Biotheranostics

Biotheranostics is a private company which sells tests for molecular diagnosis of breast cancer and metastatic cancer.

History

2021: Hologic purchased Biotheranostics for $230 million

At the beginning of January, 2021 the Hologic company announced acquisition of Biotheranostics for $230 million. It is expected that the transaction will be closed in February, 2021. Its detailed conditions do not reveal.

The main activity of Hologic is health of women, however during a pandemic the company managed to expand the diagnostic division at the expense of tests for COVID-19 and does not intend to be satisfied with what has already been achieved. Analytics of Wall Street were positive for the transaction though some were confused by suggested price. According to analysts, the cost of the transaction ($230 million) exceeds income gained by Biotheranostics in 2020 ($33 million) approximately seven times and exceeds the range of income predicted for 2021 ($30-40 million) approximately six times.

Hologic purchased Biotheranostics

However other analysts consider that such assessment is not unreasonable at all, and some even claim that the transaction does not pay tribute to that profit increase which expects Biotheranostics in the next years.

Analysts were also a little surprised with acquisition as before Hologic was almost not engaged in genomic oncological developments in the field of female health. However, according to Wall Street, "it is [not obligatory] badly", and the transaction fits into broader business strategy of the company. Analysts of SVB Leerink noted that the transaction with Biotheranostics allowed Hologic to gain nearly the lead in the market of molecular diagnostics and will help to strengthen positions of the company after a pandemic.

This transaction, in our opinion, makes important strategic sense, - analysts write. - Acquisition expands business of molecular diagnostics [Hologic] in the market of cancer therapy of a mammary gland and broader oncological market. Besides, Hologic purchased experienced team of experts of Biotheranostics.[1]

Notes