Hologic Inc., which focuses on women’s health, said Jan. 4 that it has completed the acquisition of Somatex Medical Technologies GmbH for roughly $64 million. Based in Berlin, Somatex focuses on minimally invasive devices for tumor diagnostics, biopsy and interventional specialties.
Somatex’s portfolio includes biopsy site markers and localization technologies, including Trumark markers. The company was previously owned by E-Med Solutions GmbH, a group of investors led by German private equity firm Westlake Partners.
“The acquisition of Somatex allows us to expand our biopsy portfolio by providing a suite of market-leading solutions that not only address our customers’ needs but also improve the biopsy experience for their patients,” said Jennifer Meade, Hologic’s division president for breast and skeletal health solutions. “We’ve had a strong partnership with Somatex for several years, which along with our shared focus on innovation, will allow us to quickly integrate and begin building a pipeline that will drive profitable growth and recurring revenue for our breast health business globally.”
With Somatex, Hologic gains additional shapes and types of biopsy marking and lesion localization products globally, as well as increased capabilities to drive innovation of differentiated solutions going forward, spokeswoman Jane Mazur told BioWorld. Before the acquisition, the Marlborough, Mass.-based company distributed select Trumark markers in the U.S. and in select European markets, including markers designed specifically for Hologic’s Eviva and Brevera biopsy systems.
Expands European footprint
The acquisition also gives Hologic a direct channel in Germany and Somatex’s network of regional and international distribution partners.
The business will be folded into Hologic’s breast and skeletal health business over the coming months, Mazur said. “At this point, we’re focused on getting to know each other and developing a comprehensive integration plan so we can ensure a seamless transition for all employees, customers and partners.”
“For years, Somatex has been committed to driving innovative, best-in-class tumor marker and localization solutions for our customers and their patients and to becoming a leader in our space,” said Joerg Heise, managing director of Somatex. “We are excited to continue this journey through Hologic and their global footprint, providing so many more with access to these pioneering technologies that aid in the early detection and treatment of breast cancer.”
Somatex is expected to generate roughly $13 million of revenue in calendar 2020, including sales of its Tumark biopsy site markers to Hologic. The acquisition is expected to be slightly accretive to Hologic’s non-GAAP earnings per share beginning in the current fiscal year.
Breast benefited from diversity
Hologic revenue climbed 73% to $1.35 billion in the fourth quarter of fiscal year 2020, bolstered by $600 million in COVID-19 tests and $818 million in total molecular sales. In breast health, global sales declined 16.2% to $289.2 million, as sales of capital products were depressed by the COVID-19 pandemic.
During a Nov. 4, 2020, earnings call, CEO Stephen MacMillan said “the increasing diversity of our [breast health] business cushioned the overall decline as consumables and service essentially return to their pre-COVID levels. For example, our interventional business was basically flat, helped by the relaunch of our Brevera biopsy system late in the quarter, and service revenue, which was larger than capital sales, grew slightly.”
Last month, Hologic reported U.S. FDA clearance of Genius AI Detection, deep learning-based software to help radiologists detect subtle potential cancers in breast tomosynthesis images. Its Genius Digital Diagnostics system for cervical cancer screening earned the CE mark in November.
The company recently launched two other products as well: the Omni Suite for hysterectomy to complement its existing line of gynecological surgical offerings and the Unifi Analytics platform, a tool to provide mammography centers with insights on technologist performance, proactive device maintenance and other functionalities to optimize performance.
Hologic has previously said that business development is an integral part of its growth strategy, and it remains on the watch for tuck-in opportunities that could complement its businesses.
The Somatex acquisition follows Hologic’s purchase of Austin-based Acessa Health Inc., a company that has developed a minimally invasive treatment for fibroids. That deal – for about $80 million in cash plus contingent payments based on future revenue growth – was completed in August 2020.
Since then, “Hologic has been working to significantly expand the reach and adoption of the Acessa Provu system and ensure a seamless transition of the product line into our surgical portfolio,” Mazur said. That effort includes both a clinical plan to expand payer coverage and educational programs for physicians.