Hologic at RBC Healthcare Conference: Strategic Growth Amid Challenges

On Tuesday, 20 May 2025, Hologic Inc (NASDAQ:HOLX) participated in the RBC Capital Markets Global Healthcare Conference 2025. The company highlighted its strategic focus on women’s health care while addressing both opportunities and challenges, such as tariff impacts and geopolitical pressures. Hologic is committed to driving growth through mergers and acquisitions, despite headwinds from China.

Key Takeaways

• Hologic’s Q2 fiscal results were strong, with revenue and EPS at the high end of guidance.
• The company faces a $20-25 million quarterly tariff headwind, primarily from Costa Rican manufacturing.
• M&A remains a priority for capital allocation, focusing on revenue growth and margin expansion.
• China’s market presence is minimized due to geopolitical issues, contributing less than 2% to sales.
• Hologic aims for mid-single-digit revenue growth, leveraging its Panther platform and STD testing dominance.

Financial Results

• Revenue and EPS for Q2 exceeded expectations, maintaining full-year revenue guidance.
• Organic growth slightly decreased due to China-related headwinds, offset by favorable foreign exchange rates.
• EPS guidance was reduced by 10 cents, anticipating tariff impacts in Q3 and Q4.
• Tariff headwinds are expected to impact $5 million in Q3 and approximately $20 million in Q4, with full effects in fiscal year 2026.

Operational Updates

• Hologic has enhanced its molecular business by acquiring new Panther customers and expanding assay offerings.
• The respiratory business, valued at $100 million, continues to grow without being deprioritized.
• Cervical cancer screening guidelines support co-testing, strengthening Hologic’s market position.
• The company’s US manufacturing provides a competitive edge due to less stringent LDT testing regulations.

Future Outlook

• M&A will focus on businesses that can enhance revenue growth and margin accretion.
• Tuck-in acquisitions within existing divisions are prioritized to leverage expertise.
• Hologic maintains a sideline strategy in China, ready to expand if conditions improve.
• The company targets long-term mid-single-digit revenue growth, with strategies for cost optimization and international expansion.

Q&A Highlights

• Hologic plans to grow its BVCV business by leveraging Panther and STD testing successes.
• The surgical division’s large salesforce aids in identifying M&A targets aligned with existing operations.
• Liquid biopsy market entry is not planned, but specialty lab testing expansion is considered.
• Breast health sales team restructuring opens opportunities for product additions along the care continuum.

In conclusion, Hologic remains optimistic about its strategic initiatives and market position. For more detailed insights, please refer to the full transcript below.

Full transcript - RBC Capital Markets Global Healthcare Conference 2025:

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: And welcome to the RBC Capital Markets twenty twenty five Global Healthcare Conference. I’m Connor McNamara, the life science tools and diagnostics analyst with RBC. It’s my pleasure to welcome Hologic, and with me today is Carleen Overton, the CFO of Hologic. Carleen, thanks for joining us.

Carleen Overton, CFO, Hologic: Thanks for having me.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: I’d like to kick it off, and and I’m sorry to make this open ended, but just wanted to give you a chance to you know, because we don’t have this isn’t a presentation format and you don’t have slides. Just quick background on Hologic for those that are new to the story in the room or at at home.

Carleen Overton, CFO, Hologic: Absolutely. So Hologic is a medical technology company uniquely focused in women’s health care. We’re structured with three primary divisions, diagnostics, which kind of leads the way with our molecular diagnostics business based on our Panther high through throughput instrument. And, also, part of the diagnostics business is our cytology businesses and some really unique synergies there across across that platform. We also have our breast health business, which is based on our three d mammography and then our surgical business where we treat abnormal uterine bleeding.

