Archive for the ‘ strategy ’ Category

Hologic Acquires Gen-Probe: A Commercial Analysis

by Greg Emmerich, UW Madison M.S. Biotechnology Program. Business of Biotechnology: Frontiers and Strategies. Final Paper. April 23rd, 2013.  Privacy Disclaimer; Figure Templates.

Executive Summary

  • Hologic closed a $3.97 billion deal to acquire Gen-Probe in August 2012.  Hologic must be able to create significant value in order to justify such a large purchase as it moves forward.
  • Molecular diagnostics is the fastest-growing segment of the in vitro diagnostic market, which is expected to reach $67.2 billion by 2016.
  • The overall analysis of the acquisition is favorable.  However, the market is fiercely competitive and reliant upon decreasing reimbursement plans.
  • Hologic has strong capabilities with its sales force, but is too dependent on single suppliers and very large customers.
  • Success in the market is dependent on ability to innovate and adapt to change.  Hologic’s internal R&D needs to strengthen in that regard.
  • Four action steps are recommended to Hologic to overcome these challenges. Continue reading
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