Hologic closes $4B Gen-Probe buyout | Wall Street Beat

MassDevice.com Wall Street Beat

Hologic (NSDQ:HOLX) said its nearly $4 billion buyout of molecular diagnostics giant Gen-Probe (NSDQ:GPRO) is in the books, a day after Gen-Probe’s shareholders OK’d the $82.75-per-share deal.

The acquisition, valued at about $3.7 billion, puts Hologic in the top tier of the diagnostics space, outside of its traditional market, women’s health.

Hologic said the deal should add 20¢ per adjusted share during fiscal 2013 and should be "significantly more accretive" thereafter.

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News of the deal‘s closure, and strong fiscal 3rd-quarter numbers, has helped add 2.7% to HOLX shares since July 30. The stock closed at $18.75 yesterday, up from an $18.26 close July 30.

Hologic reported profits of $23.6 million, or 9¢ per share, on sales of $470.2 million during the 3 months ended June 23, for top-line growth of 4.2% but a bottom-line slide of 34.8%.

Adjusted for 1-time items, however, including $5.1 million in acquisition costs and a $1.7 million charge for the wind-down of its Adiana female sterilization line, EPS hit 35¢, just a penny shy of analysts’ expectations.

Hologic moved to ditch its Adiana permanent female sterilization system after it lost a patent infringement lawsuit to Conceptus (NSDQ:CPTS).

A jury awarded Conceptus $18.8 million and royalties of 20% in October 2011 after finding that the Adiana device infringed on 5 CPTS patents, and the court later denied Hologic’s motion to overturn the jury decision.

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 Analysts’ ups and downs

  • Baxter (NYSE:BAX): Fitch Ratings affirms issuer default rating at "A" and short-term IDR at "F1."
  • Becton Dickinson & Co. (NYSE:BDX): JP Morgan downgrades from "neutral" to "underweight," sets $72 price target.
  • Boston Scientific (NYSE:BSX): Northland Securities downgrades from "outperform" to "market perform"; TheStreet Ratings downgrades from "hold" to sell.
  • Bruker Corp. (NSDQ:BRKR) : Leerink Swann downgrades from "outperform" to "market perform."
  • Conceptus (NSDQ:CPTS): Piper Jaffray reduces rating from "overweight" to "neutral", raises price target from $19 to $21.
  • C.R. Bard (NYSE:BCR): Jefferies & Co. downgrades from "buy" to "hold," cuts price target from $104 to $94.
  • Edwards Lifesciences (NYSE:EW): Zacks reaffirms “neutral” rating and $106 price target.
  • Hologic (NSDQ:HOLX): Cannacord Genuity lowers price target from $24 to $23, maintains “buy” rating.
  • Integra LifeSciences (NSDQ:IART): Piper Jaffray reiterates "neutral" rating, raises price target from $40 to $41.
  • LeMaitre Vascular (NSDQ:LMAT): Canaccord Genuity raises price target from $7 to $8.50.
  • Palomar Medical (NSDQ:PMTI): Needham & Co. cuts price target from $20 to $11, maintains "buy" rating.
  • ResMed (NYSE:RMD): Morgan Stanley reiterates "overweight" rating, raises price target from $32.95 to $33.37.
  • Teleflex (NYSE:TFX): Leerink Swann maintains "market perform" rating, raises price target to $69 from $67.
  • Zeltiq (NSDQ:ZLTQ): Goldman Sacks raises price target from $5.50 to $6.00, maintains “neutral” rating.

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