So I think Hologic, part of the story beyond women’s health care is what we did during the pandemic. We almost doubled our installed base of our Panther instruments delivering, you know, hundreds of millions of tests, COVID tests around the world, and we’ve really leveraged that opportunity both with updating our manufacturing capabilities for our molecular business, but also obtaining new customers with the pip Panther placements. And pleased really say that all those new Panthers are running more assays now that COVID is behind us.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Great. Thank you for that, and we’ll we’ll come back to the to

Carleen Overton, CFO, Hologic: Yes.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Dig into each of the business units more. But first, wanted to just get some post your fiscal q two results and guidance updates because there were some moving pieces. So maybe can you just lay out what changed in your guidance in q two for for the fiscal year?

Carleen Overton, CFO, Hologic: Sure. Absolutely. So first of all, for q two, pleased that we delivered on our financial commitments, delivered revenue and EPS at the high end of our guidance range for the quarter. We did maintain our revenue guidance for the full year, but there was basically China headwinds were offset by favorable FX. So while the absolute numbers stayed the same, the growth rate ticked down a little bit on the organic piece.

EPS, we took down our EPS range for 10¢ really related to tariff impacts that we expect in the third and fourth quarter.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Great. And maybe on the tariff, what specifically are the the tariff headwinds for for you guys?

Carleen Overton, CFO, Hologic: Yeah. So we outlined that we expect 20 to $25,000,000 headwind per quarter related to tariffs. That’s primarily related to the manufacturing we do in Costa Rica, where we manufacture all of our surgical and most of our breast interventional products.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. And those are made biologic, and then you pay the tariff as they’re shipped to US?

Carleen Overton, CFO, Hologic: Yes.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay.

Carleen Overton, CFO, Hologic: Yes.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: And then post the quarter, obviously, the the the tariff situation is is dynamic, and it changes on a weekly basis. But any updates on your thoughts and, a, you know, how do you mitigate potentially mitigate that headwind and, b, you know, any changes since since the quarter as far as policy?

Carleen Overton, CFO, Hologic: Yeah. So about two thirds of that 20 to 25,000,000 relate to Costa Rica. That’s that 10% across the board tariff. We really haven’t seen any movement on that. Only about 15% of that 20 to 25,000,000 related to China, so a little bit of favorability there.

But, again, the majority relates to Costa Rica. That is one of our best run plants. We don’t have alternative sites for the products that we make there, so we really can’t move the manufacturing line. But, certainly, we’re looking at product flows, IP positioning, looking working with our suppliers as we as as opportunities present themselves and ultimately some pricing. But those activities are ongoing, and we’ll have an update probably at our next quarter as to what we think we can mitigate.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. And and you walked through this a little bit on the call, but remind us exactly. So it doesn’t the twenty to twenty five is a is a full fully loaded quarterly impact once it flows through cost of goods, but initially, it goes to inventory, so there’s a lag. So you won’t you won’t feel the full twenty to twenty five until realistically probably q one twenty six.

Carleen Overton, CFO, Hologic: Yes. So what we’ve lined out is we expect about a $5,000,000 impact in our third quarter, which is our current quarter, probably about close to 20,000,000 in the fourth quarter. And you’re right, Connor. As we get into q one of our fiscal twenty six, we’ll have that full impact, hopefully, some mitigation

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: And that’s all that’s gross. So any mitigation would be awesome. Okay. Thanks thanks for that. Now just stepping back on kind of the the other piece, what I’ll say is is US policy, and I’d say Hologic has historically been a victim of what I call misunderstood policy proposals where announcements by you organizations like USPSTF and ACOG, there’s been fear from the investment community that those will impact reimbursement on certain either tests that Mhmm.

You sell those tests and and mammography screening. So, you know, just as you look at The US policy changes that have been implemented over the last several months, is there anything that you see as a business headwind and then also that you are getting a lot of questions from investors which may be misunderstood? Misunderstood.

Carleen Overton, CFO, Hologic: Yeah. So, you know, I think if you look over the past year in general, that USPSTF has been probably the biggest question around Hologic. Those draft guidelines came out on cervical cancer screening, which still support co testing, which is, you know, our cytology product and our HPV test. So I think that one’s been cleared up to some degree. You know, if I look at some of the things on policy, don’t think there’s anything that outweighs on Hologic necessarily.

