R2 Technology sees IPO in future

Mammography computer-aided detection firm R2 Technology took another step toward going public last month when it presented its lead product and its business plan to the investment community. Appearing at the Hambrecht & Quist Health Care Conference in San Francisco, the company highlighted ImageChecker M1000, its mammography CAD workstation.

R2 of Los Altos, CA, is operating with venture capital backing, but the company sees an initial public offering in its future, according to James Pell, president and CEO. A tight stock market isn't always receptive to early-stage IPOs, however, so R2 plans to demonstrate a strong sales record with ImageChecker before pursuing an offering, Pell said. As such, the company has yet to file documents with the Securities and Exchange Commission.

The company considered taking the public plunge in 1996, but decided against the move when the market took a downturn. Now R2 may have a stronger position: In April, it signed an exclusive agreement with GE Medical Systems that will allow GEMS to package ImageChecker with its full-field digital mammography system (SCAN 4/29/98).

In July, R2 received clearance for ImageChecker for use with digitized mammography films (SCAN 7/22/98). Outside the U.S., R2 has sold two ImageChecker units and has placed roughly nine more in pilot screening programs. Since receiving FDA clearance, the company has sold about 16 ImageCheckers in the U.S. ImageChecker lists for approximately $180,000.