Hologic finalizes Gynesonics acquisition for $350 million

MARLBOROUGH, Mass. - Hologic, Inc. (NASDAQ:HOLX), a company specializing in women's health, announced today the completion of its acquisition of Gynesonics, Inc., a medical device company that has been developing minimally invasive solutions for women’s health. The acquisition, valued at approximately $350 million, aims to broaden Hologic's portfolio of women's health solutions.

The centerpiece of the acquisition is the Sonata System, a technology designed for the transcervical treatment of symptomatic uterine fibroids, including those that cause heavy menstrual bleeding. The system offers a non-invasive option for diagnostic intrauterine imaging and treatment by combining real-time ultrasound guidance with radiofrequency ablation. With a robust gross profit margin of 60.7% and net income of $789.5 million in the last twelve months, Hologic demonstrates strong operational efficiency in its existing product lines.

Brandon Schnittker, President of Surgical Solutions at Hologic, expressed the company's commitment to providing diverse treatment options and improving women’s health outcomes. "Increasing access to the Sonata System aligns with our mission to empower surgeons with cutting-edge treatment options," said Schnittker.

The acquisition is expected to enhance Hologic's offerings in the women’s health market, complementing its existing product lines. Skip Baldino, President and CEO of Gynesonics, commented on the merger, "Joining forces with Hologic marks a new phase for the Sonata System, which has already positively impacted many women's lives."

Hologic has a history of developing medical technologies for detecting, diagnosing, and treating health conditions, raising the standard of care for women worldwide. The acquisition of Gynesonics is part of Hologic’s strategy to expand its footprint in the women's health industry.

While the news release includes forward-looking statements regarding the benefits and expectations from the transaction, Hologic acknowledges that actual results could differ materially due to various risks and uncertainties. These include the potential challenges in integrating Gynesonics’ operations and products, as well as the need to obtain regulatory approvals and clearances.

The company has advised that the information provided is based on a press release statement and that actual future performance may vary due to known and unknown risks. Hologic has not provided specific guidance on the expected financial impact of the acquisition.

In other recent news, Hologic, a leading medical technology company, has seen adjustments to its financial performance estimates by Needham following new company guidance. The firm's analysis anticipates similar revenue and earnings per share for the first and second quarters of fiscal year 2025, with a positive adjustment expected for the latter half of the year due to improvements in the Skeletal Health division, alleviation of intravenous solutions shortages, and a milder flu season.

In addition, recent updates to cervical cancer screening guidelines by the US Preventive Services Task Force (USPSTF) have been met with support from Hologic. The revised guidelines continue to endorse a variety of screening methods, including those offered by the company, a development that Stephens has viewed favorably, maintaining an Overweight rating for Hologic.

Jefferies has initiated coverage on Hologic with a Hold rating, noting the company's robust financial position but expressing concerns about its near-term prospects. The firm has highlighted the complexity of the fiscal year 2025 guidance and ongoing issues like the USPSTF recommendations as potential challenges.

Moreover, Hologic has expanded its Board of Directors with the appointment of industry veteran Dr. Martin Madaus. The company also announced a $250 million accelerated share repurchase program, demonstrating its commitment to shareholder value. These developments come amidst Hologic's ongoing efforts to advance women's health through early detection and treatment technologies.

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