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Diagnostics Business Emerges as a Key Growth Driver in Fiscal Q3

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Aug. 6 2018, Updated 10:31 a.m. ET

Diagnostics business trends

In the fiscal third quarter, Hologic (HOLX) reported revenues of ~$294.3 million for its Diagnostics segment. This represents a YoY (year-over-year) increase of 2.3% on a constant currency basis. 

This performance was driven by the company’s molecular diagnostic business, which reported revenues close to $154.5 million. This was a YoY rise of ~6.3% on a constant currency basis.

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Molecular diagnostics’ business trends

The molecular diagnostics business, which is part of Hologic’s Diagnostics segment, reported double-digit growth in international markets in the fiscal third quarter. The molecular business also recovered from a difficult fiscal second quarter. 

This unit reported a mid-single-digit growth rate in the US market, despite already accounting for a significant market share in major assay categories. In the fiscal second quarter, the company’s molecular business’ sales in the United States were affected by a severe flu season.

Hologic’s Aptima assays, which are run on Panther systems, are key growth drivers for the company’s molecular diagnostics business. The sales of virology assays for HPV, HCV, and HIV tests rose YoY by almost 100.0% in the fiscal third quarter.

On July 25, Hologic announced that it partnered with the Clinton Health Access Initiative and MedAccess, an organization supported by the UK government, and launched the Hologic Global Access Initiative. This initiative is expected to help expand access to molecular diagnostic tests for HIV, HBV, and HCV to people in about 50 nations.

Cytology and perinatal growth trends

In the fiscal third quarter, Hologic’s cytology and perinatal segment reported revenues of ~$121.1 million, which is a YoY decline of 1.8% on a constant currency basis. Hologic’s cytology sales remained depressed in the US market due to the company’s already high market share and a lower frequency of cervical cancer testing by patients. 

However, the business reported solid sales numbers in international markets. The company witnessed a significant drop in sales of its fetal fibronectin tests in the fiscal third quarter.

In the next article, we’ll discuss the growth trends for Hologic’s GYN Surgical segment.

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