Cooper Companies to enter Japanese contact lens market; CooperVision signs agreement with Rohto Pharmaceutical Companies Ltd., a major supplier of nonprescription ophthalmic products.IRVINE, Calif.--(BW HealthWire)--Jan. 30, 1997--CooperVision Inc., a subsidiary of The Cooper Companies (NYSE/PSE:COO), and Rohto Pharmaceutical Company Ltd., with headquarters in Osaka, Japan, Thursday announced that they had signed an agreement providing Rohto with exclusive marketing rights to market CooperVision's line of proprietary contact lenses contact lenses contact npl → verres mpl de contact contact lenses contact npl → Kontaktlinsen pl contact lenses npl in Japan and nonexclusive marketing rights in certain other Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. countries. The agreement calls for Rohto, a leading manufacturer of contact lens contact lens, thin plastic lens worn between the eye and eyelid that may be used instead of eyeglasses. Actors, models, and others wear them for appearance, and athletes use them for safety and convenience. care products and the largest supplier of non prescription ophthalmic products in Japan, to market lenses manufactured by CooperVision, after Rohto obtains regulatory approval. The companies believe that approval will occur within two years. Rohto will also market CooperVision's line in certain Asian countries outside of Japan. CooperVision's products will be the primary line of contact lenses that Rohto will market. CooperVision will receive an initial payment, and Rohto will make a series of milestone payments as regulatory approval progresses. When marketing begins, CooperVision will receive manufacturing profits. Specific terms of the agreement were not announced. With more than eight million contact lens wearers, Japan is the second largest contact lens market in the world behind the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . More than 60 percent of Japan's contact lens population now wear hard lenses, while in most other major markets of the world, nearly 80 percent wear soft lenses. Today, however, the trend is beginning to change, and soft lenses are becoming more popular in Japan. In 1996, more than 50 percent of people wearing lenses for the first time chose soft lenses. By the year 2000, industry estimates indicate that Japan's population of soft lens wearers will mirror that of the other major countries. Rohto Pharmaceutical Company Ltd. is the leading manufacturer of nonprescription non·pre·scrip·tion adj. Sold legally without a physician's prescription; over-the-counter. ophthalmic products in Japan, holding more than a 33 percent share of the market, and is a leading manufacturer of contact lens care products. Approximately half of Rohto's $300 million in sales are generated by nonprescription ophthalmic products. Rohto is a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. with its two major manufacturing facilities in Japan and the United States, with other facilities in more than 20 other countries. Commenting on the agreement, Yasukuni Yamada, president and chief executive officer of Rohto Pharmaceuticals, noted that the ability to market CooperVision's line of high quality, proprietary contact lenses in Japan will allow Rohto to become a significant participant in the contact lens market, while, at the same time, enhancing their position in the contact lens care business. Thomas Bender, president and chief executive officer of The Cooper Companies, said: "This agreement gives CooperVision a strong strategic position in the Japanese market and leverages the superiority of our proprietary manufacturing process for contact lenses. "We are delighted to have such a well-respected firm as Rohto Pharmaceuticals as our partner in this venture. Rohto's reputation as an aggressive marketer and their success with ophthalmic products lead me to believe that, after regulatory approval, their efforts will generate a significant profit contribution for CooperVision." This press release contains projections and other forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. concerning CooperVision. Actual results could differ materially from these projections. Factors that could cause or contribute to differences include: major changes in business conditions and the economy in general; new competitive inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ ; regulatory and other delays on new products and programs; unexpected changes in reimbursement rates and payer mix payer mix Medical practice The type–eg, Medicaid, Medicare, indeminity insurance, managed care–of monies received by a medical practice. Cf Patient mix, Service mix. ; unforeseen litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; decisions to divest businesses, and the cost of acquisition activity, particularly if a large acquisition is not completed. CooperVision's 1997 sales and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. are expected to grow at mid-teens percentages. The Cooper Companies expects compounded revenue growth in the mid-teens and compounded operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before growth of over 30 percent for the next several years. Cooper expects to grow earnings per share, excluding tax benefits, in the neighborhood of 40 percent in each of the next two years. CooperVision, with headquarters in Irvine and additional manufacturing facilities in Huntington Beach Huntington Beach, city (1990 pop. 181,519), Orange co., S Calif., on the Pacific coast, across from Santa Catalina Island, in an oil-producing area; inc. 1909. It manufactures aerospace vehicles, aircraft parts, optical instruments, and heat transfer equipment. , Calif.; Rochester, N.Y.; and Ontario and Quebec, Canada, markets a broad range of contact lenses for the vision care market. The Cooper Companies and its subsidiaries develop, manufacture and market speciality health care products and provide psychiatric services. -0- NOTE: An interactive telephone system that provides stock quotes, recent press releases and financial data about The Cooper Companies Inc. may be reached toll free at 800/334-1986. Press releases and selected financial data are also available on the World Wide Web at businesswire.com . CONTACT: The Cooper Companies Inc., Irvine Norris Battin 714/597-4700 or 714/673-4299 |
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