Hologic Inc.HOLX

Morningstar Rating

Stock Research and Analysis

by Jeffrey Stafford

Upon completion of its merger with Cytyc, Hologic emerged as the world's largest pure-play women's health-care company with several market-leading products. Hologic has posted impressive sales growth during the last several years, but we believe eventual Read more

Bulls Say

Hologic is investing heavily in 3-D breast imaging devices, which the company believes is the next frontier for digital mammography.

Hologic's NovaSure system treats women suffering from excessive menstrual bleeding without drug or surgical pretreatment, saving patients time and money.

Hologic has an established salesforce with connections to OB/GYN physicians, which the company can use to cross-sell its women's health products.

The FDA recently approved two of Hologic's HPV tests, allowing the company to compete with Qiagen's QGEN offering in the U.S.

The ThinPrep system can also be used to test for human papillomavirus, chlamydia, and gonorrhea, which further differentiates it from competition. Read more

Bears Say

Price competition with Becton, Dickinson and Company BDX could lead to lower revenue for the company's ThinPrep product.

Reimbursement pressure has caused slow growth in Hologic's skeletal-health segment. The company does not expect much from this division in the near term.

Excluding Japan, opportunities to expand digital mammography sales in Asia are limited, as demand for high-end breast imaging devices is currently low.

Lower-cost alternatives to digital mammography from Fujifilm FUJI and others threaten to make the mammography imaging market more competitive. Read more

Strategy

Hologic is focused on the successful integration of Cytyc's operations with its own. Additionally, the company plans to continue investing heavily in research and development, increasing the firm's chances Read more

Management

We assign Hologic a B Stewardship Grade. Upon completion of the merger with Cytyc, John Cumming, Hologic's chief executive since 2001, remained CEO of the combined company, and Cytyc's former CEO, Patrick Sullivan, became its chairman. This move separated Read more

Profile

Hologic is a diversified medical technologies company serving the women's health-care market. The company specializes in the screening, diagnosis, and therapy of many major Read more

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