Hologic riding out tough times, sees boost in disposable business

By Lisa Kerner

Charlotte, N.C., Sept. 15 - Hologic, Inc. chief financial officer Glenn Muir said he'll be happy to see 2009 - a challenging year - come to an end.

Muir was speaking at the 2009 Morgan Stanley Global Healthcare Unplugged Conference in New York on Tuesday.

"The economy and recession put a crimp on hospital buying patterns," said Muir, who noted that only 25% of his company's revenues come from hospital buying.

The remaining 75% comes from Hologic's disposable and services business, which grew in the company's fiscal year that ends in September.

Addressing a question about the economy, Muir admitted to having a fairly negative view.

"We don't have a crystal ball into the future," Muir said.

However, Hologic is prepared to ride out the current environment in case the economy doesn't bounce back in 2010, according to Muir.

When asked about health care reform, Muir said Hologic is concerned about reimbursements, but the company is "trying to lay low at the moment" and not drive the debate.

Muir was asked about the company's merger-and-acquisition plans. He said there is no mandate for Hologic to buy additional companies.

What tends to happen, said Muir, is that Hologic will end up buying a product, technology or company as the result of a partnership.

A bolt-on acquisition can't be ruled out in the next few years, especially as Hologic continues to expand its distribution in women's health, Muir said.

Hologic is being prudent, building cash reserves and was able to pay back $300 million of a $540 million term loan from July 2008.

Based in Bedford, Mass., Hologic develops, manufactures and supplies diagnostics, medical imaging systems and surgical products.

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