Hologic, Inc. of Bedford, Mass. has signed a definitive agreement to acquire Third Wave Technologies, Inc. The Boards of Directors of both companies unanimously approved the transaction.

Third Wave develops and markets molecular diagnostic reagents for a wide variety of DNA and RNA analysis applications based on its proprietary Invader® chemistry. The company's current clinical diagnostic offerings consist of products for conditions such as Cystic Fibrosis, Hepatitis C, cardiovascular risk and other diseases. The company recently submitted pre-market approval (PMA) applications to the FDA for two human papilloma virus, or HPV, tests. These submissions are based on a successfully completed clinical trial. There are currently 10 million HPV tests being performed in the United States, representing a $200 million market and growth in excess of 40% in each of the past five years. Hologic believes the global market for HPV testing will increase to $800 million in the next few years.

Jack Cumming, Chairman and Chief Executive Officer of Hologic, said, "The combination of Hologic and Third Wave brings together two great companies that employ complementary technologies but share a common mission: to help save the lives of women. Hologic is an established, diversified provider of diagnostic products and therapeutic devices. Third Wave's products in development, including its HPV tests, employ a patented molecular diagnostic platform designed to help identify cervical cancer and other diseases at an early stage. This important transaction will broaden Hologic's range of diagnostic product offerings, enhance our revenue and earnings growth potential and, we believe, create long-term value for our shareholders.

"Specifically, we expect our acquisition of Third Wave to help accelerate the growth of our diagnostics division," Mr. Cumming continued. "Once FDA approval is obtained, these products will be a complementary fit with our current suite of products, and broaden our product offerings into high-growth diagnostic markets for women.

"Hologic has an established sales and distribution network for women's health, as well as extensive relationships with clinical labs and OB/GYN channels," Mr. Cumming said. "If and when Third Wave's HPV tests receive FDA approval, which we hope will be in the first half of calendar 2009, we will be well positioned to take these products quickly and effectively to market. We expect the integration process to be smooth and seamless. We look forward to welcoming Third Wave's outstanding associates to Hologic when the transaction is completed, and to participating in the launch of Third Wave's existing and future product lines.

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