Diagnostics, acquisitions, Biotech

Third Wave Means Extra Power For Hologic

Erik Mellgren 6/9/08

Medical device and diagnostics company Hologic (NASDAQ: HOLX) of Bedford, MA, hopes to accelerate its growth in the diagnostics market. To that end, the company today announced an agreement to put up $580 million to buy Third Wave Technologies (NASDAQ: TWTI), which develops molecular diagnostics, especially for HPV, human papilloma virus.

Hologic specializes in women’s health products, including mammography systems, instruments for gynecological surgery, and diagnostic tests for cervical cancer—so called Pap smears. This is also where the Third Wave acquisition fits in, as infection with human papilloma virus can lead to cervical cancer. At present, the Wisconsin-based company has two HPV tests waiting for approval.

“If and when Third Wave’s HPV tests receive FDA approval, expected sometime in the first half of calendar 2009, we will be well-positioned to take these products quickly and effectively to market. We expect the integration process to be smooth and seamless,” Hologic CEO Jack Cumming said in a statement.

Erik Mellgren is a Swedish journalist who worked for Xconomy Boston in 2008 as part of the Stanford Innovation Journalism Fellowship program. His real job is with Ny Teknik, a leading technology and innovation magazine in Sweden, but he loved seeing the Red Sox at Fenway.