Hologic to pay $230M for San Diego cancer test company

Photo | Grant Welker Hologic's Marlborough headquarters

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By Sam Bonacci

Hologic is continuing its acquisition spree with an agreement to purchase San Diego cancer test firm Biotheranostics for $230 million, the Marlborough company announced late on Monday.

The acquisition is the third for the medical device manufacturer in the last five months and the largest financial outlay of all the transactions. Early on Monday, the company announced the $64 million purchase of biopsy firm SOMATEX Medical Technologies GmbH, based in the German capital of Berlin, with the aim of expanding its European presence. In August, Hologic announced a roughly $80-million acquisition of Texas-based Acessa Health with a minimally invasive treatment alternative to hysterectomies and myomectomies, according to Hologic.

Biotheranostics is a privately-held commercial-stage company providing molecular diagnostic tests for breast and metastatic cancers. The company’s Breast Cancer Index test is included in several clinical practice guidelines for breast cancer, and both tests enjoy widespread reimbursement in the United States.

“Using our strong cash flow to further expand our core businesses into large, fast-growing adjacencies is a key goal of our capital deployment strategy,” Steve MacMillan, Hologic’s chairman, president and CEO, said in the release. “Acquiring Biotheranostics leverages our strengths in molecular diagnostics and complements our leadership in breast health, while providing attractive growth and return on invested capital.”

Biotheranostics generated approximately $33 million of revenue in the 2020 calendar year. The acquisition is expected to be slightly dilutive to Hologic’s non-GAAP earnings per share in fiscal 2021, break-even in 2022, and have gradual growth thereafter.

The acquisition is expected to close this February, subject to antitrust clearance and other customary closing conditions.