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The Role of M&A in Hologic's Growth Story: Are More Deals in Sight?
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Key Takeaways
Hologic leverages tuck-in M&A to strengthen its franchises, boost revenue, and drive global growth.
Biotheranostics positions Hologic in oncology, with BCI test adoption still in early stages.
Hologic expands Breast Health and GYN Surgical growth via Endomagnetics and Gynesonics acquisitions.
Hologic (HOLX - Free Report) combines organic and inorganic innovation to drive future growth. The company’s M&A strategy targets high-growth, strategic areas within its franchises to strengthen its market position and build a resilient global growth portfolio. The emphasis is on tuck-in deals that leverage its existing strengths, boost revenue, and contribute to earnings growth over time.
In Diagnostics, Hologic’s 2021 acquisition of Biotheranostics marked its entry into the rapidly growing oncology market. That same year, its Breast Cancer Index (BCI) test became the only gene expression assay recognised by the National Comprehensive Cancer Network (“NCCN”) to predict the benefit of extended endocrine therapy for patients with early-stage HR-positive breast cancer. Although adoption and coverage of the BCI test is steadily growing, management believes they are still in the early stages of market penetration and expects Biotheranostics to be a key growth platform in the coming years.
In Breast Health, Hologic acquired UK-based Endomagnetics in 2024, bringing its wireless breast surgery localization and lymphatic tracing solutions to the breast surgery portfolio. Endomag contributed nearly $20 million of revenue in the fiscal 2025 third quarter and now supports Hologic’s organic growth.
Earlier this year, the company completed the Gynesonics acquisition, which further bolstered its International Surgical growth prospects. Their flagship Sonata System expanded the minimally invasive suite of solutions for heavy periods and fibroids. With women often waiting an average of 3.5 years to get a fibroid treatment, mostly resulting in hysterectomy, Hologic sees an opportunity to get more women treated sooner with minimally invasive procedures.
Hologic’s fortress balance sheet underpins all these acquisitions. The company continues to seek similar deals like Endomags, Gynesonics, and Biotheranostics, while strengthening its capabilities over the past few years at both divisional and corporate levels. Management notes a strong pipeline of sizable deals but aims to remain patient, and take action from a position of strength.
M&A Updates From Hologic Competitors
Boston Scientific (BSX - Free Report) had quite a few acquisitions this year, including SoniVie Ltd. (SoniVie), where it previously held a 10% equity stake. The buyout expanded BSX’s Interventional Cardiology Therapies offerings with ultrasound-based renal denervation therapy for the treatment of hypertension. Boston Scientific also acquired Intera Oncology, Inc. (Intera), which added a complementary therapy to the Interventional Oncology portfolio to treat both primary and metastatic forms of liver cancer.
Netherlands-based QIAGEN N.V. (QGEN - Free Report) acquired Genoox in May, a provider of AI-powered software that enables clinical labs to scale and accelerate the processing of complex genetic tests. The acquisition adds Franklin, Genoox’s flagship cloud-based community platform, to the QIAGEN Digital Insights (QDI) portfolio, strengthening the company’s leadership in genetic interpretation for clinical genomics applications. Additionally, the acquisition also paves the way to integrate QIAGEN’s genomic content into the Franklin platform.
HOLX Stock Performance, Valuation and Estimates
Year to date, Hologic shares have fell 7.7% compared to the industry’s 8.5% fall.
Image Source: Zacks Investment Research
Hologic is trading at a forward five-year price-to-sales of 3.49X, lower than the industry average of 4.07X. The stock carries a Value Score of B at present.
Image Source: Zacks Investment Research
Consensus estimates for Hologic’s fiscal 2025 earnings have edged up 0.5% in the past 90 days.
Image: Bigstock
The Role of M&A in Hologic's Growth Story: Are More Deals in Sight?
Key Takeaways
Hologic (HOLX - Free Report) combines organic and inorganic innovation to drive future growth. The company’s M&A strategy targets high-growth, strategic areas within its franchises to strengthen its market position and build a resilient global growth portfolio. The emphasis is on tuck-in deals that leverage its existing strengths, boost revenue, and contribute to earnings growth over time.
In Diagnostics, Hologic’s 2021 acquisition of Biotheranostics marked its entry into the rapidly growing oncology market. That same year, its Breast Cancer Index (BCI) test became the only gene expression assay recognised by the National Comprehensive Cancer Network (“NCCN”) to predict the benefit of extended endocrine therapy for patients with early-stage HR-positive breast cancer. Although adoption and coverage of the BCI test is steadily growing, management believes they are still in the early stages of market penetration and expects Biotheranostics to be a key growth platform in the coming years.
In Breast Health, Hologic acquired UK-based Endomagnetics in 2024, bringing its wireless breast surgery localization and lymphatic tracing solutions to the breast surgery portfolio. Endomag contributed nearly $20 million of revenue in the fiscal 2025 third quarter and now supports Hologic’s organic growth.
Earlier this year, the company completed the Gynesonics acquisition, which further bolstered its International Surgical growth prospects. Their flagship Sonata System expanded the minimally invasive suite of solutions for heavy periods and fibroids. With women often waiting an average of 3.5 years to get a fibroid treatment, mostly resulting in hysterectomy, Hologic sees an opportunity to get more women treated sooner with minimally invasive procedures.
Hologic’s fortress balance sheet underpins all these acquisitions. The company continues to seek similar deals like Endomags, Gynesonics, and Biotheranostics, while strengthening its capabilities over the past few years at both divisional and corporate levels. Management notes a strong pipeline of sizable deals but aims to remain patient, and take action from a position of strength.
M&A Updates From Hologic Competitors
Boston Scientific (BSX - Free Report) had quite a few acquisitions this year, including SoniVie Ltd. (SoniVie), where it previously held a 10% equity stake. The buyout expanded BSX’s Interventional Cardiology Therapies offerings with ultrasound-based renal denervation therapy for the treatment of hypertension. Boston Scientific also acquired Intera Oncology, Inc. (Intera), which added a complementary therapy to the Interventional Oncology portfolio to treat both primary and metastatic forms of liver cancer.
Netherlands-based QIAGEN N.V. (QGEN - Free Report) acquired Genoox in May, a provider of AI-powered software that enables clinical labs to scale and accelerate the processing of complex genetic tests. The acquisition adds Franklin, Genoox’s flagship cloud-based community platform, to the QIAGEN Digital Insights (QDI) portfolio, strengthening the company’s leadership in genetic interpretation for clinical genomics applications. Additionally, the acquisition also paves the way to integrate QIAGEN’s genomic content into the Franklin platform.
HOLX Stock Performance, Valuation and Estimates
Year to date, Hologic shares have fell 7.7% compared to the industry’s 8.5% fall.
Image Source: Zacks Investment Research
Hologic is trading at a forward five-year price-to-sales of 3.49X, lower than the industry average of 4.07X. The stock carries a Value Score of B at present.
Image Source: Zacks Investment Research
Consensus estimates for Hologic’s fiscal 2025 earnings have edged up 0.5% in the past 90 days.
Image Source: Zacks Investment Research
HOLX stock currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.