Fall in Covid 19 Testing Demand Shakes Hologic’s Stock Rating

The lack of semiconductor chips is negatively affecting Hologic and other manufacturers of medical equipment.

The performance of Hologic’s stock was downgraded by global financial services firm, BTIG, from “buy” to “neutral,” with broader economic dynamics also having an impact on other companies in the MedTech sector, for example, the ongoing supply chain issues and declining requests for Covid 19 testing.

Hologic’s primary concern now is the lack of supply, notably in the form of semiconductor chips, which is having a significant negative influence on their breast health business.

Ryan Zimmerman, an analyst at BTIG, commented that “In short, we expect continued disruption in Breast Health sales and limited upside to expectations as the supply environment has not materially improved.”

Even without the current supply issues, other contributing factors presenting problems include QC and processing which continue to put off the release of certain goods.

Hologic last quarter reported that revenue decreased by 6.6% to $1.44 billion from a year earlier, mostly because of a drop in COVID-19 testing sales.

In the most recent quarter, Hologic stated that revenues fell by 6.6% as a result of the drop in Covid 19 testing, now sitting at $1.44 billion.