Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Covid-19 Test Maker Hologic Hits a Record After Cowen Upgrade

Published 06/30/2020, 01:01 PM
Updated 06/30/2020, 01:02 PM
© Reuters.

By Christiana Sciaudone -- Hologic Inc (NASDAQ:HOLX)shares rose more than 5%, hitting a record, after Cowen upgraded the medical device maker on demand for Covid-19 testing. Shares have almost doubled since March.

Analyst Chris Lin upgraded Hologic to outperform from market perform and boosted his price target to $64 from $55, according to GenomeWeb. Hologic should place a greater number Panther diagnostic systems this year.

“While these placements are primarily driven by Covid-19 testing needs in the near term, we believe labs will continue to utilize these instruments once Covid-19 testing abates,” said Lin, who estimates Hologic will generate more than $1.5 billion from SARS-CoV-2 test revenue through the end of fiscal 2021.

Hologic has the capacity to manufacture more than 1 million SARS-CoV-2 tests per week, and management expects that capacity to "meaningfully increase" later this year, Lin said.

The U.S. Food and Drug Administration granted Emergency Use Authorization for Hologic's Panther Fusion SARS-CoV-2 assay in March and for its Aptima SARS-CoV-2 assay running on the Panther system in May.

In the second quarter, molecular diagnostics revenue of $191 million increased about 14%, the division’s highest growth rate since 2012, which included $3.4 million of sales from the Panther Fusion SARS-CoV-2 assay. Hologic scaled up manufacturing and is now producing nearly 600,000 Panther Fusion SARS-CoV-2 tests a month, representing a 12-fold increase in capacity for similar tests that run on the Panther Fusion system.

The company withdrew its financial guidance in April, saying that the Covid-19 pandemic would likely have a significant negative impact on future revenue and operating income.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.