Hologic to Widen Presence in Women's Health Segment

Hologic, Inc. (Bedford, MA, USA) will acquire Third Wave Technologies, Inc. (Madison, WI, USA) for a purchase price of approximately US$580 million. In so doing the company expects to accelerate growth and widen its presence in the women's health market. Completion of the transaction is anticipated in the third calendar quarter of 2008.

The merger gives Hologic a solid platform for future opportunities in molecular diagnostics. Third Wave develops and markets molecular diagnostic reagents for a wide variety of DNA and RNA analysis applications based on its Invader chemistry. The company's current clinical diagnostic offerings consist of products for conditions including Cystic Fibrosis, Hepatitis C, and cardiovascular risk.

Third Wave recently submitted the pre-market approval (PMA) applications for its two human papillomavirus (HPV) tests--Cervista high risk (HR) and Cervista 16/18 HPV-- to the U.S. Food and Drug Administration (FDA; Rockville, MD, USA). These submissions are based on a recently completed clinical trial for its 14-type high-risk and 16/18 genotyping tests where all primary clinical endpoints were achieved.

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.

The acquisition should improve the standard for HPV testing by providing a more efficient test process with increased specificity to Hologic customers, as well as a platform for additional tests and services.

Jack Cumming, chairman and chief executive officer of Hologic, said, "Hologic has an established sales and distribution network for women's health, as well as extensive relationships with clinical labs and Ob/Gyn [obstetrics/gynecologic] channels. If and when Third Wave's HPV tests receive FDA approval, expected sometime in the first half of calendar 2009, we will be well-positioned to take these products quickly and effectively to market.”


Related Links:
Hologic
Third Wave Technologies
U.S. Food and Drug Administration