HOLOGICThe Women’s Health Company

Bone Densitometry&

MammographyAt Hologic, “we are inspired by the people we serve:

The courage of women, the compassion of caregivers, and the faith of families”.

Hologic IncFounded in 1985, Hologic is a diversified medical technologies company that develops, manufactures, and distributes diagnostic and medical imaging systems for women’s healthcare.

Hologic provides a comprehensive suite of technologies with products for mammography and breast biopsy, breast Magnetic Resonance Imaging, radiation treatment for early-stage breast cancer, cervical cancer screening, treatment for menorrhagia and uterine fibroids, permanent contraception, osteoporosis assessment, preterm birth risk assessment, mini C-arm for extremity imaging and molecular diagnostic products including HPV and reagents for a variety of DNA and RNA analysis applications.

Headquartered in Bedford, Massachusetts, Hologic employs more than 4,200 employees worldwide.

In 2011 Hologic celebrates 26 years of focusing on women’s health and 21 years as a public company.

“We are on a mission to help women everywhere lead longer, healthier lives. It is our reason for being and the single focus of every breakthrough we pursue, every investment we make”.

Hologic operates its business under four reporting segments: Breast Health – produces a portfolio of breast imaging and related products and accessories, including digital and film-based mammography systems (the Selenia full-field digital mammogra-phy (FFDM) and Dimensions breast tomosynthesis systems), MRI breast coils, CAD for mammography and MRI, breast biopsy guidance systems, minimally-invasive breast biopsy devices, breast biopsy site markers, breast imaging comfort pads and breast brachytherapy products.

Diagnostics – includes the Thin Prep System, whichis primarily used in cytology applications, such as cervical cancer screening, theFetal Fibronectin Test, which offers clinical benefits for the assessment of the risk of pre-term birth, and molecular diagnos-tic reagents used for a variety of DNA and RNA analysis applications based on Hologic’s Invador chemistry.

GYN Surgical – manufactures the NovaSure endo-metrial ablation system, which enables physicians to treat women suffering from excessive menstrual bleeding in a minimally-invasive manner, and the Adiana permanent contraception system, which is intended as an alternative to tubal ligation.

Skeletal Health – includes QDR X-ray bone densi-tometers, the Sahara ultrasound-based osteoporosis assessment product and Fluoroscan mini C-arm imaging products.

Better Images Better Care

The latest news

On April 30, 2012, Hologic announced that it would acquire Gen-Probe, the diagnostic tests maker, in a $3.75bn cash deal. It will give the company a stronger presence in blood screening and women’s health. Also, this is the third acquisition to the company since 2011. Hologic is securing its market position quite fast and steadfastly.

Hologic started the first time with the introduction of its products to health institutions and build its brand.

Relying on a superior image quality, the strategy ofHologic changed from a sales dealer to an aggressive internal sales force that effectively took market share from competitors.

By constantly engaging customers as equal partners, and implementing their requests for organizational decision making, Hologic created a better product and built customer’s loyalty.

Understanding the need of the customers, the company maintains control over the sales force to assure a proper flow of information from the company to the market and from the market to the company.

Full of resources, Hologic aims to provide saturation coverage of the market by using all available outlets.Products and customers focused, Hologic tries to bring a mix of users which represent many dif-ferent markets, such as big hospitals, small facilities, and private practice offices.

As a medical equipment maker, Hologic leads the market by its three main products: mammography, bone densitometry system and permanent con-traception device. All of them are woman-related healthcare instruments.

Hologic’s most preeminent and latest product is Digital Tomosynthesis. The device can create a 3-dimensional picture of the breast using X-rays. It is significant because it is able to clearly identify lesions they may not have been able to see before.

Market strategy for Hologic Digital Mammography

Hologic uses specific websites to conduct customers & patients to “the world with Hologic” directly. The websites’ purpose is not pushing the products to patients but trying to give them tips for their ailments, and giving them quick diagnosis as well. It also makes surveys and provides rewards for participators to collect primary information.

Hospitals and other health-related institutions need to introduce a certain amount of diagnostic instru-ments, medical staff prefer to use easy-to-operate machines. Hologic tries to precisely fill their needs; it minimalizes the intricacy of the equipment and pro-vides instructors to explain how to use the instru-ments for medical operators.

