NEW YORK ─ Marlborough, Massachusetts-based Hologic announced after the close of the market on Tuesday that it will acquire molecular diagnostics firm Biotheranostics for approximately $230 million.
San Diego-based Biotheranostics develops and provides diagnostic, prognostic, and predictive tests that support physicians in the treatment of cancer patients.
The company offers testing services through a CLIA-certified, CAP-accredited laboratory that is directly licensed or otherwise authorized to perform testing in all 50 US states, Hologic said.
Biotheranostics generated approximately $33 million in revenue in 2020.
Hologic said that the acquisition is expected to be slightly dilutive to its non-GAAP earnings per share in fiscal 2021, break-even in 2022, and be accretive thereafter.
The acquisition is expected to close in February.
"Hologic’s leadership in women’s health and molecular automation will accelerate access for both of our novel, proprietary tests, translating into better clinical outcomes for cancer patients," Don Hardison, Biotheranostics’ president and CEO, said in a statement.
For Biotheranostics' Breast Cancer Index test, "our long-held belief is that all women who are being treated with endocrine therapy for their breast cancer deserve to know what is right for them," he said. "In addition, patients facing the challenges of metastatic cancer will have broader access to our CancerType ID offering that can aid in the diagnosis of the tumor type and subtypes representing 95 percent of all solid tumors."
Both PCR-based gene expression tests have been validated in large studies in areas of oncology with critical unmet needs and high growth potential, Hologic said.
Further, the Breast Cancer Index test is included in clinical practice guidelines for breast cancer, and both tests have widespread reimbursement in the US, the firm added.
Steve MacMillan, Hologic’s chairman, president, and CEO, said in a statement that acquiring Biotheranostics "leverages our strengths in molecular diagnostics and complements our leadership in breast health, while providing attractive growth and return on invested capital."