Hologic, Inc. (HOLX - Free Report) announced the expansion of the Panther Scalable Solutions (PSS) portfolio with product launches. The products are now commercially available in the United States and Europe. While Panther Plus and Panther Link are now available, the Panther Trax is expected to be available in the United States and Europe later in 2020.
Within the company’s PSS portfolio, the Panther system (launched in Europe in 2010) is the foundation for optional add-ons like Panther Fusion, Panther Plus, Panther Link and Panther Trax.
With the portfolio expansion, Hologic aims at strengthening foothold in the Molecular Diagnostics business on a global scale. Notably, the Molecular Diagnostics business is a segment of the company’s Diagnostics arm.
Significance of the Launch
The Panther system consists of a list of evaluations including tests for women’s health, sexually transmitted infections, respiratory health, and viral load and Open Access functionality for laboratory developed tests. Add-ons like the Panther Fusion (launched in 2016) will provide additional IVD menu and Open Access functionality.
The latest optional offerings will enable laboratories to improve operational capacity and testing volumes per their convenience, while subsequently building on the flexibility and streamlined user experience required by them.
Per a report by Mordor Intelligence, the global molecular diagnostics market was estimated to be valued at $7,854.45 million in 2018 and is projected to reach $13,340.35 million by 2024, witnessing a CAGR of 9.2% between 2019 and 2024. Factors like technological advancements and rising demands for point-of-care diagnostics are expected to drive the market.
Given the market potential, the portfolio expansion is well-timed.
Recent Developments in Molecular Diagnostics
Of late, Hologic has been registering rise in consumable sales, strongly backed by developments in the company’s Molecular Diagnostics arm. It has been working toward placing more Panthers platforms with increased evaluation options in additional countries.
Panther Fusion being one of the major contributors, international growth within molecular diagnostics has been quite remarkable, with respect to both speed and consistency. Hologic has been shipping more than 200 Panther systems annually over the last few years.
Domestic growth has been propelled by strong customer adoption, resulting in greater number of customers shifting to the company’s large installed base of Panther instruments.
Shares of Hologic have gained 21.4% in the past year compared with the industry’s 10.6% rally.
Zacks Rank & Other Key Picks
Currently, the company carries a Zacks Rank #2 (Buy).
Other top-ranked stocks from the broader medical space include LeMaitre Vascular, Inc. (LMAT - Free Report) , Hill-Rom Holdings, Inc. (HRC - Free Report) and ResMed Inc. (RMD - Free Report) .
LeMaitre currently holds a Zacks Rank #2 and has a projected long-term earnings growth rate of 10%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hill-Rom’s long-term earnings growth rate is estimated to be 11.1%. The company presently carries a Zacks Rank of 2.
ResMed’s long-term earnings growth rate is expected to be 12%. It currently has a Zacks Rank #1.
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