Hologic is acquiring Focal Therapeutics for $125 million in cash to supplement its breast-conserving surgery franchise following its recent purchase of Faxitron Bioptics.
Securing Focal brings in its BioZorb implantable, three-dimensional radiographic marker, used in lumpectomies to designate tumor excision sites for monitoring and future treatments. The permanent implant’s open design allows for tissue in-growth and healing.
Placed during the tissue removal procedure with a range of sizes, the device’s titanium marker clips work with current screening and imaging methods to help improve outcomes over the long term.
A 2015 study evaluated follow-up images from 110 patients implanted with the BioZorb device for three years, and showed that the marker helped physicians target radiation treatments following a lumpectomy.
It also helped them better visualize the tumor removal site in subsequent mammograms and MRIs, where scar tissue can hide or resemble newly developing cancers. In addition, the shape of the device helps maintain the contour of the breast and promotes growth into the area where tissue was removed. BioZorb received 510(k) clearance from the FDA in June 2015.
“Acquiring Focal Therapeutics strengthens our position in an attractive, adjacent breast health market, and is consistent with our capital deployment goals,” Steve MacMillan, Hologic’s chairman, president and CEO, said in a statement.
“The transaction is accretive to our revenue growth rate and gross margin, broadens our recurring revenue base, and provides attractive return on invested capital,” MacMillan said. The Sunnyvale, California-based Focal brought in about $16 million in revenue over the past 12 months.
The radiographic imaging company Faxitron, meanwhile, was acquired by Hologic earlier this year for $85 million, including its products in lesion localization and sentinel lymph node biopsy. Faxitron recently introduced its VisionCT platform, which takes 360-degree images of excised breast lesions using a specimen-designated CT scanner.