), a prominent player in the women's healthcare market, has
expanded its diagnostics portfolio. The company received approval
from the US Food and Drug Administration ('FDA') for its Aptima
HPV 16, 18/45 genotype assay to be used on the Tigris instrument
system. Commercialization of the assay is scheduled during the
first quarter of fiscal 2013.
The FDA approval is immensely beneficial to patients as the
16, 18 and/or 45 strains of the virus are associated with
approximately 80% of all invasive cervical cancers worldwide. The
Aptima HPV assays were inducted in Hologic's portfolio with the
acquisition of Gen-Probe that was completed in August 2012. The
Gen-Probe deal should add value to the company over the long
term. Additionally, the deal has provided Hologic with the access
to the molecular diagnostic platforms of Tigris and Panther
systems. With 61% of revenues from molecular diagnostics and 35%
from blood testing, Gen-Probe is a prominent player among
molecular diagnostics products and services that are used
primarily to diagnose human diseases; screen donated human blood,
and helps ensure transplant compatibility.
During the last reported quarter, Hologic derived
approximately 34% of its revenues from the Diagnostics business.
However, it is expected to go up substantially following the
acquisition of Gen-Probe. During the quarter, the Diagnostics
segment recorded 10% growth with three-fourths coming from core
diagnostics businesses, primarily ThinPrep pap test and the
balance from molecular diagnostics products. Thinprep sales
recorded 30% growth in the international market on the back of
better penetration in Europe and focus on emerging markets.
The Molecular business recorded 30% growth in the quarter,
almost all of which came from the sales of Cervista HPV in both
US and China. Growth was driven by new customer accounts, growth
at existing accounts and international penetration. With full
commercial launch of Cervista HPV in China in the second quarter,
the company is encouraged with the initial response. The
Gen-Probe acquisition is deemed to further strengthen this
franchise. We are also encouraged to note that the launch
of the Cervista HTA system has been well received in the US
market, with 30 units in the domestic market already installed,
which reflects positive customer feedback.
While the company is working on expanding its Diagnostics
portfolio, this market is highly competitive with the presence of
players such as
Becton, Dickinson and Company
), among others.
Hologic carries a Zacks #3 Rank (Hold) in the short term.
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