A Medical Device Daily
Siemens (Munich) reported that it has formed a new division called Siemens Medical Solutions Molecular Imaging, which combines its nuclear medicine operations with the recently acquired CTI Molecular Imaging (Knoxville, Tennessee), a provider of positron emission technology (PET) imaging equipment and services, and now a wholly owned subsidiary of Siemens Medical Solutions (Malvern, Pennsylvania).
This news comes after the May 4 expiration of Siemens’ tender offer to acquire all of the issued and outstanding shares of CTI stock at $20.50 a share. The transaction, first disclosed in March, has a total value of about $1 billion (Medical Device Daily, March, 21, 2005).
With this completed acquisition and the formation of a division focused on PET and single photon emission computed tomography (SPECT)-based molecular imaging technologies, Siemens said it “continues and strengthens its commitment to molecular imaging development, technological innovation and the creation of dynamic new technologies that will revolutionize the diagnosis and treatment of disease.”
This includes the development and distribution of molecular biomarkers, preclinical imaging for research and pharmaceuticals and application and post-processing for molecular imaging.
“By strengthening our leadership position in identifying disease earlier at the molecular level, we continue to transform the delivery of healthcare by improving patient care while reducing costs,” said Erich Reinhardt, PhD, president and CEO, Siemens Medical.
Leading Siemens Medical Solutions Molecular Imaging is Michael Reitermann, who was president of the former Siemens Nuclear Medicine division. Ronald Nutt, PhD, founder and former president and CEO of CTI, is the chief scientific advisor of the new Siemens division.
“Siemens and CTI have had a long-standing partnership through our joint venture, CTI PET Systems, so joining together to form Siemens Medical Solutions Molecular Imaging is a natural progression in our relationship,” Nutt said.
The companies said that they believe the emergence of molecular imaging may influence a shift in healthcare from “sickness repair” to a focus on maintaining wellness. To achieve this, they said a comprehensive set of diagnostic tools that includes molecular imaging techniques, such as PET, is required for pre-symptomatic/early disease detection.
In other dealmaking activity, Regaltech (Tarpon Springs, Florida), a holding company focused on stem cell research and development, said that it is “exploring” various acquisition opportunities to further fuel its growth and development.
“We are just starting to scratch the surface of potential applications of stem cell technology,” said Preston Valentine, president of Regaltech, “and we strongly feel that no other industry provides the unique investment opportunity poised by ongoing research and development in this area. . . . [O]ur company is dedicated to trying to achieve a leadership position in the development and exploitation of this amazing new technology.”
Regaltech is publicly traded under the ticker symbol RGTH.