Hologic Completes Acquisition of Endomagnetics Ltd

Rhea-AI Summary

Hologic (Nasdaq: HOLX) has completed its acquisition of Endomagnetics (Endomag), a UK-based developer of breast cancer surgery technologies, for approximately $310 million. This acquisition adds Endomag's wireless breast surgery localization and lymphatic tracing solutions to Hologic's breast surgery portfolio, including the Magseed® marker, Magtrace® lymphatic tracer, and Sentimag® platform.

The integration aims to provide breast surgeons and radiologists with an expanded range of options and enhanced user experience. Hologic's President of Breast and Skeletal Health Solutions, Erik Anderson, expressed enthusiasm about increasing access to Endomag's innovative technologies and improving outcomes for patients. Endomag's CEO, Eric Mayes, shared optimism about the opportunities for their team and the potential to impact more women globally.

Positive

• Acquisition expands Hologic's breast surgery portfolio with innovative technologies
• Potential for increased market reach and improved patient outcomes
• Complementary technologies may enhance Hologic's competitive position in women's health

Negative

• Significant cash outlay of $310 million for the acquisition

Financial Analyst

Hologic's $310 million acquisition of Endomagnetics marks a significant expansion in the breast cancer surgery technology market. This move aligns with Hologic's strategy to strengthen its position in women's health, particularly in interventional breast health solutions.

The acquisition is expected to be immediately accretive to Hologic's revenue growth rate and non-GAAP earnings per share. While specific financial projections weren't provided, the integration of Endomag's innovative products like Magseed® marker and Magtrace® lymphatic tracer into Hologic's portfolio could drive substantial revenue growth in the breast health segment.

Investors should note that this acquisition:

• Diversifies Hologic's product offerings in a high-growth market
• Enhances the company's competitive position against rivals like Devicor Medical Products and Merit Medical Systems
• Potentially expands Hologic's international presence, given Endomag's UK base

However, the $310 million price tag is significant and investors should monitor integration costs and the speed at which synergies are realized. The success of this acquisition will largely depend on Hologic's ability to leverage its existing sales channels to accelerate the adoption of Endomag's technologies globally.

Medical Research Analyst

The acquisition of Endomagnetics by Hologic represents a significant advancement in breast cancer surgery technologies. Endomag's wireless localization and lymphatic tracing solutions offer several clinical advantages:

1. Improved Precision: The Magseed® marker allows for more accurate tumor localization, potentially reducing the amount of healthy tissue removed during surgery.

2. Enhanced Lymph Node Mapping: The Magtrace® lymphatic tracer provides a radiation-free alternative for sentinel lymph node biopsy, which could improve patient comfort and reduce exposure risks.

MARLBOROUGH, Mass.--(BUSINESS WIRE)-- Hologic, Inc. (Nasdaq: HOLX), a global leader in women’s health, has completed its previously announced acquisition of Endomagnetics Ltd (Endomag), a privately held UK-based developer of breast cancer surgery technologies, for approximately $310 million.

Endomagnetics breast cancer surgery technologies (Photo: Business Wire)

“We are thrilled to complete the acquisition of Endomag and are looking forward to working with our new colleagues to increase access to their innovative technologies, which complement and diversify our expanding interventional breast health portfolio,” said Erik Anderson, President of Breast and Skeletal Health Solutions at Hologic. “With our shared commitment to advancing women’s health globally, we are excited to improve outcomes for patients and, together with our customers, redefine the standard of care for breast cancer intervention.”

The transaction adds Endomag’s wireless breast surgery localization and lymphatic tracing solutions – including the Magseed® marker, the Magtrace® lymphatic tracer and the Sentimag® platform – to Hologic’s breast surgery portfolio, providing breast surgeons and radiologists with an expanded range of options and enhanced user experience.

“We are so proud of the company we built and the practice-changing breast surgery technologies that we developed following years of relentless research, innovation and deep engagement with clinicians,” said Eric Mayes, PhD, Chief Executive Officer of Endomag. “As we embark on this new journey with Hologic, I am filled with optimism about the opportunities for our team, our forthcoming innovations and our ability to impact even more women around the world.”

About Hologic

Hologic, Inc. is a global leader in women’s health dedicated to developing innovative medical technologies that effectively detect, diagnosis and treat health conditions and raise the standard of care around the world. To learn more, visit www.hologic.com and connect with us on LinkedIn, Facebook, X (Twitter), Instagram and YouTube.

Forward-Looking Statements

This news release may contain forward-looking information that involves risks and uncertainties, including statements about Hologic’s plans, objectives, expectations and intentions. Such statements include, without limitation: financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; strategies, positioning, resources, capabilities, and expectations for future performance; and financial outlook and other guidance. These forward-looking statements are based upon assumptions made as of this date and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated.

Risks and uncertainties that could adversely affect Hologic’s business and prospects, and otherwise cause actual results to differ materially from those anticipated, include without limitation: the possibility that the anticipated benefits from the transaction or products cannot be fully realized or may take longer to realize than expected; the possibility that costs or difficulties related to the integration of Endomag operations with those of Hologic will be greater than expected; the coverage and reimbursement decisions of third-party payers and the guidelines, recommendations, and studies published by various organizations relating to the use of products and treatments; the ability to successfully manage ongoing organizational and strategic changes, including Hologic’s ability to attract, motivate and retain key employees; the development of new competitive technologies and products; regulatory approvals and clearances for products; the anticipated development of markets in which products are sold into and the success of products in these markets; the anticipated performance and benefits of products; estimated asset and liability values; anticipated trends relating to Hologic’s financial condition or results of operations; and Hologic’s capital resources and the adequacy thereof.

The risks included above are not exhaustive. Other factors that could adversely affect Hologic’s business and prospects are described in Hologic’s filings with the SEC. Hologic expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements presented herein to reflect any change in expectations or any change in events, conditions or circumstances on which any such statements are based.

Hologic, The Science of Sure, Magseed, Magtrace and Sentimag are trademarks and/or registered trademarks of Hologic, Inc. and/or its subsidiaries in the United States and/or other countries.

Source: Hologic, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725351417/en/

Media Contact

Bridget Perry

Director, Corporate Communications

(+1) 508.263.8654

bridget.perry@hologic.com

Investor Contact

Ryan Simon

Vice President, Investor Relations

(+1) 858.410.8514

ryan.simon@hologic.com

Source: Hologic, Inc.

FAQ

What is the value of Hologic's acquisition of Endomagnetics ?

Hologic (HOLX) acquired Endomagnetics for approximately $310 million.

What technologies does Endomagnetics bring to Hologic's portfolio?

Endomagnetics brings wireless breast surgery localization and lymphatic tracing solutions, including the Magseed® marker, Magtrace® lymphatic tracer, and Sentimag® platform.

How does the Endomagnetics acquisition align with Hologic's business strategy?

The acquisition complements and diversifies Hologic's expanding interventional breast health portfolio, aiming to improve outcomes for patients and redefine the standard of care for breast cancer intervention.

What is the expected impact of the Endomagnetics acquisition on Hologic's market position?

The acquisition is expected to strengthen Hologic's position in women's health by expanding its range of options for breast surgeons and radiologists, potentially leading to increased market share and improved patient care.