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Hologic (HOLX) Buys Endomag to Boost Breast Cancer Solutions
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Hologic, Inc. (HOLX - Free Report) announced that it has completed the previously announced acquisition of Endomagnetics Limited (Endomag), a UK-based developer of breast cancer surgery technologies, for approximately $310 million. This strategic move aims to bolster Hologic's breast surgery portfolio, offering surgeons and radiologists an expanded range of innovative solutions for breast cancer procedures. The acquisition reflects Hologic’s commitment to advancing women's health and improving patient outcomes through cutting-edge technologies.
At the core of Endomag’s product platform is the Sentimag localization system, a non-radioactive surgical guidance tool that combines tissue localization and breast cancer staging. The Sentimag system uses a probe similar to a metal detector to identify Endomag’s magnetic seed (Magseed) and liquid tracer (Magtrace), facilitating tumor removal and minimally invasive staging procedures.
Significance of the Acquisition
Per Hologic, the acquisition of Endomag is a pivotal step for the company in enhancing its breast health portfolio with advanced technologies. The acquisition will add Endomag’s popular wireless breast surgery localization and lymphatic tracing solutions to Hologic’s portfolio. It will also add innovative products such as the Magseed marker for pre-surgery tissue localization, the Magtrace lymphatic tracer for breast cancer staging and the Sentimag platform that supports both functions.
These technologies are expected to complement Hologic's existing offerings and provide a more comprehensive suite of options for breast cancer treatment.
More on the News
Erik Anderson, president of Breast and Skeletal Health Solutions at Hologic, highlighted the synergy between the two companies, emphasizing the shared commitment to women's health and the potential to improve patient care. Endomag’s solutions, which generated approximately $35 million in revenues in 2023, are set to enhance user experience and offer more tailored treatment options.
The acquisition is expected to be slightly dilutive to Hologic’s non-GAAP earnings per share in fiscal 2024, break even in 2025 and be accretive thereafter. This move underscores Hologic’s strategic focus on expanding its influence in the breast cancer treatment landscape, ultimately aiming to redefine the standard of care for breast cancer intervention.
Industry Prospects
Per a report in B10Space, the global breast cancer diagnostics market was valued at $4.49 billion in 2023. It is anticipated to reach $9 billion by 2033 at a CAGR of 7.2%.
The robust growth is likely due to various factors contributing to increased detection and treatment options. Screening recommendations and advancements in diagnostic imaging, such as digital breast tomosynthesis, have led to the identification of smaller tumors with lower metastatic potential. The breast cancer market is experiencing a surge, driven by advancements in screening technology and comprehensive treatment approaches.
Price Performance
Shares of Hologic have increased 9% so far this year compared with a 7.3% rise in the industry. The S&P 500 has witnessed a 14.1% rise in the same time frame.
Quest Diagnostics has an estimated long-term growth rate of 5.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.67%.
Quest Diagnostics shares have gained 3.2% compared with the industry’s 10.9% rise so far this year.
Universal Health Services has an estimated long-term growth rate of 15.20%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 8.12%.
Universal Health Services has gained 17.5% compared with the industry's 10.2% rise so far this year.
Haemonetics has an estimated long-term growth rate of 12.0%. HAE’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.24%.
Haemonetics’ shares have increased 7.1% compared with the industry's 3.2% rise so far this year.
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Hologic (HOLX) Buys Endomag to Boost Breast Cancer Solutions
Hologic, Inc. (HOLX - Free Report) announced that it has completed the previously announced acquisition of Endomagnetics Limited (Endomag), a UK-based developer of breast cancer surgery technologies, for approximately $310 million. This strategic move aims to bolster Hologic's breast surgery portfolio, offering surgeons and radiologists an expanded range of innovative solutions for breast cancer procedures. The acquisition reflects Hologic’s commitment to advancing women's health and improving patient outcomes through cutting-edge technologies.
At the core of Endomag’s product platform is the Sentimag localization system, a non-radioactive surgical guidance tool that combines tissue localization and breast cancer staging. The Sentimag system uses a probe similar to a metal detector to identify Endomag’s magnetic seed (Magseed) and liquid tracer (Magtrace), facilitating tumor removal and minimally invasive staging procedures.
Significance of the Acquisition
Per Hologic, the acquisition of Endomag is a pivotal step for the company in enhancing its breast health portfolio with advanced technologies. The acquisition will add Endomag’s popular wireless breast surgery localization and lymphatic tracing solutions to Hologic’s portfolio. It will also add innovative products such as the Magseed marker for pre-surgery tissue localization, the Magtrace lymphatic tracer for breast cancer staging and the Sentimag platform that supports both functions.
These technologies are expected to complement Hologic's existing offerings and provide a more comprehensive suite of options for breast cancer treatment.
More on the News
Erik Anderson, president of Breast and Skeletal Health Solutions at Hologic, highlighted the synergy between the two companies, emphasizing the shared commitment to women's health and the potential to improve patient care. Endomag’s solutions, which generated approximately $35 million in revenues in 2023, are set to enhance user experience and offer more tailored treatment options.
The acquisition is expected to be slightly dilutive to Hologic’s non-GAAP earnings per share in fiscal 2024, break even in 2025 and be accretive thereafter. This move underscores Hologic’s strategic focus on expanding its influence in the breast cancer treatment landscape, ultimately aiming to redefine the standard of care for breast cancer intervention.
Industry Prospects
Per a report in B10Space, the global breast cancer diagnostics market was valued at $4.49 billion in 2023. It is anticipated to reach $9 billion by 2033 at a CAGR of 7.2%.
The robust growth is likely due to various factors contributing to increased detection and treatment options. Screening recommendations and advancements in diagnostic imaging, such as digital breast tomosynthesis, have led to the identification of smaller tumors with lower metastatic potential. The breast cancer market is experiencing a surge, driven by advancements in screening technology and comprehensive treatment approaches.
Price Performance
Shares of Hologic have increased 9% so far this year compared with a 7.3% rise in the industry. The S&P 500 has witnessed a 14.1% rise in the same time frame.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Currently, Hologic carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Quest Diagnostics (DGX - Free Report) , Universal Health Services (UHS - Free Report) , and Haemonetics (HAE - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quest Diagnostics has an estimated long-term growth rate of 5.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.67%.
Quest Diagnostics shares have gained 3.2% compared with the industry’s 10.9% rise so far this year.
Universal Health Services has an estimated long-term growth rate of 15.20%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 8.12%.
Universal Health Services has gained 17.5% compared with the industry's 10.2% rise so far this year.
Haemonetics has an estimated long-term growth rate of 12.0%. HAE’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.24%.
Haemonetics’ shares have increased 7.1% compared with the industry's 3.2% rise so far this year.