), a leading player in the women's healthcare market, plans to
showcase some of its latest products at the 97th Scientific
Assembly and Annual Meeting of the Radiological Society of North
America, starting November 26 to December 2, 2011 in Chicago.
The products to be featured include three-dimensional (3D)
Mammography (breast tomosynthesis) for breast cancer screening and
diagnosis; Breast Biopsy Devices, which are designed to offer
radiologists swift and efficient system for reduced procedure
times; Specimen Radiography and Magnetic Resonance Imaging (MRI)
products. The product display will allow researchers globally to
have a direct experience of Hologic's instruments.
With a diverse product suite, Hologic has emerged as the leading
player in the women's health products market. In February 2011, the
company received approval from the US Food and Drug Administration
(FDA) for its Selenia Dimensions 3D digital mammography
tomosynthesis system. Selenia has been developed on the Dimensions
platform utilizing tomosynthesis technology to produce both 3D and
the conventional two dimensional (2D) full field digital
mammography (FFDM) images.
The company's Dimensions 3D system is a major technological
breakthrough and should help generate higher revenues. Hologic is
satisfied with the increase in sales of 3D Dimensions and believes
that all 2D Dimensions sold will be upgraded to the 3D platform
The company noted that sales of the 3D Dimensions is in its
initial stages of launch in the US and despite growth on a
sequential basis, significant contribution is not expected before
mid-fiscal 2012. Nevertheless, they are confident of being able to
achieve the target of placing 500-700 3D systems in the US within
the first two years. Going forward, the Dimensions portfolio is
expected to be an important growth driver for the Breast Health
However, the economic uncertainty is taking a toll on Hologic as
high unemployment is forcing many people to defer physician visits.
The company derived about 24% of its revenues from capital
As a result, the company is exposed to lower hospital spending
exacerbated by economic challenges. Moreover, the company faces
tough competition from the likes of
Laboratory Corporation of America Holdings
), among others.
We currently have a 'Neutral' recommendation on Hologic over the
long term (in line with its peers), which also corresponds to a
Zacks #3 Rank (hold) over the short term.