If we look at potential cuts to Medicaid, you know, we estimate that less than 20% of our payer mix is Medicaid, so we seem to be pretty insulated at this point to a lot of the headlines that we’ve seen recently.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. And then, you know, extending on other US policy, including tariffs, I mean, you see any tailwinds to Hologic? You know, for example, on your diagnostics business where you do manufacture in The US and sell primarily in The US, does that give you a competitive advantage over any of any of the other diagnostics players or, you know, other other areas that you see potential long term opportunities for you to take share?

Carleen Overton, CFO, Hologic: You know, I think one of the things I would note is some of the dialing back on the LDT testing. So if you think about our Panther Fusion platform, which is an open channel platform for PCR testing, if labs continue to do LDT testing, they can use our high throughput fusion sidecar, if you will, on that testing. So that would be one of the tailwinds we would see. Yes.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. And that’s because regulation on LDT is not as severe Has initially feared it.

Carleen Overton, CFO, Hologic: Exactly.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: And how are you starting to see that? Was there maybe a pause in in conversion or add addition of the Panther Fusion from your customers? And now that they realize, okay, LDTs are here to stay. We can we can expand and and we’re more likely to do that?

Carleen Overton, CFO, Hologic: Or Yeah. I think we’re on getting out our Panther Fusion because not only just the LDT, but it also opens the full menu. You have to think about our respiratory menu is on the Panther Fusion. So regardless of the LGT environment, we’re out there trying to hopefully have every customer eventually have a Fusion sidecar and have that full availability of our menu.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. And ex you know, extending on the Panther Fusion, and this is an optional add on to the Panther boxes that are out there, and it gives, I I I’ll call it panel or multiplexing capabilities for those customers. And so, you know, one thing that we’ve noticed is is several players in the diagnostic space have talked about STD panels and other panels that they plan on launching. So how important is it for you to have that competitive offering? And if you look at kind of focused on on the STD specifically, do you see that market moving to more of a panels, and will and will you be able to compete with the fusion?

Is that a key?

Carleen Overton, CFO, Hologic: Yeah. So prime majority of our STD is not on the fusion. It’s on the the it’s TMA technology on the Core Panther itself. We have about probably 70% plus market share. And think about, what the what the lab is able to do is run multiple tests from one sample.

So I don’t think it’s necessarily something that that we will be at a disadvantage at.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. Alright. Great. And what about other areas in diagnostics outside of outside of STD? I mean, obviously, during the pandemic, I think you guys did a third of all molecular COVID tests globally.

I may I may be wrong on that number. But coming out of the pandemic, you guys have not talked a lot about the respiratory opportunity where some of the other players that did have that COVID benefit have talked about this endemic state of respiratory sales. So did you just deemphasize respiratory because that’s not something that you was a a core competency and, you know, as you mentioned, you’re the women’s health company. So is it have you deemphasized that? Is it is it just or is that more of an opportunity for you to longer term go get

Carleen Overton, CFO, Hologic: additional respiratory? Don’t think we’ve deemphasized it. Maybe we just haven’t talked about it as much. Our respiratory business right now is probably close to a hundred million dollars of business globally. I think probably why it’s seasonal, so it’s something that we often have to explain in different quarters of impacting the molecular business.

But that is a newer business for us, certainly not de deemphasized. I’m really pleased that it’s over a hundred million dollars now.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. Great. And then this is maybe a loaded question, but Hologic has a history of success in each of their business units, and many, including myself, I think I’ve published it, or you’re a victim of your own success, where if you look at the old Hologic, you took, you know, 85% of the mammography market years ago. And then with Panther, you launched and you took a very significant share, I think, above 80% most of the STD tests. And these are against larger organizations that have the ability to bundle some of those offerings.

And then within the surgical area, the products that you sell, same thing, 80 plus percent. So first off, congratulations on doing that. That’s very successful. But what has been the key to that success? And then are there opportunities?

