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Hologic's Acessa Health Buyout to Broaden GYN Surgical Line

With an aim to broaden its foothold in minimally invasive surgical procedures, Hologic Inc. HOLX recently purchased privately-held Acessa Health Inc. The deal was priced at $80 million including cash and contingent payments based on future revenue growth.

In the field of women’s health, Acessa Health is a popular name that works on minimally invasive treatment of fibroids. The company pioneers the usage of radiofrequency ablation under laparoscopic ultrasound guidance for the treatment of uterine fibroids.

Importance of the Deal

Hologic, which holds a leading position in the field of women’s healthcare, is expected to particularly broaden its GYN Surgical portfolio with the Acessa Health acquisition. Acessa Health currently markets FDA’s 510(k) cleared Acessa ProVu system, which is a minimally invasive system for the treatment of symptomatic uterine fibroids. With the acquisition, Acessa ProVu is expected to get perfectly aligned with Hologic’s existing fibroid treatment portfolio. More specifically, this will complement Hologic’s market-leading MyoSure products, which can be used for hysteroscopic removal of fibroids found in the uterine cavity.

How Acessa ProVu Works?

Acessa ProVu is a fully integrated laparoscopic system that combines radiofrequency ablation with advanced intra-abdominal ultrasound visualization and guidance mapping. This is particularly helpful in treating symptomatic, benign uterine fibroids. It is also designed to detect more fibroids compared to current imaging modalities. Clinical data has shown Acessa ProVu to be a safe and minimally invasive alternative to hysterectomy and myomectomy. Study data also claims that this radiofrequency treatment of fibroids results in lesser blood loss and faster recovery times compared to standard treatments currently available.

Market Prospect of Hologic

Uterine fibroids (or uterine leiomyomas or myomas) are benign tumors that grow in or on the uterus. This is a very common type of gynecological problem that leads to heavy menstrual bleeding, pain, frequent urination, and other symptoms. Going by the company-provided data, the incidence of uterine fibroids is 50% to 60% among age group less than 50 years and increases to approximately 70% by the age of 50.

In fact, African American women particularly in their early age are two to three times more likely to be affected by fibroids compared to Caucasian or Asian women. Fibroids are a significant cause of morbidity in this population.

This huge prevalence of this disease is a clear indication of the enormous market potential of this niche. Hologic, with the acquisition of Accessa Health, is expected to witness solid customer adoption of this new set of combined procedures within GYN Surgical arm.

Price Performance

Shares of the company have gained 37% in the past year compared with the industry’s 10.2% growth.

Zacks Rank & Other Key Picks

Currently, Hologic sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks from the broader medical space are QIAGEN N.V. QGEN, LHC Group, Inc. LHCG and Thermo Fisher Scientific Inc. TMO.

QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

LHC Group’s long-term historical earnings growth rate is pegged at 23.3%. The company presently sports a Zacks Rank #1.

Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).

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Hologic, Inc. (HOLX): Free Stock Analysis Report
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