TriPath Imaging Finds a Friend

Near-term, the clear winner in the automated cytology screening wars is Cytyc Corp. , which has blown away the market with its focused development effort and stellar sales and marketing performance. But TriPath Imaging Inc. , after stumbling a bit, is getting some financial help from a powerful ally—Roche . Roche has agreed to invest more than $40 million in TriPath, buying five million shares. Including the three million shares it already owns, Roche will have a 24% stake in the company. Ultimately, if it exercises additional options, it will own 34%.

TriPath will gain about $43 million in cash from the initial transaction, which it will use to expand its sales...