Marketer of aesthetic treatment systems, Cynosure, Inc. CYNO, announced that it has entered into a definitive agreement with Hologic, Inc. HOLX. Per the agreement, Hologic would acquire all outstanding Cynosure shares for $66.00 per share in cash, which corresponds to an equity value of approximately $1.65 billion.
Shares of Cynosure have been treading higher over the past one month. Also, during the same period, the stock returned 49.55% compared with the Zacks Medical Instrument’s meager gain of only 2.06%. However, the company has an unfavorable estimate revision trend for the current fiscal with four estimates moving downward in the last 60 days compared with no estimate moving in the opposite direction. The current-year estimate accordingly has slipped 10 cents over the past couple of months, pointing to woes ahead.
Coming back to the news, Cynosure’s shareholders would have an option to dispose of their holdings through a tender offer from Hologic. The tender offer is expected to be completed in late March or April of 2017. Following the completion of the transaction, Cynosure shares will be delisted from the NASDAQ.
Cynosure develops, manufactures and markets aesthetic treatment systems. The systems aid plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures. The company also markets radiofrequency energy-sourced medical devices for precision surgical applications.
The company sells its products globally under the Cynosure, Palomar, ConBio and Ellman brand names through a direct sales force in the U.S., Canada, France, Morocco, Germany, Spain, the United Kingdom, Australia, China, Japan and Korea. It also sells its products through international distributors in approximately 120 other countries.
Zacks Rank and Key Picks
Currently, Cynosure has a Zacks Rank #4 (Sell).
Some better-ranked medical stocks are Glaukos Corporation GKOS and Neogen Corp. NEOG. Glaukos sports a Zacks Rank #1 (Strong Buy) while Neogen carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos gained over 100% in the last one year in comparison to the S&P 500’s gain of 23.9%. The company has a stellar four-quarter average earnings surprise of over 100%.
Neogen gained 32.3% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth rate of 16.7% for the next five years compared to the industry average of 15.2%.
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