Goldman Sachs Comments On Healthcare Sector (HOLX, UTHR)

Hologic HOLX is well positioned to deliver upside to Street estimates owing to underappreciated upside from a pending product cycle in next generation digital mammography technology, known as tomosynthesis. Additionally, Goldman Sachs believes HOLX's strong FCF generation can support debt paydown and future tuck-in acquisitions that leverage the company's sizable sales channel into women's health. United Therapeutics UTHR is in the second year of two new US product launches, which we project will more than double the company's revenues by 2012 to $909mn. However, the key near term catalyst for shares is Phase 3 data in June and September for a new oral formulation of the company's franchise drug Remodulin. Goldman Sachs is more optimistic than the market that oral Remodulin will succeed in Phase 3 and it assigns a 75% probability of success. Goldman Sachs has a $25 PT and CL-Buy on HOLX Goldman Sachs has a $82 PT on UTHR HOLX closed Wednesday at $19.98 UTHR closed Wednesday at $68.15