Merger could establish new gamma camera vendor

Medasys, a nuclear medicine computer manufacturer, and EncoreMedical Systems, a gamma camera refurbisher and reseller, haveagreed to merge. While details of the merger remain to be workedout and shareholder approval is required for both companies, executiveseagerly envision that the merger will create opportunities forboth sides.

The two businesses are complementary in nature, said WilliamE. Bach, president of the Palatine, IL-based Encore. He is confidentthat the logic behind the letter of intent to merge will leadto quick finalization of the deal, perhaps within a month.

"Our focus is on the front end, working on stands anddetectors; their focus is on computers, computer control and softwareprocessing--so it is a good match," Bach said.

Encore, which buys, rebuilds and resells primarily Siemensand GE equipment, will have direct access to computer systemsneeded to refurbish the gamma cameras. Ann Arbor, MI-based Medasyswill have a new way of marketing its computer systems and software.

The two companies also plan to leverage Encore's expertisein gamma camera detectors, electronics and mechanics and Medasys'products for the acquisition, processing and storage of nuclearimages to develop a new--not refurbished--integrated gamma cameraand computer system.

The merged companies would have the advantage of being ableto incorporate an extensive library of tested nuclear medicinesoftware owned by Medasys into the new system.

"The project (to develop the new system) is already underway, and we would expect to be able to make our first shipmentsby next winter or early spring," Bach reported at the Societyof Nuclear Medicine meeting last week in Toronto.

The system is being designed to do single-photon emission computedtomography (SPECT) studies, he said. No other product detailsare available.

The merged firm composed of Medasys and Encore is projectedto realize more than $12 million in sales during fiscal 1993,according to estimates released by the two companies. The saleof an integrated nuclear medicine scanner could boost revenuesin 1994.