.419 --> 00:16:55.820 technology or RT is skyrocketing. OK. You have 00:16:55.820 --> 00:16:58.120 factors like delayed parenthood, elective egg 00:16:58.120 --> 00:17:00.740 freezing and just general improvements in IVF 00:17:00.740 --> 00:17:03.659 success rates. All of this means that this sector, 00:17:03.799 --> 00:17:06.059 though it's expensive, is relatively recession 00:17:06.059 --> 00:17:09.099 resistant and shows immense global growth potential. 00:17:09.099 --> 00:17:11.480 So we connect this to the bigger picture. This 00:17:11.480 --> 00:17:14.359 unit is positioned to capitalize on those massive 00:17:14.359 --> 00:17:18.349 demographics. And that inherent accelerating 00:17:18.349 --> 00:17:22.589 demand, that explains the extraordinary financial 00:17:22.589 --> 00:17:26.269 commitment we saw between 2021 and 2022. This 00:17:26.269 --> 00:17:29.630 was a 15 -month period of high -intensity, high 00:17:29.630 --> 00:17:32.910 -value acquisitions aimed at rapidly establishing 00:17:32.910 --> 00:17:35.269 Cooper Surgical as a global leader in reproductive 00:17:35.269 --> 00:17:37.839 health. So they weren't just adding product lines, 00:17:37.940 --> 00:17:39.779 they were acquiring entire platforms. Entire 00:17:39.779 --> 00:17:42.000 platforms, exactly. Let's start with the groundwork 00:17:42.000 --> 00:17:44.799 they laid in early 2021 before the mega deals 00:17:44.799 --> 00:17:47.640 started hitting. In February 2021, they acquired 00:17:47.640 --> 00:17:50.400 AG Medical, a medical manufacturing company. 00:17:50.599 --> 00:17:53.380 That likely expanded their portfolio in minimally 00:17:53.380 --> 00:17:56.400 invasive surgical devices. Then a month later, 00:17:56.500 --> 00:17:59.299 March 2021, they picked up Safe Obstetric Systems, 00:17:59.539 --> 00:18:01.720 which added specific technologies aimed at improving 00:18:01.720 --> 00:18:04.119 safety and outcomes in obstetric care. So smart, 00:18:04.180 --> 00:18:06.720 targeted device additions to start. Yes. But 00:18:06.720 --> 00:18:09.200 the strategic decision that I think shocked the 00:18:09.200 --> 00:18:11.799 market and really changed the narrative for Cooper 00:18:11.799 --> 00:18:14.589 Surgical. That was the move at the end of 2021. 00:18:14.910 --> 00:18:17.950 Absolutely. December 2021 saw the colossal acquisition 00:18:17.950 --> 00:18:20.509 of Generate Life Sciences for $1 .6 billion. 00:18:20.950 --> 00:18:23.329 $1 .6 billion. This isn't just a large deal. 00:18:23.490 --> 00:18:25.930 It signaled their intent to move beyond just 00:18:25.930 --> 00:18:28.789 surgical devices and into the core life sciences 00:18:28.789 --> 00:18:30.970 and genomics that are required for modern fertility 00:18:30.970 --> 00:18:33.769 treatment. A deal that big demands some deep 00:18:33.769 --> 00:18:36.630 justification. What specifically did Generate 00:18:36.630 --> 00:18:39.730 Life Sciences give Cooper Surgical for that price 00:18:39.730 --> 00:18:42.369 tag? It gave them critical infrastructure in 00:18:42.369 --> 00:18:45.589 biobanking, so storage services for sperm, eggs, 00:18:45.690 --> 00:18:48.789 and embryos, and most importantly, a deep push 00:18:48.789 --> 00:18:51.529 into advanced genetic services. This includes 00:18:51.529 --> 00:18:54.630 preimplantation genetic testing, or PGT, which 00:18:54.630 --> 00:18:57.490 is absolutely essential for maximizing IVF success. 00:18:57.849 --> 00:18:59.549 Okay, so we're talking about things like PGTA 00:18:59.549 --> 00:19:01.849 testing, preimplantation genetic testing for 00:19:01.849 --> 00:19:04.210 aneuploidy, where you're screening embryos for 00:19:04.210 --> 00:19:06.509 chromosomal abnormalities before implantation. 