The company is using iSTORE, an online retail shop held by the company, to address to customers. If customers already know the products, they can skip those onerous parts of purchasing and simply order via the website.

Hologic is the market leader in a lot of areas. Those are mammography and breast biopsy, breast mag-netic resonance imaging, radiation treatment for early-stage breast cancer, cervical cancer screening, treatment for menorrhagia and uterine fibroids, per-manent contraception, osteoporosis assessment, pre-term birth risk assessment, mini C-arm for extremity imaging, and molecular diagnostic products including human papillomavirus (HPV) testing and reagents for a variety of DNA and RNA analysis applications.

Ostheoporosis assessment table

S.W.O.T

• Diversified segments and synergies between them

Since Hologic provides its products and services in multi-fields, it can apply the methods of cross-selling and up-selling. Cross-selling means if a client already owns Hologic’s mammography, for example, Hologic can suggest other equipment to the client such as the breast biopsy machine. If a client also has different seg-ments such as a general hospital, then Hologic can push its bone densitometry systems and breast scan systems simultaneously.

The merits to clients are: if they are using Hologic’s tools consistently, clients can obtain more accurate diagnostic results; and if they buy several instruments at once, they can apply to bulk-sale discount.

Up-selling means Hologic has an advantage to introduce its newer machines to clients. If clients already have analog mammography machines, why not suggest a newer one to them? The advantage is: since medical teams are getting used to Hologic’s devices, it is easier to adapt yet another one.

• Strong sales and distribution network

Hologic has its sales network among 123 countries worldwide. Especially in developed countries, such as Japan, the company has strong bonds with local distrib-uters and selling almost all products through different distributers.

• Major position in the market

Hologic has the predominant global market share of 52% in 2010, followed by GE Healthcare (27%) and Siemens Healthcare (10%). In the US, Hologic has even higher presence with a 70% market share

Strength

Weaknesses

• High operating expenses

Hologic faced several issues including the effect of the economic downturn and expenses for market expanding, delay of production schedules and research & development costs, Hologic experienced three-year continuous deficit during 2008-2010. Also, current con-secutive acquisitions are hitting the company’s budget severely.

• Patent infringement

Technological equipment always has patent infringe-ments. Hologic had several disputes in the last 3 years. With these plaintiffs, Conceptus, SenoRX, and Ethicon Endo-Surgery, Hologic paid vast amounts of remunera-tion for settlements. In the future, Hologic still has the risk of litigations.

• Too new to use its instruments

Although Hologic’s instruments are using advanced technologies and have better accuracy, the machines are intricate and unwieldy to use for some medical institu-tions. Because of its advancement, the machines have lack of integration with other diagnostic devices. The problem can cause workflow complications.

Opportunities

• Global healthcare reforms

Ongoing healthcare reforms among the US and the EU may help the growth of the healthcare equip-ment market. The governments are starting to cut their spending to subsidize medicines and special treatments, preventive medicine including mammography will be-come more and more important in the future. If people can find their lesion in the early stage,then none of them need to pay expensive medical fees.In the US, the Food and Drug Administration(FDA) approved that mammography manufacturers can pro-mote their equipment more widely. It also can be an opportunity to expand the market.

• Global awareness of breast cancer

Since 1991, the Susan G. Komen Foundation started to use pink ribbons as a symbol of campaign for enlightening breast cancer awareness to people. Since then, the ribbon has become the official symbol of National Breast Cancer Awareness Month every october. This campaign is still ongoing and expanding every year.

• Growth potentiality in emerging economies

The mammography market looks promising and it will reach over $1billion annual revenue in 2017. The main reason is market growth in emerging coun-tries, especially in Asia, can record more than 9.4% annual growth rate. The needs for replacing old ma-chines with modern equipment are also soaring in the developing countries.

Threats

• Highly competitive market

Since FDA’s approval allows manufacturers to pro-mote and provide their equipment with less regulation, the market will be more competitive. The loose regula-tions also enable new companies to enter the market.

• Fast technological evolutions

Because technological evolutions are too fast, even the latest mammographic products could tend to be obsolete within a couple years. This means manufac-turers only have short period for selling their newest products in cover price. Potential discount will hurt manufacturers’ profit gravely.

