Hologic's (HOLX) New Offering To Revitalize Cynosure Division
Zacks Investment Research | Dec 14, 2018 06:41AM ET
Leading player in the field of women's health, Hologic, Inc. (NASDAQ:HOLX) recently announced that its Cynosure division has launched the FDA-approved TempSure Surgical RF technology in North America. Notably, this latest product belonging to the TempSure radiofrequency (RF) platform allows surgical and non-surgical aesthetic procedures across several specialties on a single device.
Following the FDA’s inquiry on products used in energy-based women’s health procedures, Cynosure has decided to continue marketing its MonaLisa Touch CO2 laser. The company has also returned TempSure Vitalia hand pieces and probes to the market. These developments are expected to boost the top-line contribution from Cynosure division in the near term.
Market Potential
According to MarketsandMarkets, the global medical aesthetics market is expected to reach a worth of $13.29 billion, at a CAGR of 10.8% from 2016 to 2021. Thus, the company clearly has bountiful opportunities in this niche market, both globally and internationally.
A Glimpse of the Cynosure Business
Hologic has been seeing declining Cynosure sales as a result of the FDA’s letter regarding certain women's health procedures and the company’s voluntary decision to suspend marketing of its TempSure Vitalia product. Notably, sales in the fiscal fourth quarter were more than $15 million lower than expected due to refunds and rebates related to previous sales of Vitalia handpieces, unused probes, and TempSure systems along with decreased MonaLisa Touch sales.
We believe the latest progress will help the company overcome these obstacles and deliver solid performance.
Share Price Movement
Hologic has consistently outperformed its Zacks Investment Research
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