00:19:06.529 --> 00:19:08.509 That's cutting -edge science. It requires specialized 00:19:08.509 --> 00:19:11.109 labs, bioinformatics. expertise and just rigorous 00:19:11.109 --> 00:19:15.230 regulatory compliance. Exactly. That $1 .6 billion 00:19:15.230 --> 00:19:18.230 bought them the pipeline for the scientific future 00:19:18.230 --> 00:19:21.529 of fertility. The testing, the screening, the 00:19:21.529 --> 00:19:23.849 sophisticated data management required to integrate 00:19:23.849 --> 00:19:27.089 genomics right into IVF success rates. It immediately 00:19:27.089 --> 00:19:29.829 put them in the same league as other major life 00:19:29.829 --> 00:19:32.069 science providers in this space. And that is 00:19:32.069 --> 00:19:34.730 vastly different from being a contact lens manufacturer. 00:19:35.130 --> 00:19:37.710 And they didn't even pause for breath. Just three 00:19:37.710 --> 00:19:41.940 months later. March 2022 comes the second massive 00:19:41.940 --> 00:19:47.420 deal, the $875 million acquisition of Cook Medical's 00:19:47.420 --> 00:19:50.160 reproductive health business. This move was about 00:19:50.160 --> 00:19:52.920 consolidating the existing established market. 00:19:53.349 --> 00:19:56.349 Cook Medical is a known, respected name in devices. 00:19:56.670 --> 00:19:58.849 So this deal instantly provided Cooper Surgical 00:19:58.849 --> 00:20:01.609 with decades of trust and market presence. The 00:20:01.609 --> 00:20:04.369 acquired assets included Cook Medical's longstanding 00:20:04.369 --> 00:20:08.730 established IVF and OBGYN businesses. So if Generate 00:20:08.730 --> 00:20:10.670 Life Sciences was the investment in the future, 00:20:10.769 --> 00:20:13.190 the genomics, the biobanking Cook Medical was 00:20:13.190 --> 00:20:14.829 the investment in the present. That's a perfect 00:20:14.829 --> 00:20:16.410 way to put it. It's the essential established 00:20:16.410 --> 00:20:19.309 devices and media required for performing IVF 00:20:19.309 --> 00:20:21.630 procedures right now all over the world. Yes. 00:20:22.250 --> 00:20:25.170 Think about all the consumables involved in IVF. 00:20:25.630 --> 00:20:29.009 Specialized culture media, micropipettes, catheters, 00:20:29.170 --> 00:20:31.990 devices for egg retrieval, for embryo transfer. 00:20:32.170 --> 00:20:34.589 These are highly specialized, high margin products 00:20:34.589 --> 00:20:37.230 that fertility clinics rely on every single day. 00:20:37.450 --> 00:20:39.990 So acquiring Cook gave Cooper Surgical those 00:20:39.990 --> 00:20:42.650 proven product lines and, crucially, it gave 00:20:42.650 --> 00:20:45.130 them access to established distribution channels 00:20:45.130 --> 00:20:47.589 and relationships with thousands of fertility 00:20:47.589 --> 00:20:50.220 clinics worldwide. Let's just reflect on the 00:20:50.220 --> 00:20:52.019 sheer scale of this investment for a second. 00:20:52.119 --> 00:20:55.740 $1 .6 billion for genomics, $875 million for 00:20:55.740 --> 00:20:58.500 established IVF devices. That's nearly $2 .5 00:20:58.500 --> 00:21:01.839 billion spent on major acquisitions in this one 00:21:01.839 --> 00:21:04.200 niche market, all within a roughly 15 -month 00:21:04.200 --> 00:21:06.819 window. That's a staggering commitment. What 00:21:06.819 --> 00:21:08.640 did Wall Street think of that sudden spending 00:21:08.640 --> 00:21:11.130 spree? While the market recognized the strategic 00:21:11.130 --> 00:21:13.829 value almost immediately, I mean, while such 00:21:13.829 --> 00:21:16.069 aggressive spending typically raises some debt 00:21:16.069 --> 00:21:18.950 concerns. In this case, it was a clear demonstration 00:21:18.950 --> 00:21:21.970 of intent and intent to dominate a high growth 00:21:21.970 --> 00:21:25.220 sector. The cost is justified by the expected 00:21:25.220 --> 00:21:27.799 returns in this high -margin specialized medical 00:21:27.799 --> 00:21:30.660 segment. It signaled a move away from incremental 00:21:30.660 --> 00:21:32.960 growth and toward market leadership consolidation 00:21:32.960 --> 00:21:35.839 in reproductive health. The duality is just so 00:21:35.839 --> 00:21:38.539 striking. Cooper Vision is maximizing volume, 00:21:38.839 --> 00:21:41.480 efficiency, the consumer subscription model, 