Hologic to Acquire Diagnostic Tests Provider Biotheranostics

Hologic, Inc. (Marlborough, MA, USA) has agreed to acquire Biotheranostics, Inc. (San Diego, CA, USA), a privately held, commercial-stage company that provides molecular diagnostic tests for breast and metastatic cancers, for approximately USD 230 million.

Biotheranostics is a commercial-stage molecular diagnostics company that develops and provides diagnostic, prognostic and predictive tests that support physicians in the treatment of cancer patients. The company offers testing services through its CLIA-certified, CAP-accredited laboratory that is directly licensed or otherwise authorized to perform testing in all 50 states in the US. Both of Biotheranostics’ tests are PCR (polymerase chain reaction)-based gene expression tests that have been extensively validated in large studies in areas of oncology with critical unmet needs and high growth potential. The BCI test is included in several clinical practice guidelines for breast cancer, and both tests enjoy widespread reimbursement in the US.

“Acquiring Biotheranostics enables us to jump-start our entry into a large, fast-growing oncology adjacency that fits perfectly with our broader corporate focus and passion for women’s health,” said Kevin Thornal, Hologic’s Division President, Diagnostics. “Together with the Biotheranostics team, we can leverage our commercial capabilities and expertise in molecular diagnostics automation to accelerate growth, help physicians make more informed decisions, and deliver more personalized treatment and better clinical outcomes for more women. In addition, Biotheranostics’ CLIA (Clinical Laboratory Improvement Amendments) lab provides us new capabilities to help accelerate market development for innovative new tests.”

“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,” said Steve MacMillan, Hologic’s Chairman, President and Chief Executive Officer. “Acquiring Biotheranostics leverages our strengths in molecular diagnostics and complements our leadership in breast health, while providing attractive growth and return on invested capital.”