Hologic, Inc. ( HOLX Quick Quote HOLX - Free Report) recently expanded its Global Access Initiative (“GAI”) with the addition of the Aptima SARS-CoV-2 assay. The GAI’s all-inclusive pricing structure is anticipated to make the Aptima SARS-CoV-2 assay more accessible.
It is worth noting that throughout the pandemic, in addition to ensuring routine supply of important diagnostic tests for other viral infections, Hologic has sent more than 700,000 COVID-19 tests to resource-constrained nations till date.
Per Hologic management, the company is dedicated toward establishing diagnostic capacity and equitable health systems via affordable and accessible technical innovation. The addition of the Aptima SARS-CoV-2 assay to the GAI enables countries to respond to the pandemic and handle new COVID-19 waves.
Few Words on GAI
The GAI aims to improve accessibility to critical diagnostic testing in countries with limited resources. This program was unveiled by Hologic at the 2018 International AIDS Conference with a groundbreaking all-inclusive pricing structure that requires no upfront cost or capital expenditure. The products qualified for the GAI involved molecular assays for human immunodeficiency virus-1 (HIV-1), hepatitis B and C (HBV and HCV) and human papillomavirus or HPV, along with the ThinPrep Pap test for cervical cancer screening.
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Hologic’s existing collaborations with the World Health Organization (WHO), UNICEF, the Global Fund to Fight AIDS, Tuberculosis, and Malaria, and the U.S. President’s Emergency Plan for AIDS Relief, have helped countries to obtain SARS-CoV-2 tests at market pricing under existing procurement mechanisms throughout the ongoing pandemic. The WHO Diagnostics Consortium has collected crucial volumes of the Aptima SARS-CoV-2 assay for countries with limited market access.
Image Source: Zacks Investment Research Industry Prospects Per a report by Fortune Business Insights published in GlobeNewswire, the global COVID-19 diagnostics market is expected to see a CAGR of 7.9% from 2020 to 2027. The uncontrolled spread of coronavirus, and several efforts undertaken by medical and regulatory bodies to encourage innovation and accelerate research in the development of coronavirus detection tools are projected to drive market growth. Notable Developments
In December 2021, Hologic completed the regulatory filings required to make Panther Trax available in several countries and regions. The Panther Trax launch represents the newest addition to the Panther Scalable Solutions portfolio of products. Panther Trax provides complete automation in order to address high-volume testing demands and will be commercially available in the United States, Europe, Canada, Australia and New Zealand.
In November 2021, the company completed its previously announced (Oct 14) acquisition of Bolder Surgical. The transaction expands the Hologic Surgical portfolio by adding laparoscopic vessel sealing, dividing and dissecting devices. This buyout is also anticipated to allow the company to extend the use of Bolder's devices to OB/GYN specialists.
Share Price Performance
The stock has underperformed its
industry over the past year. It has declined 9.3% against the industry’s growth of 3.8%. Zacks Rank and Key Picks
Currently, Hologic carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space that investors can consider are
AMN Healthcare Services, Inc. ( AMN Quick Quote AMN - Free Report) , Apollo Endosurgery, Inc. ( APEN Quick Quote APEN - Free Report) and Thermo Fisher Scientific Inc. ( TMO Quick Quote TMO - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare, carrying a Zacks Rank #1, has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 66.1% versus the 54.9% industry decline.
Apollo Endosurgery, carrying a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 7%. The company‘s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 25.6%, on average.
Apollo Endosurgery has outperformed its industry in the past year. APEN has gained 125.6% compared with the industry’s 1.2% growth.
Thermo Fisher, sporting a Zacks Rank #2, has a long-term earnings growth rate of 14%. The company’s earnings surpassed estimates in the trailing four quarters, delivering an average surprise of 9%.
Thermo Fisher has outperformed its industry in the past year. TMO has rallied 23.6% compared with the industry’s 1.1% rise.