Shares of Hologic Rise After Chairman Leaves; Analyst Lifts Estimates

Shares of medical technology company Hologic Inc. rose after the its chairman resigned in a move that analysts say advances Hologic’s integration with Cytyc Corp.

Chairman Patrick Sullivan resigned Tuesday, and will be replaced by Chief Executive Jack Cumming. Sullivan was the president, chairman and CEO of Cytyc, a medical device maker Hologic bought last year.

Canaccord Adams analyst Matthew Scalo said the move shows Hologic has finished integrating Cytyc Corp., which it bought last year in a $6.2 billion cash-and-stock deal. Bruce Jackson of RBC Capital Markets said Sullivan’s departure gives more freedom to the remaining management of the combined company.

Hologic stock rose 31 cents Wednesday, or 1.4 percent, to $22.40.

Separately, Leerink Swann & Co. analyst Isaac Ro raised his fiscal 2009 profit and revenue estimates for Hologic, based on the expectation that medical tests using Hologic’s NovaSure will increase. He said Novasure is used in more than 70 percent of endometrial ablation procedures, and he expects it to keep that market share for the next year.

Endometrial ablations are procedures in which part of the uterine lining is destroyed to control heavy bleeding. The procedure is considered an alternative to having a hysterectomy.

Ro thinks the company will earn $1.41 per share in the year ending September 2009, on $1.86 billion in revenue. On average, Thomson Financial reports that analysts expect a profit of $1.41 per share on $1.92 billion in revenue.