EquityResearch29April2019COREBarclaysCapitalInc.and/oroneofitsaffiliatesdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.PLEASESEEANALYSTCERTIFICATION(S)ANDIMPORTANTDISCLOSURESBEGINNINGONPAGE68.Restricted-InternalU.S.LifeScienceTools&Diagnostics1H19OB/GYNSurveySays:VolumesPositive,FocusonDx&GYNSurgicalInApril2019,weperformedour5thbiannualsurveyof50OB/GYN’stogaugemarkettrendsforGYNSurgicalandDx(HCT,NIPT,andcarrierscreening).A)Volumetrends:Underlyingvolumetrendslookconsistentandpositive,withOB/GYNsexpectingvolumestoincreaseoverthenextyearacrossallareasincludedinoursurvey.Volumeexpectationsskewedpositivelyforallofthetestingcategoriesincludedinoursurvey.Sentimentongrowthappearsmodestlybetterthanour2H18survey,butweakerthanourthreepriorsurveys.Amongstthecategories,NIPTpostedthestrongestresults–with58%ofphysiciansexpectingvolumegrowth,ofwhich16%expectsignificantgrowth(42%unchanged,0%decline).Carrierscreeningwasalsopositive,with32%ofphysiciansanticipatinggrowth,including10%forsignificantgrowth(68%unchanged).Together,thepositivemarketenvironmentisanencouragingread-throughformarketdynamicsforLabCorp,Quest,andatMyriad’srecentlyacquiredCounsylbusiness.MarketgrowthforHologic’sGYNSurgicalcategoriesalsoscreenedaspositive-with47%ofphysiciansexpectingvolumegrowthinendometrialablation(47%unchanged,7%decline)and41%expectinggrowthinpolypectomy/myomectomyprocedures(57%unchanged,2%decline).B)GYNSurgical:ForHologic,trendsintheGYNSurgicalcategoriesappearconsistentheadingintoFY2Q19earnings.NovaSuremarketsharelooksstableversusourpriorsurvey,andthesurgicaltoolcontinuestooutperformthecompetitionintermsofphysicianviewsonclinicaleffectiveness.Thatsaid,webelieveit’sprudenttomonitorcompetitivethreatsonthehorizongivenrecentsalesweakness.ForMyoSure,physicianadoptioncontinuestosteadily...
