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Hologic Terminating Wisconsin Workers in MDx Relocation; Discloses Gen-Probe Revenue Contributions in Q1

NEW YORK (GenomeWeb News) – Hologic is terminating the majority of employees in its Wisconsin molecular diagnostics operations as it consolidates that business into the San Diego facility of recently acquired Gen-Probe, it disclosed in its Form 10-Q on Thursday.

The company also said that Gen-Probe contributed more than $140 million in product sales during its fiscal first quarter.

In the document filed with the US Securities and Exchange Commission, Hologic said that it is in the process of consolidating its MDx business with the Gen-Probe business, which Hologic acquired during the summer for $3.8 billion. The transfer of the MDx business, which had been in Madison, Wis., to San Diego is anticipated to be completed by the end of calendar year 2014. In the meantime, "the majority of employees in Madison will be terminated in fiscal 2013 and 2014," Hologic said.

It estimated it will take severance and benefits charges totaling $6.4 million, "which will be recorded ratably over the estimated service period of the affected companies." Hologic added that it took a charge of $1.0 million in the first quarter of fiscal 2013, ended Dec. 29, 2012, and $900,000 in the fourth quarter of fiscal 2012, ended Sept. 29, 2012, related to the winding down of the Madison operation.

The Madison location was the headquarters for Third Wave Technologies, which Hologic bought in 2008.

Bedford, Mass.-based Hologic did not say in its SEC filing how many employees would be laid off as a result of the move to San Diego, but in August, it informed the state of Wisconsin that it was closing its manufacturing plant in Madison and eliminating 130 jobs.

Also, Hologic disclosed that in the first quarter of Fiscal Year 2013, the Gen-Probe business contributed $140.4 million in product sales. In total, the diagnostics business, of which Gen-Probe is part, recorded $305.9 million revenues for the quarter, Hologic said earlier this week.

In the year-ago period — before it was acquired by Hologic — Gen-Probe recorded $155.2 million in product revenues and $158.2 million in total revenues.

Hologic's shares were up 1 percent at $22.19 in Friday morning trade on the Nasdaq.

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