Hologic Inc. (HOLX), a leading provider of healthcare products for women, is currently showcasing some of its latest offerings at the 38th Arab Health Congress at the Dubai International Convention and Exhibition Centre. The company undertook this marketing initiative mainly to attract potential customers from the Middle-East. The conference is likely to host 83,000 medical experts from 142 countries.
Some of the Hologic’s products displayed at the conference include market leading 2D and 3D mammography systems (Selenia Dimensions) for breast tomosynthesis, the SecurView diagnostic workstation, and the Atec breast biopsy system. Also featured are the Panther system and the associated Aptima assay, which were inducted into Hologic’s portfolio with the acquisition of Gen-Probe in August 2012.
The ThinPrep Pap Test and ThinPrep Imaging systems for cervical cancer screening featured at the event are the driving factor behind growth in the company’s Diagnostics business. These apart, Hologic's Discovery bone densitometry platform, NovaSure endometrial ablation system and MyoSure tissue removal device are also on display.
In an effort to expand its global reach, Hologic is building on its international infrastructure and fortifying management resources, particularly in the emerging markets of China, Latin America, the Middle East and Eastern Europe. In fiscal 2012, the company generated 27% of its revenues from international operations.
As a part of its growth strategy to focus on international markets and the Middle East, the company is opening a new office in Dubai Healthcare City. The office is scheduled to open in the first quarter of 2013.
However, over the past few quarters, Hologic witnessed several challenges in the form of economic uncertainties in Europe, slower sales cycles and increasing pricing pressure. Moreover, fluctuating foreign currency might adversely affect its international revenues and operating results, particularly in the Diagnostics segment, which has maximum exposure to international markets.
The stock carries a Zacks Rank #3, which translates into a short-term Hold rating. Medical instrument companies, such as Cantel Medical Corp. (CMN), Delcath Systems, Inc. (DCTH) and Cyberonics Inc. (CYBX) with Zacks Rank #1 (Strong Buy), are expected to do well.