The recent acquisition of Gen-Probe deepened Hologic's roots in its two strongest segments: breast health and diagnostics. With its focus on these high-growth industries, the firm's many competitive advantages warrant a narrow economic moat, in our Read more
Hologic operates highly complementary business segments with an unparalleled focus on women's health. This narrow approach enables the company to capitalize on tailored R&D and information cross-sharing across divisions, rather than adding complexity with ancillary end markets and product lines.
Hologic's groundbreaking 3D breast imaging platform represents the future in this market and speaks to the company's strength in innovation. With no significant rival in the U.S. and a growing base of users, Hologic is well positioned to maintain and expand its leading market share in this arena over the years ahead.
Hologic is now the largest diagnostic company focused on women's health. With Gen-Probe under its wing, Hologic aims to be the global leader in one of the largest and fastest growing niches in life sciences today, providing significant opportunities for expansion, in our opinion.
The company is intensifying sales efforts in high-growth emerging markets, particularly in Asia and Latin America. Hologic's direct presence in these countries as well as growing demand for its technology should provide ample international growth opportunities. Read more
Hologic maintains a healthy pace of acquisitions in order to build out the product portfolio and expand into new markets. In some cases, it may not be able to achieve all of its postmerger sales and cost synergy goals, which could result in lower operating margins and earnings growth. Gen-Probe comes with a hefty price tag and will need to provide significant returns in order to be accretive for shareholders.
Although tomosynthesis sales should provide a buffer in the near term, Hologic offers a number of other high-ticket instruments that could come under pressure during periods of economic weakness or tight credit environments.
Hologic must innovate and protect its intellectual property portfolio in order to stay ahead of the blistering pace of technological advancement. The company faces competition from larger, multinational corporations with greater resources as well as from more specialized players.
Despite the firm's full pipeline and best efforts, a high degree of clinical and regulatory risk surrounds Hologic's products. The regulatory path to approval can often be expensive, time-consuming, and fruitless. Read more
We assign the company standard marks for stewardship. Overall, we think Hologic has a strong record of generating shareholder value as it has risen to the top ranks of the molecular diagnostic field. Robert Cascella joined Hologic as chief operating Read more
Hologic offers proprietary products for the health-care needs of women. The company operates in four segments: diagnostics (49% of sales), breast health (34%), surgical Read more
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