Leading player in the field of women's health, Hologic, Inc. (HOLX - Free Report) recently announced that its Cynosure division has launched the FDA-approved TempSure Surgical RF technology in North America. Notably, this latest product belonging to the TempSure radiofrequency (RF) platform allows surgical and non-surgical aesthetic procedures across several specialties on a single device.
Following the FDA’s inquiry on products used in energy-based women’s health procedures, Cynosure has decided to continue marketing its MonaLisa Touch CO2 laser. The company has also returned TempSure Vitalia hand pieces and probes to the market. These developments are expected to boost the top-line contribution from Cynosure division in the near term.
According to MarketsandMarkets, the global medical aesthetics market is expected to reach a worth of $13.29 billion, at a CAGR of 10.8% from 2016 to 2021. Thus, the company clearly has bountiful opportunities in this niche market, both globally and internationally.
A Glimpse of the Cynosure Business
Hologic has been seeing declining Cynosure sales as a result of the FDA’s letter regarding certain women's health procedures and the company’s voluntary decision to suspend marketing of its TempSure Vitalia product. Notably, sales in the fiscal fourth quarter were more than $15 million lower than expected due to refunds and rebates related to previous sales of Vitalia handpieces, unused probes, and TempSure systems along with decreased MonaLisa Touch sales.
We believe the latest progress will help the company overcome these obstacles and deliver solid performance.
Share Price Movement
Hologic has consistently outperformed its industry over the past six months. The stock has gained 6% versus 5.5% decline of the industry.
Zacks Rank & Key Picks
Hologic currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Veeva Systems (VEEV - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and Surmodics, Inc. (SRDX - Free Report) .
Veeva Systems’ long-term earnings growth rate is estimated at 19.5%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Integer Holdings has an expected earnings growth rate of 30.3% for 2018 and a Zacks Rank #1.
Surmodics’ long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2 (Buy).
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>