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Hologic's Panther Fusion Signals More Molecular Diagnostics Upside
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Key Takeaways
Hologic's Panther Fusion boosts growth with more than 20 approved assays and strong global adoption.
BV, CV/TV test has become Hologic's second-largest assay, with large untapped U.S. testing potential.
One-third of HOLX customers use Fusion, with new assays and premium pricing set to drive future expansion.
Hologic’s (HOLX - Free Report) fully automated, high-throughput Panther platform remains the foundation of its molecular diagnostics business. The Panther Fusion module, a 2016 addition to the base system, provides an expanded and growing in-vitro diagnostics (IVD) menu, as well as Open Access functionality to run laboratory-developed tests (LDTs). Particularly, during the pandemic, placements of Panther rose sharply, doubling its size to more than 3,300 today. With a menu spanning more than 20 approved assays on the Panther and Panther Fusion platform, worldwide Panther utilization continues to reach new levels.
Much of Hologic’s molecular diagnostics growth has come from converting the existing manual testing to the Panther system. One such example is the BV, CV/TV. Launched in 2019, it has now grown to become Hologic’s second-largest assay globally. Still, the opportunity remains vast with more than 20 million U.S. women experiencing vaginitis each year, and less than 40% of them being tested, often with older manual testing methods. The Hologic Diagnostics team has been making great progress to address this gap by driving awareness and establishing reimbursement for the test.
This year, respiratory assays have also delivered strong growth, supported by an unusually severe flu season. These assays run on the Fusion sidecar, which has boosted customer demand as they adopt more menus. Panther Fusion is shaping up to be a key growth driver for future Diagnostics growth, with the company planning to diversify the menu over the coming years, with IVD tests for Gastrointestinal Infections and hospital-acquired infections.
For Hologic, the goal is to ensure each customer has a Fusion capability within the lab rather than pairing every Panther with a Fusion. Roughly one-third of its customers currently have Fusion, suggesting ample room for broader rollout over the company’s strategic horizon. Management also noted that while legacy women’s health assays on Panther are priced lower, the expanded menu at Fusion is expected to carry a premium pricing.
Updates From Hologic’s Competitors
Thermo Fisher Scientific (TMO - Free Report) recently completed two acquisitions. It acquired Sanofi’s state-of-the-art sterile fill-finish and packaging site in Ridgefield, NJ, marking an expansion of its strategic partnership to enable additional U.S. drug product manufacturing. Thermo Fisher also completed the acquisition of Solventum’s Purification & Filtration business, strengthening its bioproduction offerings with advanced filtration technologies that improve quality and efficiency across upstream and downstream workflows.
Abbott’s (ABT - Free Report) Navitor transcatheter aortic valve implantation (TAVI) system recently received CE Mark to treat people with symptomatic, severe aortic stenosis who are at low or intermediate risk for open-heart surgery. This follows the 2021 CE Mark for Navitor to treat people with symptomatic, severe aortic stenosis who are at high or extreme surgical risk. In addition, Abbott received CE Mark for the Esprit BTK Everolimus Eluting Resorbable Scaffold System (Esprit BTK System), a groundbreaking innovation for people with peripheral artery disease (PAD) below the knee (BTK).
HOLX Stock Performance, Valuation and Estimates
In the past six months, Hologic shares have rallied 6.7% against the industry’s 11.2% fall.
Image Source: Zacks Investment Research
Hologic is trading at a forward five-year price-to-earnings of 14.84X, lower than the industry average of 28.05X. The stock carries a Value Score of B at present.
Image Source: Zacks Investment Research
See how the consensus estimates for Hologic’s fiscal 2025 and 2026 earnings currently stand.
Image: Bigstock
Hologic's Panther Fusion Signals More Molecular Diagnostics Upside
Key Takeaways
Hologic’s (HOLX - Free Report) fully automated, high-throughput Panther platform remains the foundation of its molecular diagnostics business. The Panther Fusion module, a 2016 addition to the base system, provides an expanded and growing in-vitro diagnostics (IVD) menu, as well as Open Access functionality to run laboratory-developed tests (LDTs). Particularly, during the pandemic, placements of Panther rose sharply, doubling its size to more than 3,300 today. With a menu spanning more than 20 approved assays on the Panther and Panther Fusion platform, worldwide Panther utilization continues to reach new levels.
Much of Hologic’s molecular diagnostics growth has come from converting the existing manual testing to the Panther system. One such example is the BV, CV/TV. Launched in 2019, it has now grown to become Hologic’s second-largest assay globally. Still, the opportunity remains vast with more than 20 million U.S. women experiencing vaginitis each year, and less than 40% of them being tested, often with older manual testing methods. The Hologic Diagnostics team has been making great progress to address this gap by driving awareness and establishing reimbursement for the test.
This year, respiratory assays have also delivered strong growth, supported by an unusually severe flu season. These assays run on the Fusion sidecar, which has boosted customer demand as they adopt more menus. Panther Fusion is shaping up to be a key growth driver for future Diagnostics growth, with the company planning to diversify the menu over the coming years, with IVD tests for Gastrointestinal Infections and hospital-acquired infections.
For Hologic, the goal is to ensure each customer has a Fusion capability within the lab rather than pairing every Panther with a Fusion. Roughly one-third of its customers currently have Fusion, suggesting ample room for broader rollout over the company’s strategic horizon. Management also noted that while legacy women’s health assays on Panther are priced lower, the expanded menu at Fusion is expected to carry a premium pricing.
Updates From Hologic’s Competitors
Thermo Fisher Scientific (TMO - Free Report) recently completed two acquisitions. It acquired Sanofi’s state-of-the-art sterile fill-finish and packaging site in Ridgefield, NJ, marking an expansion of its strategic partnership to enable additional U.S. drug product manufacturing. Thermo Fisher also completed the acquisition of Solventum’s Purification & Filtration business, strengthening its bioproduction offerings with advanced filtration technologies that improve quality and efficiency across upstream and downstream workflows.
Abbott’s (ABT - Free Report) Navitor transcatheter aortic valve implantation (TAVI) system recently received CE Mark to treat people with symptomatic, severe aortic stenosis who are at low or intermediate risk for open-heart surgery. This follows the 2021 CE Mark for Navitor to treat people with symptomatic, severe aortic stenosis who are at high or extreme surgical risk. In addition, Abbott received CE Mark for the Esprit BTK Everolimus Eluting Resorbable Scaffold System (Esprit BTK System), a groundbreaking innovation for people with peripheral artery disease (PAD) below the knee (BTK).
HOLX Stock Performance, Valuation and Estimates
In the past six months, Hologic shares have rallied 6.7% against the industry’s 11.2% fall.
Image Source: Zacks Investment Research
Hologic is trading at a forward five-year price-to-earnings of 14.84X, lower than the industry average of 28.05X. The stock carries a Value Score of B at present.
Image Source: Zacks Investment Research
See how the consensus estimates for Hologic’s fiscal 2025 and 2026 earnings currently stand.
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.