Do you look at products right now that you have that you could sell that you look and say, okay. We’re at 15% share. We have the opportunity to get to 80%, and we think we can get there.

Carleen Overton, CFO, Hologic: Yes. So let me take that in a couple of pieces. So you’re right. We have tremendous share, and that share that you talked to our references in The US. So still tremendous opportunity outside The US to for our products to gain share and continue to grow.

You know, I think that success we’re not a victim of that success. We’ve actually leveraging that success in each of our divisions. So you think about we talked about the Panther, and we talked about the significant share we have in STDs. And now we leverage that that business to launch the BVCV, right, which is the most, the common reason women goes to the gynecologist, and we’re that’s driving our growth. So we leverage that large install base.

We leverage the success, the customer relations that we have, the workflow that our products deliver, the differentiated technology to continue to grow. So we’ll do that both organically and inorganically. So you see that with surgical, the introduction of our fluid fluid management solution, which is organic. Then we buy Gynasonics. You layer on additional treatments for fibroids.

Again, leveraging that Salesforce, leveraging those customer relationships. I don’t think we’re a victim of our success at all.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. Good good answer. And then maybe we’ll this will take us to some more financial questions. But on capital deployment, you guys have done a good job of blending buybacks along with tuck in m and a. You know, should investors think of any change in your strategy?

Obviously, you have done some smaller deals. You know, what’s the appetite for a larger deal? And and how do you weigh that opportunity? What’s, you know, like, what’s what’s the driving factor behind what you would look for in an m and a deal? Yeah.

Carleen Overton, CFO, Hologic: Well, let let me step back and talk about capital allocation. We are focused on deploying our free cash flow. We have a tremendous balance sheet right now. We have, you know, over a billion and a half of cash on our balance sheet. We have a credit facility that’s best in class term, so what we wanna do is every year deploy our free cash flow.

Primary focus is gonna be m and a because as we know in med tech, it’s growth. Revenue growth is what drives valuation, and it’s an and for share repurchase. I think if you look at this past year through q two, we’ve deployed over 700,000,000 on share repurchase, including an ASR that we did in the first quarter for 250,000,000. So we’re in a tremendous position to do both. Okay.

And from an m and a perspective, you know, I think we’re looking at things like Gynasonics and EndoMag, the two acquisitions that we just did where they kind of play within our current divisional structure. We’re leveraging our expertise in those areas, whether it’s Gynasonics, with treatment of fibroids and EndoMag with local, wireless localization for breast, tumors. So, I think those are the types of things that we’re looking for, and I think you’ll see us do more of that.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. And should we be thinking of, you know, tuck ins within each division, or, you know, what’s the likelihood or desire to add a fourth leg to the stool?

Carleen Overton, CFO, Hologic: You know, I don’t think there’s a fourth leg. I think there is adjacencies that make a lot of sense and, hopefully, adjacencies that have a little higher market growth rate to the point you talked about earlier.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. Yeah. Great. And just maybe going into m and a strategy on each, you mentioned the med tech. And I would say if I look back recently, the the surgical side, you’ve had a ton of success.

And so is there you know, from the sales rep perspective within surgical, do they have the desire and or capacity to add things to their bag? And is that kind of what how you think about it? Is there stuff that you can acquire that would layer in right with that same call point, or how do we think about kind of things that you’re looking at?

Carleen Overton, CFO, Hologic: Yeah. I think it’s it’s things that we can leverage within that call point to that’s our largest Salesforce, probably a competitive advantage for us. But there’s also things how do we that fit within surgical, but maybe we do have to invest a little on the sales side versus some different capabilities, but I think it’s both.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. And then kind of same question within diagnostics. You know, by adding biotherapeutics, you’ve actually added the lab capability. So it’s no longer just, you know, a a product and a consumable, but you we’re actually operating the lab. Does that open the opportunity that you could expand then in some offerings within the lab setting and, you know, potentially some of these like liquid biopsy type testing or?

