Hologic
(
HOLX
), a prominent player in the field of women's health, recently got
the Netherlands Society for Pathology's ("NVVP") approval for its
Human Papillomavirus ("HPV) high-risk test Cervista HPV HR for the
use in the national cervical screening programme of Netherlands.
The latest approval for HPV HR will help Hologic to tap the growing
molecular diagnostic market in the Netherlands and will boost its
international endeavors.
The Cervista HPV HR test helps detect HPV, one of the widely held
sexually transmitted diseases ("STD") causing cervical cancer. This
test uses sample collected through Hologic's ThinPrep Pap test and
works on its Cervista MTA (Medium Throughput Automation) system for
the extraction of DNA and HPV detection. Following the approval,
The National Institute for Public Health and the Environment in The
Netherlands ("RIVM") suggested routine Pap testing and HPV HR
triage for ASCUS/LSIL testing for women aged 30 and above.
With a wide range of products, Hologic has become an industry giant
in the field of women's health. The company is undertaking several
steps, including acquisitions, international expansion and product
development to bolster its top line. Moreover, the pending
acquisition of Gen-Probe (GPRO) will position Hologic favorably in
the molecular diagnostics segment with special focus on the women's
health.
It is expected that the acquisition will prove to be valuable for
Hologic over the long term. With 61% of revenues from molecular
diagnostics, Gen-Probe is a major player in molecular diagnostics
products and services that are deployed primarily to diagnose human
diseases, screen donated human blood, and helps ensure transplant
compatibility. Hologic will also have access to Gen-Probe's
molecular diagnostic platforms of Tigris and Panther.
However, we are disappointed with Hologic's preliminary third
quarter 2012 result. The company will report revenues of
approximately $470 million in the quarter, up 4.2% year over year
but lower than the current Zacks Consensus Estimate of $477
million. We also remain concerned about the high leverage of
the company owing to the Gen-Probe deal. Hologic is also suffering
from weak procedure volumes due to macro-economic issues and
persistent unemployment. The company faces stiff competition from
players such as
Qiagen
(
QGEN
) and
Abbott Laboratories
(
ABT
).
Currently with 80% market share in HPV space with its largest
selling consumable product digene HC2 HPV Test, Qiagen is a
dominant player in this market. The company also expects to
strengthen its position further in this field with the recent
acquisition of AmniSure International.
Qiagen currently retains a Zacks #3 Rank (short-term Hold), in line
with Abbott. However, Hologic holds a Zacks #4 Rank (short-term
Sell rating).
ABBOTT LABS (ABT): Free Stock Analysis Report
HOLOGIC INC (HOLX): Free Stock Analysis Report
QIAGEN NV (QGEN): Free Stock Analysis Report
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