Hologic (NSDQ:HOLX) said it closed the $125 million deal to acquire bioresorbable tissue marker developer Focal Therapeutics yesterday.
Aliso Viejo, Calif.-based Focal Therapeutics makes the BioZorb bioresorbable, three-dimensional tissue marker for marking the tumor excision site in lumpectomies.
Hologic said it plans to add the BioZorb marker to its breast health product portfolio. The Marlborough, Mass.-based company said that the deal, and the recent acquisition of Faxitron Bioptics, significantly strengthen its position in the breast-conserving surgery market.
“Acquiring Focal Therapeutics strengthens our position in an attractive, adjacent breast health market, and is consistent with our capital deployment goals. The transaction is accretive to our revenue growth rate and gross margin, broadens our recurring revenue base, and provides attractive return on invested capital,” president & CEO Steve MacMillan said when the deal was announced last month.
“We are very excited to become part of Hologic. Hologic’s long-standing commitment to early cancer detection is key for success in breast conserving surgery. Hologic is the perfect fit for our company,” added Focal Therapeutics co-founder & chief medical officer Dr. Gail Lebovic.
Focal Therapeutics posted sales of roughly $16 million over the past year, Hologic has said. The company expects the acquisition to be neutral to its non-GAAP earnings per share for the fiscal year 2019 and accretive after.
Also last month, Hologic lowered the revenue expectations for its Cynosure division by $15 million to take into effect lost and reduced sales associated with an FDA warning from last month which raised concerns about the validity and functionality of “vaginal rejuvenation” products and procedures.