Carleen Overton, CFO, Hologic: Yeah, I don’t think liquid biopsy, while it’s a space that we watch, I don’t think you’re going to see us step into that foray right now. I do think that biotherapeutics has been a successful acquisition for us in that you could see us do more in the specialty lab, but it’d be probably more on the predictive or prognosis of treatment that you’ll see us do testing, not in the liquid biopsy.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Got it. Okay. And then finally, same on on breast health. You know, obviously, you’ve had a ton of success dominating the gantry market out there from myographies, and then you’ve added in some other, you know, more recurring or consumable type products. Is is there still room for your your sales reps there within Breast Health to to add in some products and and make them, you know, basically expand the the revenue opportunity without expanding much of the Salesforce?

Carleen Overton, CFO, Hologic: Yeah. I think what we’ve done recently with some of the challenges we’ve had in Breast health is that we have restructured the sales team a little bit so that we have sales reps that are uniquely focused on selling what I’ll call the large iron, right, selling the gantry. That’s a different sales cycle than the procedure base, which is our interventional and our breast surgery. So I think with that delineation, that gives us the opportunity if there’s other assets that, again, along that patient continuum of care that we wanna add, we have the sales capability to do it.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. And then overall, if you’re looking at an m and a target and you were to prioritize growth accretion, margin accretion, or EPS accretion, how would you prioritize those three? What

Carleen Overton, CFO, Hologic: Yeah. So so we look at all of them, and we look at returns, of course. I think the priority is gonna be the revenue growth. That’s that’s what we’re gonna focus on. Do we have confidence in that revenue growth?

Do we think that assets can form better as part of Hologic? That that is the primary area that we look at. You know, a lot of these again, I’ll go back to Gynasonics and EndoMag. Both of those products are gross margin accretive. Right?

They’re they’re kind of breakeven, slightly dilutive, but with that gross margin accretion gives us a nice pathway to to have them over time Okay. Contributing on the bottom line in a short period of time, two to three years.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay.

Carleen Overton, CFO, Hologic: And that that’s what we’ll continue to likely look at. Right? Okay. Strong revenue growth, hopefully, some gross margin in line with corporate or better, and then we can drive operating margins over time.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. And you’ve you know, if you talk about not to get you to commit to any long term guidance here, but, you know, several years ago, you talked about a 5% to 7% growth and then, you know, probably mid single digits is is a more real outlook. And if you just look at the the puts and takes, I think the breast health is is probably on the lower end of a mid single digit growth. So was that you know, is the key to getting the mid single digit growth offsetting that, or are there things within breast health that you can do to accelerate that too so all of your businesses have the opportunity to grow mid single

Carleen Overton, CFO, Hologic: Yeah. I think you’re right. I think we always talked about from a mid single digit growth that breast is gonna be whatever that range is. Breast is gonna be on the lower end of that given the largest piece of revenue in that business is service revenue. So that’s the contracted multiyear business that’s recurring in nature.

Right? So that’s your biggest piece of it, and that’s probably gonna grow in the low single digits, you know, every year. And so then it’s really, like, how do we drive opportunities in the interventional service, whether it’s taking share or growing markets.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. And do you ever get at a point I think you’ve disclosed this that when your target growth was five to 7%, you hit that, but there wasn’t a single quarter where your growth was actually within the range of five to seven. So, you know, there’s a lot of puts and takes where you’ve you’ve obviously grown above that and below that. You know? And this year, we’ve seen some, you know, some one offs that have impacted growth.

You know, on the skeletal health, you had a stop ship order, which obviously hurt that. So does Hologic ever get to a point where it is a consistent mid single digit grower, or is it just the nature of the business where there’s gonna be lumpiness here and there and you just kinda have to even it out? Or do we you know, once we get past some of these headwinds and and COVID finally, you know, hits an endemic state, so you actually do see line of sight where you could be a consistent mid single digit grower every quarter?

Carleen Overton, CFO, Hologic: Yeah. Well, absolutely. There is the potential to do that, but, again, we run the business not on a spreadsheet. Right? Yeah.

