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Hologic's (HOLX) New AI Technology Now Available Post FDA Nod

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Hologic, Inc. (HOLX - Free Report) recently announced the commercial availability of its Genius AI Detection technology post its FDA approval. Notably, the latest technology is a deep-learning-based software which has been designed to aid radiologists to detect subtle potential cancers in breast tomosynthesis (an imaging or X-ray technique used to screen for early signs of breast cancer in women with no symptoms) images.

For investors’ note, the Genius AI Detection software is the only 3D computer-aided detection (“CAD”) solution that supports Hologic’s other tomosynthesis imaging technology (Clarity HD and 3DQuorum imaging) along with standard-resolution tomosynthesis.

With the latest commercial availability, Hologic aims to strengthen its foothold in the global Mammography Solutions business. Notably, Mammography Solutions is a segment of its broader Breast Health arm.

Significance of the Approval

The latest technology is an important step toward the early detection of breast cancer. Studies have demonstrated that the Genius AI Detection software aids in the identification and early detection of cancer when used with the Genius 3D Mammography exam. The new technology highlights areas with subtle potential cancers that can prove to be difficult to detect, for further examination by the radiologist. It is also designed to provide higher sensitivity and a false-positive rate which is much lower than Hologic’s previous-generation CAD products.

Per management, the software is expected to improve cancer detection, optimize workflow and enhance patient experience at every step of breast health care. Further, the software also enables the radiologist to prioritize the most concerning patient cases, which is likely to lessen the cycle between screening and diagnostic follow-up. This is expected to ultimately lead to improved patient outcomes.

Industry Prospects

Per a report by Markets And Markets, the global breast imaging market is estimated to grow from $3.7 billion in 2020 to $5.4 billion by 2025 at a CAGR of 8.1%. Factors like technological advancements, rising prevalence of breast cancer and growing awareness of early detection of the same are expected to drive the market.

Given the market potential, the enhancements to its Unifi Analytics platform is expected to significantly boost Hologic’s Breast Health business.

Recent Developments in Breast Health

Of late, Hologic has been witnessing a few developments in this business arm.

The company, in November, equipped its Unifi Analytics platform with innovative updates. The enhanced platform is available as Unifi Analytics 1.2.

The company announced the commercial launch of its 3DQuorum Imaging Technology, Powered by Genius AI, in Europe in October. The same month, Hologic entered into a multi-year partnership with the Black Women’s Health Imperative (a non-profit organization created by black women) to work toward decreasing breast cancer screening disparities for black women.

In August, the company announced the addition of improved features to its Brevera Breast Biopsy System with CorLumina Imaging Technology. Also in August, Hologic entered into a definitive collaboration with RadNet, Inc. to advance the use of AI in breast health.

Price Performance

Shares of the company have gained 35.9% in the past year compared with the industry and S&P 500’s 15.6% and 17.9% growth, respectively.

Zacks Rank & Other Key Picks

Currently, Hologic flaunts a Zacks Rank #1 (Strong Buy).

A few other top-ranked stocks from the broader medical space are ResMed Inc. (RMD - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Align Technology, Inc. (ALGN - Free Report) .

ResMed’s long-term earnings growth rate is estimated at 14.5%. The company presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher’s long-term earnings growth rate is estimated at 18%. It currently carries a Zacks Rank #2.

Align Technology’s long-term earnings growth rate is estimated at 18.3%. It currently carries a Zacks Rank #2.

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