00:21:41.579 --> 00:21:44.619 all in a stable, established market. And Cooper 00:21:44.619 --> 00:21:47.279 Surgical is maximizing innovation, high margins, 00:21:47.440 --> 00:21:49.839 and specialized services in a rapid -growth, 00:21:50.000 --> 00:21:52.480 high -stakes B2B market. The only real overlap 00:21:52.480 --> 00:21:54.680 is the underlying corporate infrastructure and 00:21:54.680 --> 00:21:56.819 the capital allocation strategy. And critically, 00:21:56.960 --> 00:21:59.420 the technological and regulatory paths for each 00:21:59.420 --> 00:22:02.210 unit are divergent, aren't they? Completely divergent. 00:22:02.289 --> 00:22:05.450 CVI deals with FDA regulation primarily focused 00:22:05.450 --> 00:22:08.890 on material safety and lens efficacy, you know, 00:22:08.910 --> 00:22:12.450 typical of consumer medical devices. CSI, especially 00:22:12.450 --> 00:22:15.369 with genomics and IVF, deals with complex, often 00:22:15.369 --> 00:22:17.910 regionally variable, and highly scrutinized regulations 00:22:17.910 --> 00:22:20.769 surrounding human reproductive technology and 00:22:20.769 --> 00:22:23.690 clinical outcomes. So managing those two diverse 00:22:23.690 --> 00:22:26.809 regulatory landscapes simultaneously is a critical 00:22:26.809 --> 00:22:29.109 strategic requirement for the leadership. That's 00:22:29.109 --> 00:22:32.119 successful. aggressive pivot in Cooper Surgical 00:22:32.119 --> 00:22:34.599 means they are now not just a medical device 00:22:34.599 --> 00:22:37.480 company, but a critical provider of life science 00:22:37.480 --> 00:22:39.880 and genomic services that are underpinning global 00:22:39.880 --> 00:22:42.089 fertility treatment. And to truly appreciate 00:22:42.089 --> 00:22:44.390 the success of this strategic duality, we have 00:22:44.390 --> 00:22:46.549 to look at the financial results. The figures 00:22:46.549 --> 00:22:49.549 from 2025 derived from our source material clearly 00:22:49.549 --> 00:22:51.710 demonstrate that this dual engine strategy has 00:22:51.710 --> 00:22:54.369 created a massive, financially robust and influential 00:22:54.369 --> 00:22:56.769 enterprise. The numbers really do validate the 00:22:56.769 --> 00:22:58.809 strategy. Let's break down the sheer scale of 00:22:58.809 --> 00:23:01.349 operation using that 2025 data. We're looking 00:23:01.349 --> 00:23:03.430 at a revenue figure that firmly places them in 00:23:03.430 --> 00:23:05.849 the global medical elite. Revenue of U .S. $4 00:23:05.849 --> 00:23:10.359 .09 billion. That $4 billion figure is crucial. 00:23:10.599 --> 00:23:13.920 It confirms that both CVI and CSI are operating 00:23:13.920 --> 00:23:15.859 at scale and that the company is successfully 00:23:15.859 --> 00:23:18.799 generating massive cash flows from two distinct 00:23:18.799 --> 00:23:21.980 operational bases. You don't hit that number 00:23:21.980 --> 00:23:24.480 by relying on a single narrow product line. No. 00:23:24.599 --> 00:23:26.799 And focusing on profitability, the operational 00:23:26.799 --> 00:23:29.380 efficiency is impressive. Their operating income 00:23:29.380 --> 00:23:34.180 was US $683 million. That's a very healthy operating 00:23:34.180 --> 00:23:36.680 margin, which suggests that they're effectively 00:23:36.680 --> 00:23:39.339 managing the vast global supply chain of CVI 00:23:39.339 --> 00:23:41.720 and the specialized R &D and clinical support 00:23:41.720 --> 00:23:43.859 overhead of CSI. And the bottom line confirms 00:23:43.859 --> 00:23:47.319 the success. Net income stood at US $375 million. 00:23:47.599 --> 00:23:50.140 And that robust net profitability is... what 00:23:50.140 --> 00:23:53.559 fuels the kind of aggressive multibillion dollar 00:23:53.559 --> 00:23:55.339 M &A strategy we just detailed in the Cooper 00:23:55.339 --> 00:23:57.259 Surgical segment. You have to have deep pockets 00:23:57.259 --> 00:23:59.519 and consistent performance to make those types 00:23:59.519 --> 00:24:01.660 of market defining moves. The balance sheet also 00:24:01.660 --> 00:24:03.619 reflects a company built not just for short term 00:24:03.619 --> 00:24:06.019 profit, but for long term strategic stability. 