Hologic said it will acquire Focal Therapeutics, maker of the BioZorb implantable device used in breast cancer surgery to mark the site where a tumor has been removed.
Hologic agreed to pay $125 million for this latest addition to its breast health product portfolio, two months after it announced the purchase of digital imaging systems maker Faxitron Bioptics in a $85 million deal.
Marlborough, Mass.-based Hologic said the acquisition of Focal Therapeutics, which is expected to close in early October, would be neutral to adjusted earnings per share in fiscal 2019 and add to earnings after that.
Through the pair of acquisitions, medtech company Hologic is strengthening its position in the market for breast-conserving surgery, also known as lumpectomy. Hologic focuses primarily on women's health products, with a portfolio of mammography, diagnostic, gynecologic and medical aesthetics devices.
The BioZorb implant is placed by the surgeon after tumor removal to help delineate the surgical cavity for radiation treatment and long-term monitoring after surgery. The device is intended to facilitate more precise targeting of the radiation treatment. The device's bioabsorbable materials dissolve in the body over the course of a year or more, though six titanium clips remain in place.
The deal for Sunnyvale, Calif.-based Focal Therapeutics comes on the heels of Hologic’s acquisition of Faxitron Bioptics, whose portfolio of products includes digital specimen radiography, breast lesion localization, and sentinel lymph node biopsy. Faxitron recently introduced the VisionCT 3D breast specimen-designated CT system offering 360-degree images of excised lesions.
Focal Therapeutics had revenue of about $16 million in the last 12 months; Faxitron generated about $27 million of revenue in its last fiscal year.
"Focal Therapeutics has commercialized an innovative marker that improves the standard of care for breast cancer patients by creating a permanent, three-dimensional indicator of the surgical site," Pete Valenti, president of Hologic's Breast and Skeletal Health Solutions division, said in a statement. "Coupled with our recent acquisition of Faxitron, BioZorb further expands our ability to help women diagnosed with breast cancer from screening through surgery."