Hologic (NSDQ:HOLX) announced that it agreed to acquire molecular diagnostic test maker Biotheranostics for approximately $230 million.
Privately held, commercial-stage Biotheranostics provides molecular diagnostics for breast and metastatic cancers. Both of its tests are PCR-based gene expression tests which have been validated in large studies in areas of oncology with unmet needs and high growth potential, according to a news release.
Biotheranostics generated approximately $33 million in revenue during the 2020 calendar year. Marlborough, Mass.-based Hologic expects the acquisition to be slightly dilutive to its non-GAAP earnings per share for fiscal 2021, break-even in 2022 and accretive thereafter.
The companies expect the acquisition to close in February of this year, subject to antitrust clearance along with other customary closing conditions.
“We are thrilled that the Biotheranostics team will become part of Hologic’s diagnostic business,” Biotheranostics president & CEO Don Hardison said in the release. “Hologic’s leadership in women’s health and molecular automation will accelerate access for both of our novel, proprietary tests, translating into better clinical outcomes for cancer patients. For Breast Cancer Index (BCI), our long-held belief is that all women who are being treated with endocrine therapy for their breast cancer deserve to know what is right for them.
“Being part of Hologic only helps bring that hope closer to reality. In addition, patients facing the challenges of metastatic cancer will have broader access to our CancerTYPE ID offering that can aid in the diagnosis of the tumor type and subtypes representing 95% of all solid tumors.”
The acquisition of Biotheranostics is the second purchase Hologic has made in recent weeks after it announced the buy of Somatex Medical Technologies GmbH and its minimally invasive devices for tumor diagnostics, biopsy and interventional specialties in breast health for $64 million.
“Acquiring Biotheranostics enables us to jump-start our entry into a large, fast-growing oncology adjacency that fits perfectly with our broader corporate focus and passion for women’s health,” Hologic diagnostics division president Kevin Thornal said. “Together with the Biotheranostics team, we can leverage our commercial capabilities and expertise in molecular diagnostics automation to accelerate growth, help physicians make more informed decisions, and deliver more personalized treatment and better clinical outcomes for more women.
“In addition, Biotheranostics’ CLIA (Clinical Laboratory Improvement Amendments) lab provides us new capabilities to help accelerate market development for innovative new tests.”