• Demands for secondhand, not new one

The increasing demand for pre-owned medical equipment will negatively affect sales of new mam-mography equipment. Since technological evolutions are so fast, there is no vital meaning for owning the latest models. Therefore, clients prefer cheaper models which are available at a discount of 30% to 50%. However, if no one purchases the new one, the manufacturers cannot recoup their R&D costs.

Analysis

Help every woman in the world, and lead her to longer and healthier life by Hologic’s health service.

Hologic is known for its Breast Tomosynthesis and being the first company that received FDA approval for 3D Breast Tomosynthesis.

People might think “Hologic provides services for women only”. However, their services are not just for women. Hologic also provides bone health service, which is for both elders and young people. In addition, they pro-vide not only breast health, bone health, prenatal health, and gynecologic health service to the patients but also the courses and case studies for training purpose.

ServicesBreast HealthBreast health covers digital mammography, screen-film mammography, breast ultrasound, and MRI solutions. With the most advanced digital mammography system in the industry, Hologic guarantees the most safety and highest quality treatment toward their clients. Detecting breast cancer is what Breast Tomosynthesis does and is also what Hologic professional at.

Skeletal HealthOsteoporosis is one kind of bone disease that can affect both woman and man. It makes one’s bone become weaker. According to Hologic’s promoting video, people don’t know Osteoporotic hip fractures can lead to dangerous medical complications. Most people don’t find out until too late. Fortunately, Osteoporosis can be treatment now. Hologic is promoting testing bone health. It is quick and painless. They also teach people how to prevent Osteoporosis by healthy diet, active living, and reduced smoking and alcohol.

Pre-natal HealthThe health of pregnant woman and her baby are important while pregnancy. Hologic provides a fetal fibronectin test, a test in assessing preterm birth risk, and lots of valuable informations to support and help pregnant women. Hologic also provides another test called InPlex® CF that can identify if a baby has genetic mutation or not.

Gyconologic HealthMany women have questions about cervical cancer screening or treating heavy menstrual bleeding. Hologic provides all kinds of technologies, products, and therapies on those areas in order to improve women’s lives and healthy. Hologic also provides treatments that can improve the people who still have chances to be recovered from diseases.

Hologic’s Mission

Hologic provides online and live training, BioMed training, and case study for people who want to improve their health or enhance their knowledge.

Live training-Hologic specialties give out actual speeches for teaching the knowledge of different topics.

Online training is for people who don’t have time to take actual course, which included lectures, web-baesd training modules, and procedural training videos.

BioMed training- Hologic offers customers lectures, labs and experiences with products and teaches customers how to use their products efficiently.

CompetitiveThe healthcare industry is characterized by continual change and improvements in technology.Many competitors offer a broader product portfolio, which this market attract hospitals, radiology clients, group purchasing organizations, laboratories, physicians and other potential customers.

Many of Hologic’s competitors are larger, have greater financial and technical resources, do extensive research, sales, marketing and manufacturing capabilities.

Hologic beleives on the success of itself depending on the ability to differentiate its products and to demon-strate that they deliver the attributes that are needed by customers. This includes, efficacy, ease of use, reliability, quality and cost. it also depends on investing in product enhancements and technologies that will help us distinguish Hologic from its competitors.

Hologic Products and related technologies compete with products offered by a number of competitors, including GE, Siemens, Philips, Planmed, Agfa, Carestream Health, Fuji, IMS Giotto, and Toshiba, Invivo, Devicor Medical Products, Becton, Dickinson & co, Roche Diagnostics Corp, Celera, Biosystems, Innogentics, Inc., Luminex Corp...etc

RegulatoryThe manufacture, sale, lease and service of medical diagnostic and surgical devices intended for commercial use are subject to extensive governmental regulation by the FDA in the United States and by a variety of regula-tory agencies in other countries. In addition to that laws relating to safe working conditions, manufacturing practices, environmental protection, fire hazard control and disposal of hazardous or potentially hazardous substances, among others.

Economic

• Macroeconomic uncertainty may affect Hologic business.

• guidelines, recommendations and studies published by various organizations can reduce the use of Hologic’s products.

