Hologic has entered a definitive agreement to buy medical devices maker Focal Therapeutics for a cash consideration of $125m.
Focal Therapeutics portfolio consists of an implantable, bio-absorbable, three-dimensional device called BioZorb marker. The device already has the US Food and Drug Administration (FDA) 510(k) clearance.
The marker is designed to enable marking of tumour excision site during surgery, including breast conserving surgery or lumpectomy, for monitoring and future treatments. It also facilitates tissue in-growth during healing.
Hologic Breast and Skeletal Health Solutions division president Pete Valenti said: “Focal Therapeutics has commercialised an innovative marker that improves the standard of care for breast cancer patients by creating a permanent, three-dimensional indicator of the surgical site.
“Coupled with our recent acquisition of Faxitron, BioZorb further expands our ability to help women diagnosed with breast cancer from screening through surgery.”
Focal Therapeutics generated around $16m in revenue over the past year. The acquisition is set to close next month and is estimated to be neutral to Hologic’s non-GAAP earnings per share in fiscal 2019.
Hologic chairman, president and CEO Steve MacMillan said: 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.”
The latest deal follows the company’s $85m acquisition of Faxitron Bioptics, a digital specimen radiography firm, in July this year.
Faxitron’s digital specimen radiography, breast lesion localisation and sentinel lymph node biopsy products broadened Hologic’s breast health product portfolio.