Hologic Bets on Endomagnetics to Fuel Interventional Breast Momentum

Over the years, Hologic’s HOLX Breast Health business has evolved, shifting from a heavily capital-focused approach to generating higher recurring revenues. While service revenues now exceed capital sales, the Interventional Breast Solutions segment, which includes Brevera, biopsy needles and markers, is also gradually expanding and contributing more to recurring revenues. This is where Endomagnetics (Endomag) positions itself. It is the Cambridge, UK-based developer of breast cancer surgery technologies, which Hologic acquired in 2024.The transaction added Endomag’s wireless breast surgery localization and lymphatic tracing solutions, including the Magseed marker, the Magtrace lymphatic tracer and the Sentimag platform, to Hologic’s breast surgery portfolio, providing breast surgeons and radiologists with an expanded range of options and enhanced user experience. With the market transitioning from wire to wireless marking for breast surgery, Hologic is well-positioned to tap into this significant opportunity.The acquisition was expected to be slightly dilutive to Hologic’s non-GAAP earnings per share in fiscal 2024, break even in 2025 and accretive thereafter. During the second quarter, Hologic began selling Endomag products directly through its sales force in North America, replacing the previous distributor approach.  Encouragingly, the business has been exceeding Hologic’s deal model, contributing nearly $20 million of revenues at a very healthy gross margin in the third quarter of fiscal 2025. For context, Endomag carries higher margins than the company’s legacy business.Hologic topped $100 million in Interventional sales for the first time in the third quarter. The business is gradually becoming a meaningful growth driver, building on the vision the company had put in place years ago for the breast care continuum. With Endomag shifting to Hologic’s organic revenues in the current quarter, it further raises confidence for the Interventional business.M&A Activity Among Hologic’s CompetitorsMedtech giant Boston Scientific BSX frequently pursues strategic tuck-in M&A in high-growth adjacencies. The sales impact of closed acquisitions contributed 420 basis points, resulting in 17.4% organic revenue growth in the second quarter of 2025. In May, BSX completed the acquisition of the remaining shares of SoniVie Ltd., which expanded its Interventional Cardiology Therapies offerings with ultrasound-based renal denervation therapy for the treatment of hypertension.Boston Scientific also acquired Intera Oncology, adding its Intera 3000 Hepatic Artery Infusion Pump to administer hepatic artery infusion therapy to treat liver-dominant metastases to the Interventional Oncology portfolio. In April, the company purchased the remaining equity stake in Bolt Medical, bolstering its capabilities to address coronary and peripheral diseases.Stryker Corp. SYK, a renowned medtech company, continues to invest in new products and technologies through acquisitions. Earlier this year, the company completed the acquisition of Inari Medical, Inc., a provider of venous thromboembolism (VTE) clot removal solutions without the use of thrombolytic drugs. The addition brought an established peripheral vascular position to Stryker in the fast-growing VTE segment. Last year, the company acquired Vertos Medical, which enhanced its non-surgical solutions for interventionalists addressing chronic lower back pain while broadening its presence in ambulatory surgery centers.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report Stryker Corporation (SYK): Free Stock Analysis Report Hologic, Inc. (HOLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks