Core Viewpoint - Hologic's stock price increased by 7.6% following reports of renewed interest from Blackstone Inc. and TPG in acquiring the medical device company [2] Company Summary - Blackstone Inc. and TPG have resumed discussions with Hologic's board regarding a potential takeover [2]

Mergers and Acquisitions - Blackstone and TPG have renewed their interest in acquiring medical device maker Hologic [1]

Core Insights - Hologic's latest quarterly results indicate progress, particularly in the Breast Health business, which is expected to return to healthy growth by the end of fiscal 2025 [1][9] - The company anticipates mid-single-digit revenue growth and high single-digit EPS growth in the fourth quarter, moving towards long-term financial goals [1] Breast Health Segment - The Breast Health segment's revenues improved sequentially in Q3 and slightly exceeded expectations, with a new leadership team and revamped sales strategy in place [5][9] - A new strategy to upgrade older gantries is expected to gain traction, reinforcing Hologic's market leadership [6] - The introduction of Genius AI Detection PRO enhances diagnostic accuracy and reduces radiologists' reading time by up to 24% [7] Interventional Breast Health - The acquisition of Endomagnetics has strengthened Hologic's interventional breast health portfolio, contributing to a 31.8% growth in the fiscal third quarter [8] Diagnostics Segment - The Panther platform's utilization is increasing, with significant potential in the U.S. vaginitis market and strong uptake of respiratory assays due to a severe flu season [10] - Plans to diversify the Fusion menu with IVD tests for gastrointestinal and hospital-acquired infections are underway [11] GYN Surgical Segment - International markets are driving momentum in GYN Surgical, with investments expanding access to minimally invasive surgical products [12] Valuation - Hologic shares are considered undervalued, trading at a forward five-year P/E of 14.41X compared to the industry average of 27.51X [13] Challenges - The Diagnostics business faces challenges outside the U.S., particularly in China, where revenue forecasts have been lowered by $20 million [16] - Tariff implications are a concern, with anticipated direct costs of $10 million-$12 million per quarter starting fiscal 2026 [17]

Group 1: Investment Performance - Sound Shore Management's Investor Class (SSHFX) and Institutional Class (SSHVX) delivered returns of 3.06% and 3.10% respectively in Q2 2025, underperforming the Russell 1000 Value Index at 3.79% and the S&P 500 at 10.94% [1] - The fund's 35-year annualized returns were 14.92% for SSHFX and 15.14% for SSHVX as of June 30, 2025, surpassing the Russell Value's 12.76% but trailing the S&P 500's 19.71% [1] Group 2: Hologic, Inc. Overview - Hologic, Inc. (NASDAQ:HOLX) is a medical instruments and supplies company focused on women's health, with a market capitalization of $14.57 billion and a share price of $65.50 as of September 10, 2025 [2] - The stock experienced a one-month return of -3.75% and a 52-week decline of 18.55% [2] Group 3: Regulatory Environment and Investment Strategy - Uncertainty regarding regulatory policies, including Medicaid reimbursement and pharmaceutical pricing, has negatively impacted healthcare holdings, including Hologic, Inc. [3] - Sound Shore Management took advantage of price dislocation during market drops to increase its position in Hologic, Inc., which is valued at around 14 times earnings [3] Group 4: Hedge Fund Interest and Financial Performance - Hologic, Inc. was held by 47 hedge fund portfolios at the end of Q2 2025, an increase from 46 in the previous quarter [4] - The company reported revenue of $1.024 billion in fiscal Q3 2025, exceeding guidance [4]

Key Takeaways Hologic raised its 2025 guidance midpoints after a strong Q3 and easing tariff headwinds.Hologic's Breast Health sales topped forecasts, with new leadership and innovation driving momentum.Hologic's GYN Surgical surged internationally, up 24.8% in Q3, with strong growth expected in Q4.On its July 2025 earnings call, Hologic (HOLX) said that it is well on track with the financial improvement plan laid out earlier this year. The company raised the midpoints of its fiscal 2025 guidance ranges, wi ...

PresentationKallum TitchmarshEquity Analyst Okay. Thank you, everyone. I think we can get started. Kallum Titchmarsh here from the Life Sciences team at Morgan Stanley. Really pleased today to be joined by the team from Hologic. We have Steve MacMillan, Chair, President and CEO; and we have Mike Watts, Corporate VP, Investor Relations. Before we get started, I've been told by the guy at the back that I have to read out these disclosures and they get angry at me. So for important disclosures, please see the ...

PresentationKallum TitchmarshEquity Analyst Okay. Thank you, everyone. I think we can get started. Kallum Titchmarsh here from the Life Sciences team at Morgan Stanley. Really pleased today to be joined by the team from Hologic. We have Steve MacMillan, Chair, President and CEO; and we have Mike Watts, Corporate VP, Investor Relations. Before we get started, I've been told by the guy at the back that I have to read out these disclosures and they get angry at me. So for important disclosures, please see the ...

Hologic (NasdaqGS:HOLX) FY Conference September 09, 2025 10:45 AM ET Company ParticipantsMichael Watts - Corporate VP & IRConference Call ParticipantsKallum Titchmarsh - VP & Equity AnalystKallum TitchmarshOkay. Thank you, everyone. I think we can get started. Callum Tishmarsh here from the Life Sciences team at Morgan Stanley. Really pleased today to be joined by the team from Hologic. We have Steve MacMillan, Chair, President, and CEO, and we have Michael Watts, Corporate Vice President and Investor Relat ...

Core Insights - Hologic's Panther platform is central to its molecular diagnostics business, with significant growth driven by the Panther Fusion module and increased adoption during the pandemic [1][8] - The BV, CV/TV assay has become Hologic's second-largest globally, highlighting the potential for growth in the U.S. market where testing rates remain low [2][8] - The company plans to expand its assay menu on the Panther Fusion platform, targeting gastrointestinal infections and hospital-acquired infections as future growth areas [3][4] Company Performance - Hologic's stock has increased by 6.7% over the past six months, contrasting with an 11.2% decline in the industry [7] - The company is currently trading at a forward five-year price-to-earnings ratio of 14.84X, which is below the industry average of 28.05X, indicating potential value [9] Market Opportunities - There are over 20 million U.S. women experiencing vaginitis annually, with less than 40% tested, presenting a significant market opportunity for Hologic [2] - Approximately one-third of Hologic's customers currently utilize the Fusion capability, suggesting substantial room for expansion in the future [4][8]

Core Insights - Hologic and Boston Scientific are prominent U.S. MedTech companies, with Hologic focusing on women's health and Boston Scientific on less-invasive medical devices [1][8] - Hologic's market cap is $14.94 billion, while Boston Scientific's is significantly larger at $155.90 billion [1] Hologic Overview - Hologic's fiscal 2025 third-quarter performance indicates recovery and growth, aided by a new leadership team and strategy in Breast Health [3] - The company is launching innovative products like Genius AI Detection PRO and the Envision mammography platform [3] - U.S. Molecular Diagnostics grew 7.3% year-over-year, driven by specific assay portfolios [4] - The Genius Digital Diagnostics System is gaining traction globally, addressing labor shortages in cervical cancer screening [5] - Hologic's strong balance sheet supports capital allocation strategies, including share repurchases and M&A activities [6] - The company has reduced anticipated tariff impacts for fiscal 2026, but still faces macroeconomic challenges [7] Boston Scientific Overview - Boston Scientific's Cardiovascular segment showed strong performance, with Electrophysiology sales increasing by 91% in Q2 2025 [8][9] - The company is focusing on strategic M&A and high-growth areas, acquiring SoniVie and Intera Oncology [10] - Emerging markets delivered 12.1% year-over-year operational sales growth despite geopolitical challenges [10] - The MedSurg segment, particularly Endoscopy, showed strength with notable growth in key products [11] - Urology sales grew 28% operationally, supported by acquisitions and product innovations [12] - Boston Scientific has cut its 2025 tariff impact forecast to approximately $100 million [13] Financial Performance and Valuation - Year-to-date, Hologic shares have decreased by 5.4%, while Boston Scientific shares have increased by 18.8% [16] - Hologic's forward price-to-sales ratio is 3.58, slightly above its median, while Boston Scientific's is 4.14, below its median [17] - Hologic's EPS for fiscal 2025 is estimated to grow by 3.7% to $4.23, while Boston Scientific's EPS is projected to improve by 18.7% to $2.98 [19][21] Conclusion - Boston Scientific shows strong momentum in its segments and favorable earnings projections, making it a more compelling investment opportunity compared to Hologic, which is also on a growth trajectory but faces economic headwinds [22]