This is a real world. There’s real things that are going on geopolitically that that impact our business. But I think if you look back over the last ten years, I think the CAGR is close to 5%. Right? So, I mean, this is the nature of the world that we live in that you’re gonna have ups and downs.

But I think over time, I think you’re gonna see us consistently grow at the mid single digit and drive earnings faster than that.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: I like that. We don’t run our business on spreadsheet.

Carleen Overton, CFO, Hologic: Yeah.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: I just thought that’s how everyone did it. Alright. So just some last several questions. But what’s your updated China strategy? You know, prior to a lot of the, you know, call it the demand falling a lot of the China U.

S. Relationships hurt overall demand in China, and you guys decided to walk away from your expansion plans in China. That’s you know, it’s a very small piece of the business, but you called that out as a pressure in q two. So what is your updated China strategy? Is that something longer term you’re still exploring, or do you feel pretty good about the business ex you know, that’s just a market that you don’t need to enter?

Carleen Overton, CFO, Hologic: Yeah. I think we’re I would call it on the sideline. Right? I I think we still have a commercial presence there. I think we’re under pressure right now as, you know, an American manufacturer.

You know, the nature of our products in that market are primarily our diagnostics, both cytology and molecular, there’s a lot of local competition. So I think I think, well, I’d call it on the sideline. We’ll see how the geopolitical environment evolves, and if we need to ramp up, we we have some core capabilities that we can turn it back on.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: And remind me that that’s less than 5% of overall sales or entire Yeah.

Carleen Overton, CFO, Hologic: Prior prior to the tariff situation, China was less than 2%. Okay. So

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. And on the margins, you know, you talked about inorganic opportunities to expand margins. I know you’ve got some potential tariff headwinds, but, you know, expansion into Europe has historically not been margin accretive. So just how how do we think about the organic margin progression capability at Hologic from current levels?

Carleen Overton, CFO, Hologic: Yeah. I think what when Steve presented at JPMorgan a few months ago, he talked about the long term mid single digit revenue growth with some margin expansion to drive EPS faster than that. As I think about it, we have invested significantly in our commercial capabilities internationally. So even though there’s a a margin dilutive, we do get accretion over time as we continue to grow that revenue. We drive more leverage in that business.

So, you know, I feel good about that commitment to drive earnings faster than revenue.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Okay. And then what about cost cut opportunities? A lot of companies within life science tools and diagnostic space have, you know, done these cost out programs. Obviously, you haven’t been hit with some of the same end market pressures that that other life science tools names have. But if you look at your overall cost structure, are there areas that, you know, maybe you can consolidate facilities or or there’s areas that you overinvested in during the pandemic that that you can ratchet back?

Carleen Overton, CFO, Hologic: Yeah. I mean, we’re always looking at our manufacturing footprint to optimize it. And, certainly, I think what you’ll see is as we do acquisitions, those are opportunities to drive integration, drive synergies, and drive leverage. And then as I mentioned internationally, we have have invested, and now we’re gonna see the leverage coming out of that that business as we move forward.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Great. And just one more is on the on those costs, you know, during the pandemic, you built out, obviously, a ton of capacity for Panther and for the pan COVID testing. Is there excess capacity in that business now, or were you able to consume that with non COVID tests? And and, you know, what type of opportunity is that is there if there is overcapacity?

Carleen Overton, CFO, Hologic: So we the Department of Defense funded over a hundred million dollars automation improvements in our molecular diagnostics manufacturing, which is primarily in our San Diego facility. Because it was funded by the Department of Defense, there’s no headwinds to that capacity. And as we continue to grow that molecular business, it’s all in that one facility. We continue to drive leverage. So, yeah, it was a great partnership with the government and really pleased with the facility and what we have the capability to do now.

Great.

Connor McNamara, Life Science Tools and Diagnostics Analyst, RBC Capital Markets: Well, thank you for that. And, Colleen, thank you for joining us. Thank you everyone for listening in. We appreciate it, and that’ll wrap.

Carleen Overton, CFO, Hologic: Thank you. Thanks.

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