00:24:06.359 --> 00:24:08.480 Their total assets were listed at a staggering 00:24:08.480 --> 00:24:12.259 U .S. $12 .4 billion. And even more telling is 00:24:12.259 --> 00:24:16.200 the total equity of U .S. $8 .24 billion. High 00:24:16.200 --> 00:24:19.519 total equity signifies financial solidity. significant 00:24:19.519 --> 00:24:22.019 shareholder value. It gives them leverage and 00:24:22.019 --> 00:24:24.460 resilience, and it assures the market they can 00:24:24.460 --> 00:24:26.359 handle the debt load and integration challenges 00:24:26.359 --> 00:24:28.579 that come with those massive recent acquisitions. 00:24:28.920 --> 00:24:31.599 The sheer human scale required to manage these 00:24:31.599 --> 00:24:34.480 two contrasting businesses globally is also enormous. 00:24:34.799 --> 00:24:38.119 The company employs 15 ,000 employees worldwide, 00:24:38.539 --> 00:24:41.099 and that workforce encompasses everything from 00:24:41.099 --> 00:24:43.339 factory floors turning out billions of lenses 00:24:43.339 --> 00:24:46.660 in CVI to PhD -level geneticists running advanced 00:24:46.660 --> 00:24:49.470 screening laboratories in CSI. Managing a workforce 00:24:49.470 --> 00:24:52.430 of 15 ,000 across those diverse operational models 00:24:52.430 --> 00:24:55.490 is a huge strategic challenge in itself. It requires 00:24:55.490 --> 00:24:57.950 completely different HR, R &D, and regulatory 00:24:57.950 --> 00:25:00.210 compliance departments for each business unit. 00:25:00.390 --> 00:25:02.869 And the person steering this complex ship, making 00:25:02.869 --> 00:25:05.190 sure the two engines don't collide, is the key 00:25:05.190 --> 00:25:08.410 leadership figure, Albert G. White III, the president 00:25:08.410 --> 00:25:11.660 and CEO. I mean, leading a company that simultaneously 00:25:11.660 --> 00:25:14.599 sells a consumer product in a high cost, specialized 00:25:14.599 --> 00:25:17.359 clinical service that requires a remarkable level 00:25:17.359 --> 00:25:20.039 of strategic flexibility and operational mastery. 00:25:20.200 --> 00:25:22.519 It requires an executive focus to then shift 00:25:22.519 --> 00:25:25.900 seamlessly between the high volume cost optimization 00:25:25.900 --> 00:25:29.680 metrics of CVI and the high value clinical outcome 00:25:29.680 --> 00:25:32.799 metrics of CSI. This complexity is why the company's 00:25:32.799 --> 00:25:35.480 status is so significant. And to wrap up their 00:25:35.480 --> 00:25:37.579 standing, the company's California headquarters, 00:25:37.900 --> 00:25:41.220 its listing on the Nasdaq as COO, and most importantly, 00:25:41.420 --> 00:25:44.900 its inclusion as an S &P 500 component, all confirm 00:25:44.900 --> 00:25:47.900 its status. That S &P 500 inclusion, that's the 00:25:47.900 --> 00:25:50.299 stamp of systemic importance. It means the financial 00:25:50.299 --> 00:25:52.180 world views Cooper Companies as one of the most 00:25:52.180 --> 00:25:54.660 reliable, robust and representative stocks in 00:25:54.660 --> 00:25:56.559 the American equity market. Their successful 00:25:56.559 --> 00:25:58.859 execution of this highly differentiated strategic 00:25:58.859 --> 00:26:01.460 duality has earned them a spot at the top table 00:26:01.460 --> 00:26:04.460 of global medical device manufacturing. So they 00:26:04.460 --> 00:26:06.720 successfully navigated decades of organizational 00:26:06.720 --> 00:26:09.859 shifts. They landed on a structurally brilliant 00:26:09.859 --> 00:26:12.839 dual focus. And then they deployed billions of 00:26:12.839 --> 00:26:15.900 dollars to ensure market dominance in both routine 00:26:15.900 --> 00:26:18.859 eye care and complex women's reproductive health. 