), a prominent player in the field of women's health, provided an
update on the pending acquisition of
), which is expected to close in August. The company announced that
Carl Hull, Chairman and CEO of Gen-Probe, will continue as the
Senior Vice President and General Manager of the combined company's
Diagnostics business for a minimum time frame of 15 months.
Also, the integration process is currently making progress as
per the companies. Hologic has also issued $750 million of senior
notes due 2020, which will be used to finance the Gen-Probe
acquisition. The company currently has $3.05 billion of credit
facility in place, including $2.75 billion term loan facility and a
$300 million revolving credit facility.
It is expected that the proposed acquisition of Gen-Probe will
prove to be valuable for Hologic over the long-term. With 61% of
revenues from molecular diagnostics and 35% from blood testing,
Gen-Probe is a prominent player in molecular diagnostics products
and services that are used primarily to diagnose human diseases,
screen donated human blood, and helps ensure transplant
Hologic will also have access to Gen-Probe's molecular
diagnostic platforms of Tigris and Panther. Gen-Probe has a wide
portfolio of tests, including the Aptima franchise used to detect
common sexually transmitted diseases, certain high-risk strains of
the HPV, and trichomonas products.
We believe the combined company will be well placed to augment
in the molecular diagnostics space with special focus on the
women's health segment based on an attractive portfolio, wide
marketing and distribution network, and continued investment in
Preliminary Third Quarter Fiscal 2012 Results
Along with the update on the Gen-Probe deal, the company also
announced its preliminary results for the third quarter of fiscal
Hologic will report revenues of approximately $470 million in
the third quarter, up 4.2% year over year but lower than the
current Zacks Consensus Estimate of $477 million. Adjusted net
income should be in the range of $90−$93 million ($85.7 million in
the prior-year quarter) resulting in adjusted EPS of 34−35 cents
(32 cents in the year-ago quarter), almost in line with the Zacks
Hologic also reaffirmed the low-end of its 2012 revenue guidance
of $1.9 billion and adjusted EPS range of $1.36−$1.38.
The company recorded robust growth in shift of orders from 2D
digital mammography systems to its new Dimensions 3D breast
tomosynthesis systems. In addition, Hologic has reached over 45% of
its goal of placing 500−700 3D systems in US within two years of
launch and is on track to achieve the 60% level by the end of the
We have a Neutral recommendation on Hologic. The stock retains a
Zacks #3 Rank (Hold) in the short-term.
GEN-PROBE INC (GPRO): Free Stock Analysis
HOLOGIC INC (HOLX): Free Stock Analysis Report
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