In line with its strategy of portfolio expansion,
) launched its redesigned DXA (dual energy X-ray absorptiometry)
imaging system - Horizon. This novel system will be used for the
determination of the triad of critical health problems - obesity,
cardiovascular disease and osteoporosis. The Horizon
platform is simultaneously being commercialized in the domestic
market and other countries.
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The Horizon platform is embedded with Hologic's proprietary
technologies. It is expected to improve workflow efficacy on the
back of superior design components and expanded technical
Hologic spearheaded into the DXA market with the launch of the
foremost QDR bone densitometer. Following this, management
asserts that it maintained its authoritative stance in the DXA
market on the heels of persistent investment in research and
development. According to the company, the commercialization of
the Horizon platform further strengthens its foothold in the
Considering the exponential rise in incidence of cardiovascular
disease, osteoporosis and obesity-related problems across the
globe, there is a vast market opportunity for Hologic's Horizon
platform. According to estimates from
Handout on Health: Osteoporosis
, one in two females over the age of 50 are prone to
osteoporosis-related fracture during their lifetime. The same
applies to one in four men over 50 years of age.
As per findings from World Health Organization (WHO), roughly 17
million deaths worldwide are caused by cardiovascular disease
annually. Moreover, WHO estimates that approximately 2.8 million
individuals annually die of obesity-related complications.
Besides, according to medical journal
, there has been 82% rise in the incidence of obesity over the
last 20 years. Thus, these problems present an attractive
opportunity for Hologic to garner incremental revenues.
The market launch of the Horizon platform is an upside for the
company as it will expand Hologic's Skeletal Health business. In
the last quarter, higher sales of densitometry systems led growth
for the franchise. We believe that commercialization of lucrative
products will boost segment revenues.
On the tepid side, Hologic is still plagued by looming challenges
such as lower sale of legacy products, economic uncertainties in
Europe, slower sales cycles and increasing pricing pressure. The
company's downward revision of guidance for the ongoing fiscal
reflects that any near-term improvement in the situation is
The estimate revision trend for the ongoing and next fiscal year
also underlines bearish sentiments towards Hologic. Currently,
the stock carries a Zacks Rank #5 (Strong Sell).
While we prefer to avoid Hologic, other stocks such as
) warrant a look. While Luminex carries a Zacks Rank #2 (Buy),
the other two are Zacks Rank #1 (Strong Buy) stocks.