A Diagnostics & Imaging Week

Volcano (Rancho Cordova, California) reported that it is collaborating with MediGuide (Haifa, Israel) a privately held company developing advanced imaging and navigational technologies for use in cardiovascular and endovascular applications. The companies said that the initial focus of the alliance will be on interventional cardiology.

The parties are negotiating an agreement that will include a collaboration development agreement and non-exclusive global distribution rights. No financial terms were disclosed.

Volcano and MediGuide said they initially plan to develop Guided IVUS (GIVUS), a product which will integrate MediGuide's Medical Positioning System (MPS) with Volcano's intravascular ultrasound (IVUS) system. This combination of technologies will expand the 2-D aspect of the existing IVUS image into a 3-D image designed to provide more useful clinical information, allow for easier interpretation of the image by interventional cardiologists and improve the clinical utility of the image.

MediGuide's MPS system enables the real-time tracking of miniature sensors integrated into therapeutic and diagnostic medical devices. These MPS-ready devices will enable physicians to track real time progression of the devices as they are manipulated through the anatomy while continuously registering their exact location and orientation utilizing advanced diagnostic systems such as Volcano's IVUS system. This enhanced imaging capability will help physicians to assess the condition of the artery and treatment options while reducing exposure to X-radiation and usage of dye.

In addition to opportunities in interventional cardiology interventions, the alliance will explore opportunities to develop "MPS-ready" devices for imaging in the heart in conjunction with delivery of percutaneous structural heart therapies.

"When combined with Volcano's integrated IVUS consoles, advanced catheter designs, and software technologies such as VH IVUS, MPS is expected to both enable and enhance these less-invasive therapies by providing better information and precision," said Scott Huennekens, president/CEO of Volcano.

Martin Leon, MD, chairman of the Cardiovascular Research Foundation and Associate Director of the Center for Interventional Vascular Therapy (CIVT) at Columbia University Medical Center (New York), said, "With the availability of drug-eluting stents, we are performing increasingly complex interventions, and with this added complexity comes the need for more and better information on the location and morphology of lesions."

Volcano's IVUS product line includes ultrasound consoles that can be integrated directly into virtually any modern cath lab and single-use phased array and rotational IVUS imaging catheters. MediGuide develops tracking and imaging technologies for use in minimally-invasive surgical procedures. Its Medical Positioning System enables real-time tracking of therapeutic and diagnostic medical devices such as catheters and stents equipped with miniature MPS sensors.

In other dealmaking activity: Primedex Health Systems (Los Angeles), a leader in California in providing diagnostic imaging services through a network of owned and operated outpatient imaging centers, reported that its S-4 registration statement has been declared effective and is being mailed to stockholders of record as of Oct. 6.

The company has called a special meeting of stockholders on Nov. 15 to discuss the stockholder approval of the proposal to acquire Radiologix (Dallas), the owner and operator of 69 outpatient imaging centers in California, Maryland, New York and other states in a cash/stock deal of about $208 million.

Other subjects at meeting will include the proposed change of the company's name to Radnet and various other matters related to the acquisition of Radiologix.

The company said it intends to close the acquisition of Radiologix on Nov. 15.