00:26:19.000 --> 00:26:21.180 That is a compelling blueprint for strategic 00:26:21.180 --> 00:26:24.940 success in the 21st century. So what does this 00:26:24.940 --> 00:26:27.180 deep dive all mean for you? Well, whether you're 00:26:27.180 --> 00:26:29.059 a market analyst tracking medical innovation, 00:26:29.279 --> 00:26:31.720 a health care professional, or simply a learner 00:26:31.720 --> 00:26:34.910 curious about how global corporations structure 00:26:34.910 --> 00:26:37.549 themselves for growth Cooper Companies offers 00:26:37.549 --> 00:26:40.289 a really powerful case study in strategic diversification. 00:26:40.960 --> 00:26:42.559 The core knowledge we've gained today is that 00:26:42.559 --> 00:26:45.079 Cooper Companies is strategically far more complex 00:26:45.079 --> 00:26:48.259 than its public image might suggest. It's a globally 00:26:48.259 --> 00:26:50.420 focused medical device player whose structure 00:26:50.420 --> 00:26:52.779 allows it to dominate two indispensable markets. 00:26:53.180 --> 00:26:56.059 The stable recurring revenue stream of vision 00:26:56.059 --> 00:26:59.440 care via Cooper Vision and the high growth, high 00:26:59.440 --> 00:27:02.079 margin specialized realm of reproductive and 00:27:02.079 --> 00:27:04.690 women's health via Cooper Surgical. We saw CVI 00:27:04.690 --> 00:27:07.369 mastering that razor and blades model, pushing 00:27:07.369 --> 00:27:10.250 into highly specialized profitable niches like 00:27:10.250 --> 00:27:13.089 Ortho -K for myopia control and scleral lenses 00:27:13.089 --> 00:27:15.609 for complex corneal conditions. And we saw the 00:27:15.609 --> 00:27:18.309 fierce commitment of CSI, where nearly $2 .5 00:27:18.309 --> 00:27:21.150 billion was spent in just over a year to acquire 00:27:21.150 --> 00:27:23.890 platform leadership in fertility, IVF, and advanced 00:27:23.890 --> 00:27:27.630 genomics like PGTA testing. This aggressive M 00:27:27.630 --> 00:27:29.750 &A strategy is designed to capture leadership 00:27:29.750 --> 00:27:32.289 in a rapidly evolving high -stakes medical field. 00:27:33.069 --> 00:27:35.250 between the technological and market demands 00:27:35.250 --> 00:27:37.529 of the two units, that's where the company's 00:27:37.529 --> 00:27:39.789 future complexity lies. And it forms the basis 00:27:39.789 --> 00:27:42.869 of our final provocative thought. Indeed. We've 00:27:42.869 --> 00:27:45.009 detailed how Coopervision's focus is on high 00:27:45.009 --> 00:27:47.990 -volume manufacturing and material science, while 00:27:47.990 --> 00:27:50.390 Cooper Surgical is deeply invested in custom 00:27:50.390 --> 00:27:53.349 clinical services, advanced genomics, and highly 00:27:53.349 --> 00:27:56.809 regulated surgical devices. The operational requirements 00:27:56.809 --> 00:28:00.150 for each are vastly different. So this raises 00:28:00.150 --> 00:28:01.970 an important question for you to analyze in the 00:28:01.970 --> 00:28:04.750 future. How will the company manage the inherent 00:28:04.750 --> 00:28:07.809 strategic tension, the technological, the supply 00:28:07.809 --> 00:28:10.710 chain, and the talent divergence between a high 00:28:10.710 --> 00:28:13.029 -volume, price -competitive market like disposable 00:28:13.029 --> 00:28:16.329 contact lenses and a high -cost, rapidly evolving 00:28:16.329 --> 00:28:19.009 market like fertility genomics and women's surgery? 00:28:19.500 --> 00:28:22.140 Right. Success requires two completely different 00:28:22.140 --> 00:28:24.579 organizational mindsets running under one corporate 00:28:24.579 --> 00:28:27.240 umbrella. Tracking how Cooper Companies maintains 00:28:27.240 --> 00:28:29.680 that unity and efficiency across such radical 00:28:29.680 --> 00:28:32.640 diversity. That is the next great strategic test 00:28:32.640 --> 00:28:35.039 as you continue to follow this major player in 00:28:35.039 --> 00:28:36.980 global health care. That's a deep dive that gives 00:28:36.980 --> 00:28:39.059 you plenty to explore and chew on. Thanks for 00:28:39.059 --> 00:28:40.240 joining us. We'll see you next time.