1. In Vivo
  2. >>Business Strategy

Unsurprisingly, Cytyc Buys Digene

As a small company with a strong presence in its niche, Cytyc receives a high multiple for its revenues, which gives it the equity for M&A. And both it and Digene, another player in cervical cancer screening, knew they could realize strategic synergies by combining and leveraging product offerings and marketing and distribution channels. But whether or not Cytyc succeeds in driving the growth of Digene's test for HPV, the cause of cervical cancer, and uses Digene's Hybrid Capture platform technology to enable a broader play in women's health, Cytyc is demonstrating an ability to craft potentially transforming deals-the kind a larger diagnostics or medical device company can't easily make by acquiring line extensions in niche markets.

In many respects, Cytyc Corp. 's recently announced $553 million deal for Digene Corp. [See Deal] was a no-brainer, and expected. The companies have each developed a platform for cervical cancer screening—Cytyc with its ThinPrep liquid-based, automated Pap smear slide preparation system and Digene with its molecular test for human papilloma virus (HPV), now understood to cause cervical cancer in better than 99% of cases. The two have been working together for five years, when Digene began to test ThinPrep in conjunction with its HPV test. A year ago they inked a co-promotion agreement [See Deal]. Separately and together, their principal corporate objective has been trying to solidify their respective positions in cervical cancer, and more broadly, women's health testing.

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on In Vivo for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required
Start Free Trial

Already a subscriber?

More from Business Strategy

More from In Vivo

Rising Leaders 2025: Partnerships Propel Crystal Qin’s LaNova To Record-Breaking Merck Deal

 
• By Brian Yang

Crystal Qin has led LaNova Medicines’ swift rise in the biotech world through strategic partnerships and innovative R&D, highlighted by a record deal with big pharma.

Rising Leaders 2025: Amir Hefni Puts Optimism Into Action At Resolution Therapeutics

 
• By Jo Shorthouse

In Vivo Rising Leader Amir Hefni, CEO of Resolution Therapeutics, discusses the company's advancements in macrophage cell therapies for inflammatory and fibrotic diseases, and his transition from big pharma to biotech leadership.

In Vivo’s 2025 Rising Leaders

 
• By Jo Shorthouse

The sixth annual edition of In Vivo’s Rising Leaders features entrepreneurs, academics, lawyers, regulators and innovators from around the globe, representing the forefront of creativity in health care.