How Hologic made a major pandemic pivot

Hologic Chief Financial Officer Karleen Oberton [Photo courtesy of Hologic]

Hologic CFO Karleen Oberton reflects on key decisions and turning points of the COVID-19 pandemic.

Hologic’s fiscal year closes in September, but Chief Financial Officer Karleen Oberton had seen enough by late July to call it: 2021 would be the best financial year ever.

Oberton and the women’s-health-focused company have come a long way since sketching out doomsday scenarios in March 2020.

“We quickly went from counting every penny to these exponential sales on the COVID testing,” Oberton said in an interview with Medical Design & Outsourcing.

She shared the company’s path through the pandemic, ramping up its diagnostics business to support and grow its surgical and breast health lines for the post-pandemic future.

“While already a strong leader, Karleen became an even str…

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Hologic EPS trails the consensus forecast

Hologic (NSDQ:HOLX) posted second-quarter results today that trailed the consensus forecast, but the company forecasts a strong third quarter fueled by strong COVID-19 test revenue.

The Marlborough, Mass.-based company posted profits of $1.09 billion, or $2.38 per share, on sales of $1.54 billion for the three months ended March 27, 2020. Sales growth in the quarter was 103.4% year-over-year for a 40.3% bottom-line gain.

Adjusted to exclude one-time items, earnings per share were $2.59, three cents beneath the consensus forecast of $2.62 per share on sales of $9.9 million.

“Hologic posted very strong financial results in our second fiscal quarter in line with our guidance,” said Steve MacMillan, the company’s CEO. “Organic revenue doubled, driven by strong recovery and momentum in our base businesses, as well as our continued response to the COVID-19 pandemic. And earnings per share more than quadrupled.”

The company is upb…

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Hologic completes Biotheranostics acquisition

Hologic (NSDQ:HOLX) announced that it completed its previously announced acquisition of Biotheranostics for $230 million.

Marlborough, Mass.-based Hologic last month announced that it was set to buy Biotheranostics and its two molecular diagnostic tests for breast and metastatic cancers, the Breast Cancer Index and CancerTYPE ID. Both laboratory-developed tests are not required to be cleared by the FDA.

Biotheranostics’ tests are PCR-based gene expression tests that have been validated in large studies in areas of oncology with unmet needs and high growth potential, Hologic said.

“We are very pleased to complete the acquisition of Biotheranostics and look forward to working with our new colleagues to grow in the large, rapidly expanding oncology space,” Hologic president of diagnostic solutions Kevin Thornal said in a news release. “We are even more excited about the acquisition because last month the National Comprehensive Cancer Network (NCCN) re…

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Hologic to acquire Biotheranostics for $230M

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,…

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