Hologic's performance during the first year of the COVID-19 pandemic made such an impression on you, our readers, that it was voted MD+DI Readers' Choice for Medtech Company of the Year 2020. This year it was our editorial team's turn to be impressed with the Marlborough, MA-based company.
It wasn't an easy decision, given that all of this year's finalists made tremendous strides despite considerable challenges in 2021, but we ultimately decided that the honor of MD+DI Editors' Choice for Medtech Company of the Year goes to Hologic.
To say that Hologic is making good use of the capital gained from its stellar COVID-19 diagnostics sales might be an understatement. The company has announced no less than five acquisitions this year, positioning itself to become a diversified leader in the diagnostics space long after the pandemic is behind us.
The company kicked off 2021 with the $64 million acquisition of Somatex Medical Technologies and announced its $230 million deal to acquire Biotheranostics. Somatex helped Hologic expand its presence in breast health with minimally invasive devices in the areas of tumor diagnostics, biopsy, and interventional specialties. Through Biotheranostics, Hologic inherited polymerase chain reaction (PCR) gene expression oncology tests with high-growth potential, including breast cancer.
By March it was evident that the company had no intention of slowing its roll, as it acquired Diagenode for $159 million. Diagenode developed more than 30 real-time PCR tests that are CE-marked for the detection of bacteria, parasites, and viruses involved in sexually transmitted infections, respiratory diseases, meningitis, and gastroenteritis.
Hologic also ponied up $795 million for Mobidiag Oy and $160 million for Bolder Surgical this year.
As with 2020, Hologic's impressive performance this year ($5.63 billion in total revenue, up 47% over 2020) was driven by COVID-19 test sales, along with the recovery of the company's core women's health businesses. But the company saw notable growth even without counting revenue from COVID-related products.
"We believe we are well-positioned for success regardless of the future direction of the pandemic," CEO Stephen MacMillan said during the company's fourth-quarter earnings call in November. "If it drags on, we have shown that we can respond aggressively and generate financial upside. For example, since the beginning of the pandemic we have provided more than 130 million highly accurate COVID tests to our customers in more than 50 countries. And when the pandemic subsides, we can rely on a base business that has never been stronger or more diversified than it is today."
MacMillan said Hologic has used the cash flow from COVID test sales to acquire companies that are expected to generate more than $150 million in revenue in 2022.
It seems the employees at Hologic also are basking in the company's 2021 accomplishments.
"As I visit Hologic sites and talk to employees, the sense of pride, morale and engagement is palpable," MacMillan said. "The belief in our mission to enable healthier lives everywhere, every day is real. I personally have never been more proud or excited for our organization."
Congratulations to Hologic, and all of this year's finalists, on a great year. We will announce this year's Readers' Choice for Medtech Company of the Year next week.