67 WALL STREET, New York - March 19, 2012 - The Wall Street Transcript has just published its Medical Devices Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Stable Utilization and Personal Health Expenditures - Continued Pricing Pressure - Medical Device Excise Tax - Multinational Penetration in Emerging Markets
Companies include: Cardinal Health (CAH); Positron Corporation (POSC); Abiomed (ABMD); ArthroCare (ARTC); Baxter (BAX); and many more.
In the following brief excerpt from the Medical Devices Report, expert analysts discuss the outlook for the sector and for investors.
Robert A. Cascella, President and Chief Executive Officer of Hologic, Inc., has served as a Director of the company since June 2008 and as CEO since November 2009. He joined Hologic in February 2003 as Chief Operating Officer and was promoted to President in September 2003. Mr. Cascella has more than 20 years of senior management, operational and finance experience with companies ranging from early-stage, entrepreneurial business to Fortune 500 companies. He joined Hologic from CFG Capital LLC, an investment banking firm specializing in health care, where he was a Managing Partner. Before CFG Capital, Mr. Cascella was Chief Operating Officer and Vice President of Finance for NeoVision Corporation, a developer of 3D-ultrasound technology used for real-time guidance of interventional breast procedures. Before that, Mr. Cascella was employed at Fischer Imaging Corporation, where he held the positions of President, Chief Operating Officer and Chief Financial Officer. He began his career at PerkinElmer in Norwalk, Conn. Mr. Cascella received a B.S. in finance from Fairfield University in 1978.
TWST: Would you provide an overview of Hologic, including its market, its position within that market and the customer base it seeks to serve?
Mr. Cascella: Hologic (HOLX)is a women's health company. Some research companies report we are the leader in women's health in the U.S. We develop, manufacture and supply premium diagnostic products, medical imaging systems and surgical products for serving the health care needs of women throughout the world. Our four core business units are focused on breast health, diagnostics, GYN surgical and skeletal health. Our major products hold the number one or number two share in virtually every one of the segments where we operate.
By way of example, in the area of breast health, our primary product is mammography. In recent quarters, we have been placing over 70% of the digital mammography systems installed. We are also the largest player in the vacuum-assisted breast biopsy and computer-aided detection markets in the U.S. In diagnostics, our market share of the liquid-based cytology tests sold in the U.S. is about 70%. In a little over a year, we already have a market share in the high teens of the HPV market. In GYN surgical, our primary product, NovaSure, treats abnormal uterine bleeding. In that market, we have around a 65% market share as well.
What's different about Hologic is we are very disease and patient centric. When we focus on a vertical, like breast cancer, we want to be very, very deep in technologies in that space. For example, we offer screening, diagnostic, interventional and treatment products within the breast cancer disease state. Similarly, in the area of cervical cancer, we have complementary products for HPV screening and we are developing products for other sexually transmitted diseases like chlamydia, gonorrhea and trichomoniasis. With our GYN surgical products, we have built a suite of products that allow the GYN surgeon to treat a variety of pelvic health issues for women.
TWST: Please give us an overview of the women's health industry today and trends in this industry that would impact what Hologic is developing. Are there positives? Are there cautionary steps out there?
Mr. Cascella: I think the health care world is looking at the comparative effectiveness of technologies. Successful products have to be efficacious, but they also have to save money. A primary focus of Hologic is saving lives through early detection. At the same time, we're trying to find ways to take cost out of the health care system. We believe that if we can find diseases that impact women earlier and that also saves the health care system money, we will be successful. For example, if we can reduce the number of false positives in a breast, cervical or prostate cancer screening exams, we'll save money, increase compliance and save patient anxiety. We think that finding new efficacious, lower-cost products is not just true in the U.S. and Europe, it's a global trend. In our discussions with leaders in emerging markets, we hear over and over about how they want to establish women's health as a priority, but they want to do it in a very, very cost-effective way.
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