In line with Hologic, Inc.’s (HOLX - Free Report) focus to grow within the promising space of GYN Surgical, the company recently announced encouraging global regulatory approvals for its Omni hysteroscope. In this regard, Health Canada issued a medical device license for Hologic’s Omni hysteroscope, an advanced three-in-one modular scope. Furthermore, the company received CE mark for the same.
Omni Hysteroscope in Details
Hologic claims Omni hysteroscope to have advanced visualization capabilities for both diagnostic and therapeutic hysteroscopic procedures.
The company in this regard noted that a direct visualization of the uterine cavity in women with abnormal bleeding is very useful. This allows accurate identification and collection of quality samples and remove pathology in a safer and more effective manner than traditional methods like blind biopsy and curettage.
In December 2018, Hologic announced the U.S. launch of Omni hysteroscope. According to Hologic, the device is compatible with all MyoSure tissue removal offerings, including MyoSure REACH, MyoSure XL, MyoSure LITE and MyoSure MANUAL devices.
Hologic’s strategy to gain traction from the GYN Surgical segment seems to be aligned with data provided by Prescient & Strategic Intelligence. Per the report, the global hysteroscope market is expected to witness a CAGR of 4.5% between 2016 and 2022.
It is further believed that increasing female geriatric population, growing uterine cancer cases, rising female infertility incidences, increasing cases with abnormal uterine bleeding and rising customer needs of minimally-invasive treatments will boost the global hysteroscope market. In view of these encouraging factors, we believe that the company’s development regarding the Fluent system is strategic and it is likely to broaden customer base.
GYN Surgical at a Glance
After a dull performance in the first half of fiscal 2018, the company has been showing gradual improvement in the GYN Surgical business. Although NovaSure sales declined, we are upbeat about the solid quarterly show by MyoSure. New leadership, easier comparisons and revamped sales and marketing efforts along with product launches are expected to drive growth. However, Novasure sales declined mid-single digit from the prior-year period.
Per Hologic, Myosure has gained the reputation of being the largest product line in the Surgical business. This product line has been consistently delivering strong performance and has seen high-single digit growth in the fiscal first quarter.
We are upbeat about the commercial launch of MyoSure MANUAL device in the United States. Notably, in addition to MyoSure MANUAL, the Myosure products portfolio consists of MyoSure, MyoSure REACH, MyoSure XL, and MyoSure LITE devices.
Going forward, Hologic expects its surgical business to witness strong growth on continued expansion of MyoSure suite of products, stability in NovaSure and growing international business.
Share Price Movement
Hologic has consistently outperformed its industry over the past year. The stock has gained 22.8% in comparison with the 12.3% rise of the industry.
Zacks Rank & Other Key Picks
Hologic currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the broader medical space are Varian Medical Systems (VAR - Free Report) , Illumina, Inc. (ILMN - Free Report) and DexCom, Inc. (DXCM - Free Report) . Notably, each of these stocks currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Varian’slong-term earnings growth rate is expected at 8%.
Illumina’slong-term earnings growth rate is expected at 21.5%.
DexCom’s second-quarter earnings per share are projected to grow 160%.
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