• Changes in laws affecting the healthcare industry could affect the revenues and profitability.

• unanticipated delays in product’s development.• damage at manufacturing facilities.• Fluctuations in the exchange rates of European

currencies and the other foreign currencies.

Environmental forces

ThechnologicalHologic’s products have been characterized by rapid technological growth and changes. The success depends on the ability to enhance and develop the existing products, new products that meet increasing customer requirements and gain marketacceptance. If Hologic fails to enhance the products, and the related technologies, this may be rendered obsolete or uncompetitive by new industry standards or changing technology.

Distribution

Hologic sells it products and related technologies through a network of independent distributors and sales representatives, as well as a direct sales and ser-vice force in the U.S., Canada, Europe, the UK, Australia and in China, the Middle East, Africa, South Asia, Latin America, and Pacific Rim countries. Japan, South Korea, Thailand and Taiwan. Hologic also utilizes a network of third-party distributors in various foreign countries throughout the world.

“We believe that in order to effectively market our current products and any other new products and applications on a worldwide basis, we will need to continue to increase our international marketing, sales, and service capabilities.”

Revenue Growth of 2012

2nd quarter fiscal Mammography Gyn Surgical Diagnostic

32.5 M

13.6 M12.8 M

5.7 M

Social

Hologic might be affected by seasonality, changes in behavior since customer purchases of the GYN Surgical products have been historically less in the second fiscal quarter of the year as compared to other quarters. In addition, the summer months, which is during the fiscal fourth quarter, typically have had lower order rates internationally for most of the products.

“Hologic is currently the only provider of a molecular test for predicting the risk of preterm birth in the United States, and internationally.”

Executive Officers

Robert A. Cascella President & Chief Executive Officer

Jay A. Stein Co-founder, Chairman Emeritus, Senior Vice President & Chief Technical Officer

Glenn P. Muir Executive Vice President, Finance and Ad- ministration & Chief Financial Officer

David J. Brady Senior Vice President, Human Resources

Mark J. Casey Senior Vice President, General Counsel, & Secretary

David P. Harding Senior Vice President & General Manager, International

Peter K. Soltani Senior Vice President &General Manager, BreastHealth

Steven S. Williamson Senior Vice President & General Manager, GYN Surgical Products

Marketing Strategy, Distribution & Environmental Forces http://investors.hologic.com/annual-filings

Breast Health http://www.hologic.com/en/womens-health/ibs/video

Skeletal Health http://www.hologic.com/en/womens-health/bone-health

Prenatal Health http://www.hologic.com/en/womens-health/prenatal-health

Gynecological Health http://www.hologic.com/en/womens-health/gyn-health

Education http://www.hologic.com/en/product-support-link/biomed training

Digital Mammography http://www.prweb.com/releases/mammography_equipment/ digital_mammography/prweb8953891.htm

Positive report for global mammo market http://www.auntminnieeurope.com/index.aspx?sec=sup&sub =wom&pag=dis&ItemID=605950

Technique Driving the Digital Mammography Market http://healthsystemcio.com/2012/04/10/klas-new-technique- driving-the-digital-mammography-market/

Financial Times – Hologic http://markets.ft.com/Research/Markets/Tearsheets/ Summary?s=HOLX:NSQ

WWW.HOLOGIC.COM

Zii Wakiko

Nesrine Andy

MAN 105 Team

Work Cited

We agree with the Hologic’s Marketing strategy since:

• Its develops long term strategies and plans to drive growth in existing / new product areas.

• Conducts analysis to understand business performance and competitors

• Plans market research by supporting customer seg-mentation and product penetration

• Understands/tracks critical environmental forces• Identify new markets; product extensions that will

support continued business.• Partners with strong manufacturers for worldwide

distribution

Team Recommendation

However Hologic has weaknesses and threats as shown in SWOT analysis, so our recommendations are: • Cooperating with hospitals/medical institutions, by

landing or renting products and providing free lectures.• Geting new patients, by providing FREE physical

examination. Introducing the hospitals that Hologic has agreement with, patients can use these hospitals for examination. • Focusing on the 7P’s by having strong stories from

people, physical evidences with lab reports and press releases and the process based on diagnostic accuracy to smoothly keep the trust of customers/patients.

www.hologic.com