A Diagnostics & Imaging Week

Financially beleaguered Fischer Imaging (Denver) reported a definitive agreement to sell its RE&S business, which includes EP/SPX, VersaRad and Bloom, to Byers Peak (Wheat Ridge, Colorado), a contract manufacturing specialist in electromechanical devices and sub-systems for the medical and technology markets.

Fischer signed the purchase agreement with Byers Peak Aug. 21. The assets to be sold are all of Fischer's right, title and interest in and to the VersaRad line, the EPX/SPX line and the Bloom line, including some related equipment, inventory (excluding Bloom finished goods inventory), general intangibles and intellectual property necessary to manufacture, market and repair the product lines.

Byers agreed to purchase the RE&S assets and assume service contract and warranty repair obligations for a minimum price of $260,000, to be paid over a period ending no later than one year from the date of closing of the transaction. Byers also agreed to pay Fischer up to another $80,000, depending on the number of Bloom units sold by Byers during the year after closing.

In order to avoid the expense and time delay involved in securing stockholder approval and in light of Fischer's deteriorating financial position, the company's board elected to file a petition for Chapter 11 bankruptcy.

"We plan to provide the latest imaging upgrades for all existing ISS, SPX and EPX systems, and offer complete ISS systems, including the carbon-fiber surgical imaging table along with an EP imaging system and Bloom stimulator," said Doug Pruett, vice president of Byers Peak. "Based on our core competencies, we see this opportunity as a logical progression for Byers Peak's long-range business strategy and believe we are capable of rejuvenating these products successfully."

Fischer Imaging services and manufactures medical imaging systems.

Elekta's (Stockholm, Sweden) acquisition of 80% of the equity of Beijing Medical Equipment Institute (BMEI; Changping, China), a provider of radiation therapy equipment, and the transformation of the company into a joint venture has been finalized, after a business license was granted by the Beijing Administration for Industry and Commerce.

On March 31, Elekta reported the signing of a contract to acquire the 80% holding in BMEI, contingent upon approval from the Chinese Ministry of Commerce and other closing conditions.

The agreement includes a future option for Elekta to call and the seller Beijing Pharmaceutical Group Co. Ltd. to put for the transferal of the remaining 20% equity of the j-v to Elekta.

BMEI is the largest domestic Chinese supplier of radiation therapy systems, with an installed base of around 260 units and a strong R&D focus.

Elekta said this strategic acquisition would "considerably strengthen" its position in the fast-growing Chinese market for radiation therapy solutions. It said BMEI brings the ability to fully meet the needs of the Chinese and other emerging markets for lower-cost radiation therapy solutions.

The company said the business combination would poise it to become a comprehensive provider of linear accelerators across the spectrum of performance specifications.

Management plans include that BMEI will within two years launch new and cost-effective radiation therapy equipment aimed for the domestic and international markets, complementing the existing Elekta portfolio.

Elekta provides clinical solutions, comprehensive information systems and services for improved cancer care and management of brain disorders. All of its solutions – including Leksell Gamma Knife for non-invasive treatment of brain disorders and Elekta Synergy for image-guided radiation therapy – employ non-invasive or minimally invasive techniques.

Following the acquisition of Impac Medical Systems in April 2005, the Elekta Group is the world's largest supplier of oncology software. Its systems and solutions are used at more than 3,000 hospitals around the world to treat cancer and manage clinical operations, as well as to diagnose and treat brain disorders, including tumors, vascular malformations and functional disorders.

• Thermo Electron (Waltham, Massachusetts) and Fisher Scientific International (Hampton, New Hampshire) said they have received a request for additional information from the Federal Trade Commission in connection with the pending $10.6 billion merger of the companies. The second request is limited to information concerning a single, minor product line, the companies said.

Thermo and Fisher said they expect to resolve issues raised by the second request by agreeing to divest a $17 million Fisher product line.

They expect to obtain termination of the Hart-Scott-Rodino Antitrust Improvements Act waiting period in October. Thermo and Fisher said they are working cooperatively with the staff of the European Commission in connection with that body's review of the proposed merger. They continue to expect the transaction will close in 4Q06, following regulatory and shareholder approvals.

Thermo Electron is a leader in analytical instruments.

Fisher Scientific is a provider of products and services to the scientific community. It supplies researchers and clinicians in labs around the world, serving pharmaceutical and biotech companies; colleges and universities; medical-research institutions; hospitals; reference, quality-control, process-control and R&D labs in various industries; as well as government agencies. The company provides more than 600,000 products and services, from biochemicals, cell-culture media and proprietary RNAi technology to rapid diagnostic tests, safety products and other consumables.