- The Addition of Hologic’s Sales Force and International Presence is Expected to Contribute to PROGENSA® PCA3 Sales Growth-
Report is Available for Download at: www.lifesciadvisors.com/clients/diagnocure
On Monday, Hologic, Inc. (NASDAQ: HOLX) announced the Company’s proposed acquisition of Gen-Probe (NASDAQ: GPRO), which is DiagnoCure’s (TSX: CUR) commercial partner for the PROGENSA® PCA3 prostate cancer diagnostic test. We view this development as favorable as we think there is potential for PROGENSA® PCA3 sales to increase due to new synergies created by the acquisition.
Following the announcement of the acquisition Monday morning, DiagnoCure put out a statement on Tuesday morning regarding the news. We report that DiagnoCure management also sees this acquisition as favorable due to the potential combination of resources that can be used behind the marketing of PROGENSA PCA3.
The Combination of Both Sales and Marketing Teams, Including Hologic’s International Sales Force, is Expected to Drive Adoption of Gen-Probe’s Products, which Includes PROGENSA® PCA3. Per the terms of the proposed transaction, Gen-Probe will become a wholly-owned subsidiary of Hologic and this transaction is expected to be immediately accretive by adding $0.20 to Hologic’s EPS in the 12 months following the close of the transaction. DiagnoCure notes that Hologic does intend to market Gen-probe’s products on a global basis in developed and emerging markets. The combination of both companies is expected to create a greater global sales and marketing infrastructure. Internationally, Hologic has a greater sales force and we expect the Company to use its 400 direct representatives and 135 dealers around the world to accelerate the adoption of Gen-Probe’s automation and assays, including the PROGENSA® PCA3 diagnostic test. China alone represents a large growth opportunity as Hologic has five hundred people there currently. Two Gen-Probe representatives have already been added.