Cramer’s been talking up Hologic for some time, especially since the merger with Cytyc. But to find out if the company’s success would continue, he brought CEO Jack Cumming on the show.
Hologic owns close to 60% of U.S. market share in digital mammography, Cumming said, and the States are the biggest market for that business. The company’s closest competitor is way behind with 30%, the CEO pointed out – even though Hologic entered the market two years after its rivals.
Despite a recent report that claimed growth in digital mammography was all but gone, Cumming is bullish on his company’s future.
“Everything is going digital,” he said. Over the next three to five years Cumming predicts 70% to 80% of the 14,000 systems in use will be.
And Hologic just logged its biggest ever quarter for international business, so the company is growing overseas as well.
Another factor, Cumming said, is that digital mammography is expected to go 3-D by 2010, sparking new sales for the company. By that time, the machines Hologic sold in 2003 will be ready for replacement, meaning yet another revenue stream.
All this and the integration of Cytyc with Hologic is making “exceptional strides” in its first 90 days, Cumming said, as sales teams across the globe cross-train to best market the newly merged companies' products.
Cramer’s call: “Hologic’s going higher.”
Jim’s charitable trust owns Hologic.
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