by John R. Fischer
, Senior Reporter | October 01, 2018
Hologic Inc. is furthering its expansion into the market of breast conservation surgery with the acquisition of Focal Therapeutics.
The women’s health manufacturer, agreed this week to purchase the privately held company, putting down $125 million in cash to secure the agreement, which adds Focal’s BioZorb marker product to the Hologic Breast Health product portfolio. The acquisition of Focal comes less than two months after the acquisition of Faxitron Optics
for approximately $85 million.
“Focal Therapeutics has commercialized an innovative marker that improves the standard of care for breast cancer patients by creating a permanent, three-dimensional indicator of the surgical site,” Jane Mazur, vice president of divisional communications at Hologic, told HCB News. “Coupled with our recent acquisition of Faxitron, BioZorb further expands our ability to help women diagnosed with breast cancer from screening through surgery.”
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Placed by a surgeon, the implantable three-dimensional marker helps clinicians overcome challenges associated with breast conserving surgery, or lumpectomy by marking the tumor excision site for monitoring and future treatments.
The small coil product is composed of six titanium clips arranged in a 3D pattern that is implanted into the breast by the surgeon as the tumor is removed. There, the 3D pattern marks the tumor site, with the coil dissolving over time as the breast tissue heals and the open design of the product allows for tissue in-growth to take place during the healing process.
Expected to close in early October, the acquisition is estimated to be neutral to Hologic’s non-GAAP earnings per share in fiscal 2018 and accretive thereafter, adding to Hologic’s revenue growth rate and gross margin while broadening its recurring revenue base. It is expected to provide an attractive return on invested capital.
"The addition of Focal will further expand Hologic’s offerings and its long-standing commitment to early cancer detection," said Mazur. "It will enable Hologic to play a larger role in breast conserving surgery and widen the company’s position in the continuum of breast care."
The acquisition of Focal Therapeutics, which racked up approximately $16 million in revenue over the last 12 months, pairs BioZorb with solutions acquired from Faxitron, which include VisionCT, the first 3D breast specimen-designated CT systems designed and FDA approved
to offer 360-degree images of excised lesions; and VersaVision digital specimen radiography system, cleared in October by the FDA
for imaging core biopsy and surgically excised specimen samples. Back to HCB News