Hologic, Inc. (NASDAQ:HOLX) Q1 2023 Earnings Call Transcript

Stephen MacMillan: We’re always looking — at the end of the day, we’re thinking about the long term top and bottom line growth. We’re very focused on ROIC, a key part of our senior leadership team comp is tied on ROIC, so we look at it on every deal. And we’ve watched a whole bunch of things that even if come down 80% or 90% and some of them we still don’t necessarily like. So again, I think we’ve got the luxury of time on our side given the strength of underlying business and the strength of our balance sheet, which gives us the chance to be relatively picky around what might be out there.

Operator: And we have a question from Navann Ty with BNP Paribas Exane.

Navann Ty: Hi. Thanks for taking my question. On women’s health, so I believe vaginitis drove Q1 growth ex-COVID. Should it continue to drive growth for the rest of the year? And longer term, could you discuss your women’s health focus being potentially a competitive advantage versus your non focused peers? Thank you.

Stephen MacMillan: Yes. I think we continue to see growth certainly in our women’s health assays that’s been — and it kind of got me to your second point of view. If you think about something like BB/CV/TV that we’ve launched, we discovered and realized about that because we’re so tapped into to the key opinion leaders and starting to realize that there are other tests that may be able to be developed that we can bring to the market to bring greater levels of certainty and specificity. And I think when we have that knowledge because we surround those customers, our focused approach certainly benefits as well and I think helps us on the innovation side, the same in 3D mammography and how that’s led to better biopsy stuff. And then the same in our surgical business where understanding fibroids better than anybody else and being able to innovate endometrial ablation.

So we kind of surround these, call them, large niches, but it’s really the insights that we have more with the KOLs that I think does provide us a level of competitive advantage. Thank you.

Navann Ty: Thanks. And staying at women’s health, you mentioned future portfolio expansion in Breast Health. So are you able to tell us more about any Breast Health innovation?

Stephen MacMillan: Any Breast Health innovation. I think the way to think about that is, we just continue to innovate. We’ve always been — we’ve brought enhanced detectors, enhanced workflow solutions and enhanced imaging along the way and we’ll continue that.

Karleen Oberton: Yes, I think we focus — one of the important focus on innovation is patient experience, focus on that as well as machine learning, what we can do to make radiologists more efficient and certainly that’s a big issue outside the U.S. where there’s much fewer radiologists.

Operator: Thank you. And this now concludes Hologic’s earnings conference call. Have a good evening.