Hologic’s Breast Health segment
Hologic’s (HOLX) global Breast Health segment derives a significant portion of its revenues from new products and services, which complement the company’s Genius 3D mammography platform. Its 3D gantries accounted for ~20.0% of the company’s total revenues in the fiscal third quarter, as there has been a flattening in new placements of its mammography machines in the US market.
The acquisition of Faxitron Bioptics leverages this evolving trend. This acquisition has added innovative products and solutions to Hologic’s portfolio. These solutions include localizing breast lesions, performing digital specimen radiography, and performing a biopsy of the sentinel lymph node.
Faxitron Bioptic’s distribution efforts focus on pathologists and breast surgeons, which are also targeted by Hologic’s Breast Health team for mammography systems. As a result, this deal could allow Hologic to advance its position in the growing breast-conserving surgery space. This tuck-in acquisition is also expected to provide an attractive return on investment due to synergies between the companies in the breast health space.
Breast Health segment’s performance
In the fiscal third quarter, Hologic reported revenues of ~$307.9 million for its biggest business, Breast Health. This represents a YoY (year-over-year) rise of ~7.4% on a constant currency basis.
The company reported a 4.4% YoY rise in sales for its Breast Health segment in the US market. In international markets, this segment reported 20.5% YoY growth on a constant currency basis for the fourth consecutive quarter. In the fiscal third quarter, the company’s breast imaging business, which is part of the Breast Health segment, reported revenues of ~$254.3 million for a YoY rise of 6.5% on a constant currency basis.
In addition to strategizing for rapid market share gains by its Genius 3D mammography system, Hologic is also focused on advancing its R&D pipeline. The company is working to strengthen the position of its new products such as its Affirm prone biopsy system and 3D Performance Systems in 2018.
In the fiscal third quarter, the company’s interventional breast solutions unit reported revenues of ~$51.0 million, which is a 12.4% YoY increase on a constant currency basis. This business was driven by the solid uptake of new products, mainly the Brevera biopsy system.
In the next article, we’ll discuss the growth trends for Hologic’s Diagnostics business.