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Hologic (HOLX) to Expand Surgical Portfolio With Bolder Buyout
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Hologic, Inc. (HOLX - Free Report) recently signed a definitive agreement to acquire Bolder Surgical for a deal value of nearly $160 million, subject to working capital and other customary closing adjustments. The acquisition, intended to expand Hologic’s surgical franchise, is expected to close by the end of 2021 after achieving antitrust clearance and fulfilling other closing conditions.
Bolder Surgical is a commercial-stage developer and manufacturer of advanced energy vessel sealing and dissection tools, providing devices to surgical gynecologists in both laparoscopic and open procedures.
The recent acquisition will help Hologic expand its core GYN surgical portfolio and further diversify its product offerings.
Financial Significance
Bolder Surgical is expected to generate around $10 million of product revenues in 2021.
The acquisition, post-completion, is expected to be slightly dilutive to Hologic’s adjusted earnings per share in fiscal 2022, nearly break-even in fiscal 2023, and thereafter accretive.
More on the News
The acquisition will add laparoscopic vessel sealing, dividing and dissecting devices to the Hologic portfolio and allow Hologic to expand the use of Bolder Surgical’s devices to OB/GYN specialists.
Image Source: Zacks Investment Research
Bolder Sugical’s CoolSeal devices have slender, dual-action jaws, allowing for dissection, vessel sealing, and dividing in single devices. Additionally, Bolder Sugical’s JustRight 3 mm vessel sealer and the JustRight 5 mm stapler are intended for small surgical spaces, such as pediatric cases, which can help minimize the need for larger, overpowered instruments.
Strategic Implications
Per Hologic’s management, the acquisition will broaden Hologic’s growing surgical portfolio by adding Bolder Sugical’s differentiated advanced vessel sealing and dissection tools used in laparoscopic procedures. The acquisition will accelerate Hologic’s growth and enhance patient outcomes by leveraging significant commercial resources and strong relationships with OB/GYN specialists.
The acquisition of Bolder Surgical will add to Hologic’s surgical product line as well, including NovaSure endometrial ablation system for the treatment of abnormal uterine bleeding, the MyoSure tissue removal devices for the treatment of intrauterine fibroids and polyps, the Acessa laparoscopic radiofrequency ablation system for the treatment of fibroids, and the Fluent fluid management system for streamlining hysteroscopic procedures.
The Bolder Surgical acquisition marks another good example of Hologic’s capital deployment strategy. It utilizes Hologic’s strong cash flow to add products that leverage existing channel strength and accelerate its growth.
Recent Developments
In October 2021, Hologic launched an expanded Omni suite, a comprehensive gynecological surgical offering. The expanded Omni suite aims to optimize diagnostic and operative hysteroscopy in Europe, Africa and the Middle East (EMEA). The expanded offering includes the Omni 30° hysteroscope, Omni Lok cervical seal and Omni 5 French seal. It adds to Hologic’s existing GYN surgical portfolio, including the MyoSure tissue removal system and the Fluent fluid management system.
In August 2021, Hologic announced that Anthem -- the second-largest health plan in the United States -- updated its medical policy to cover Laparoscopic Radiofrequency Ablation (LAP-RFA), which includes the former’s Acessa procedure. This new coverage further validates laparoscopic radiofrequency ablation for women suffering from uterine fibroids, thereby expanding access to millions of women across the country.
Price Performance
Shares of the company have gained 4% in a year compared with the industry’s rise of 8.8%.
Zacks Rank and Key Picks
Currently, Hologic carries a Zacks Rank #4 (Sell).
Image: Bigstock
Hologic (HOLX) to Expand Surgical Portfolio With Bolder Buyout
Hologic, Inc. (HOLX - Free Report) recently signed a definitive agreement to acquire Bolder Surgical for a deal value of nearly $160 million, subject to working capital and other customary closing adjustments. The acquisition, intended to expand Hologic’s surgical franchise, is expected to close by the end of 2021 after achieving antitrust clearance and fulfilling other closing conditions.
Bolder Surgical is a commercial-stage developer and manufacturer of advanced energy vessel sealing and dissection tools, providing devices to surgical gynecologists in both laparoscopic and open procedures.
The recent acquisition will help Hologic expand its core GYN surgical portfolio and further diversify its product offerings.
Financial Significance
Bolder Surgical is expected to generate around $10 million of product revenues in 2021.
The acquisition, post-completion, is expected to be slightly dilutive to Hologic’s adjusted earnings per share in fiscal 2022, nearly break-even in fiscal 2023, and thereafter accretive.
More on the News
The acquisition will add laparoscopic vessel sealing, dividing and dissecting devices to the Hologic portfolio and allow Hologic to expand the use of Bolder Surgical’s devices to OB/GYN specialists.
Bolder Sugical’s CoolSeal devices have slender, dual-action jaws, allowing for dissection, vessel sealing, and dividing in single devices. Additionally, Bolder Sugical’s JustRight 3 mm vessel sealer and the JustRight 5 mm stapler are intended for small surgical spaces, such as pediatric cases, which can help minimize the need for larger, overpowered instruments.
Strategic Implications
Per Hologic’s management, the acquisition will broaden Hologic’s growing surgical portfolio by adding Bolder Sugical’s differentiated advanced vessel sealing and dissection tools used in laparoscopic procedures. The acquisition will accelerate Hologic’s growth and enhance patient outcomes by leveraging significant commercial resources and strong relationships with OB/GYN specialists.
The acquisition of Bolder Surgical will add to Hologic’s surgical product line as well, including NovaSure endometrial ablation system for the treatment of abnormal uterine bleeding, the MyoSure tissue removal devices for the treatment of intrauterine fibroids and polyps, the Acessa laparoscopic radiofrequency ablation system for the treatment of fibroids, and the Fluent fluid management system for streamlining hysteroscopic procedures.
The Bolder Surgical acquisition marks another good example of Hologic’s capital deployment strategy. It utilizes Hologic’s strong cash flow to add products that leverage existing channel strength and accelerate its growth.
Recent Developments
In October 2021, Hologic launched an expanded Omni suite, a comprehensive gynecological surgical offering. The expanded Omni suite aims to optimize diagnostic and operative hysteroscopy in Europe, Africa and the Middle East (EMEA). The expanded offering includes the Omni 30° hysteroscope, Omni Lok cervical seal and Omni 5 French seal. It adds to Hologic’s existing GYN surgical portfolio, including the MyoSure tissue removal system and the Fluent fluid management system.
In August 2021, Hologic announced that Anthem -- the second-largest health plan in the United States -- updated its medical policy to cover Laparoscopic Radiofrequency Ablation (LAP-RFA), which includes the former’s Acessa procedure. This new coverage further validates laparoscopic radiofrequency ablation for women suffering from uterine fibroids, thereby expanding access to millions of women across the country.
Price Performance
Shares of the company have gained 4% in a year compared with the industry’s rise of 8.8%.
Zacks Rank and Key Picks
Currently, Hologic carries a Zacks Rank #4 (Sell).
A couple of better-ranked stocks from the broader medical space are Alcon Inc (ALC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.
Alcon has an estimated long-term earnings growth rate of 18%.
West Pharmaceutical Services has an estimated long-term earnings growth rate of 27%.