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Hologic, Inc. (HOLX - Free Report) recently announced completion of the acquisition of SOMATEX Medical Technologies GmbH, a well-known name in the biopsy site markers and localization technologies space. The buyout deal was finalized at approximately $64 million.
For investors’ note, SOMATEX was previously owned by E-Med Solutions GmbH, Berlin — a group of investors led by German private equity company Westlake Partners.
Following the acquisition, SOMATEX’s Tumark family of tissue markers will be added to Hologic’s growing breast health portfolio. Notably, Tumark markers were distributed by Hologic in the United States prior to the acquisition. Further, the buyout is expected to be slightly accretive to Hologic's non-GAAP earnings per share beginning in fiscal 2021.
With the latest buyout, Hologic aims to strengthen its Breast Health business on a global scale.
Rationale Behind the Buyout
Per Hologic’s management, the recent acquisition paves way for the company to expand its biopsy portfolio by providing a suite of solutions that addresses customers’ needs along with improving the patients’ biopsy experience. The buyout will integrate SOMATEX’s differentiated products to Hologic’s portfolio, thus enabling it to strengthen and further expand its breast marker portfolio. Notably, this portfolio has been demonstrating consistent robust growth of late.
Further, the acquisition will allow Hologic to enhance its sales presence in Europe by expanding its direct channel in Germany and its network of regional and international distributor partners.
Industry Prospects
Per a report by Allied Market Research, the global breast biopsy market was valued at $976.7 million in 2016 and is projected to reach $1,420 million by 2023 at a CAGR of 5.3%. Factors like growing incidence of breast cancer, rising demand for less-invasive breast biopsies and increasing awareness about breast cancer screening are likely to drive the market.
Given the market potential, the recent buyout is likely to boost Hologic’s biopsy portfolio significantly.
Recent Developments in Breast Health
Of late, Hologic has been witnessing a few developments in this business arm.
The company, in December 2020, announced that the SuperSonic MACH 40 ultrasound system is now equipped with 3D ultrasound imaging. As a result, clinicians can now access high-resolution B-mode and ShearWave PLUS elastography 3D volumes for enhanced diagnostic certainty. The same month, Hologic announced the commercial availability of its Genius AI Detection technology post its FDA approval.
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.
Price Performance
Shares of the company have gained 44.8% in the past year compared with the industry and S&P 500’s 23.9% and 17.1% growth, respectively.
Zacks Rank & Other Key Picks
Currently, Hologic carries a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks from the broader medical space are Amedisys, Inc. (AMED - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Integra LifeSciences Holdings Corporation (IART - Free Report) .
IDEXX’s long-term earnings growth rate is estimated at 15.8%. It currently carries a Zacks Rank #2.
Integra’s long-term earnings growth rate is estimated at 9%. The company presently carries a Zacks Rank #2.
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Hologic (HOLX) Completes SOMATEX Buyout, Expands Portfolio
Hologic, Inc. (HOLX - Free Report) recently announced completion of the acquisition of SOMATEX Medical Technologies GmbH, a well-known name in the biopsy site markers and localization technologies space. The buyout deal was finalized at approximately $64 million.
For investors’ note, SOMATEX was previously owned by E-Med Solutions GmbH, Berlin — a group of investors led by German private equity company Westlake Partners.
Following the acquisition, SOMATEX’s Tumark family of tissue markers will be added to Hologic’s growing breast health portfolio. Notably, Tumark markers were distributed by Hologic in the United States prior to the acquisition. Further, the buyout is expected to be slightly accretive to Hologic's non-GAAP earnings per share beginning in fiscal 2021.
With the latest buyout, Hologic aims to strengthen its Breast Health business on a global scale.
Rationale Behind the Buyout
Per Hologic’s management, the recent acquisition paves way for the company to expand its biopsy portfolio by providing a suite of solutions that addresses customers’ needs along with improving the patients’ biopsy experience. The buyout will integrate SOMATEX’s differentiated products to Hologic’s portfolio, thus enabling it to strengthen and further expand its breast marker portfolio. Notably, this portfolio has been demonstrating consistent robust growth of late.
Further, the acquisition will allow Hologic to enhance its sales presence in Europe by expanding its direct channel in Germany and its network of regional and international distributor partners.
Industry Prospects
Per a report by Allied Market Research, the global breast biopsy market was valued at $976.7 million in 2016 and is projected to reach $1,420 million by 2023 at a CAGR of 5.3%. Factors like growing incidence of breast cancer, rising demand for less-invasive breast biopsies and increasing awareness about breast cancer screening are likely to drive the market.
Given the market potential, the recent buyout is likely to boost Hologic’s biopsy portfolio significantly.
Recent Developments in Breast Health
Of late, Hologic has been witnessing a few developments in this business arm.
The company, in December 2020, announced that the SuperSonic MACH 40 ultrasound system is now equipped with 3D ultrasound imaging. As a result, clinicians can now access high-resolution B-mode and ShearWave PLUS elastography 3D volumes for enhanced diagnostic certainty. The same month, Hologic announced the commercial availability of its Genius AI Detection technology post its FDA approval.
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.
Price Performance
Shares of the company have gained 44.8% in the past year compared with the industry and S&P 500’s 23.9% and 17.1% growth, respectively.
Zacks Rank & Other Key Picks
Currently, Hologic carries a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks from the broader medical space are Amedisys, Inc. (AMED - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Integra LifeSciences Holdings Corporation (IART - Free Report) .
Amedisys’ long-term earnings growth rate is estimated at 14.8%. The company presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
IDEXX’s long-term earnings growth rate is estimated at 15.8%. It currently carries a Zacks Rank #2.
Integra’s long-term earnings growth rate is estimated at 9%. The company presently carries a Zacks Rank #2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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