Imatron and Picker International terminated their North American distribution agreement for Imatron's ultrafast computed tomography scanner last month.
The two medical imaging vendors parted ways after Imatron signed on Siemens in a collaborative effort to develop and market new CT systems based on Imatron's electron-beam scanning technology (SCAN 3/27/91). Picker sold the Imatron system under its own label as Fastrac.
"As you can tell from our financial results, we haven't been selling many machines. Part of that (sluggishness) stems from our disappointing relationship with Picker," said Rodney Derbyshire, Imatron president and CEO.
Imatron's revenue declined from $13.8 million in fiscal 1989 (end-December) to $9.7 million in 1990. The dedicated CT developer's losses nearly doubled from $4.2 million in 1989 to $7.6 million last year (see graph). The firm's backlog of ultrafast scanners increased to seven units at the end of 1990, from three units a year earlier.
Siemens will not sell the current Imatron system, although the agreement calls for the German vendor's distribution of products developed through the collaborative effort, Derbyshire said.
Imatron has reinstituted direct sales of the current CT product in North America, he said. The South San Francisco firm had sold the system in this market itself, before entering into a distribution agreement with Picker (SCAN 8/31/88).
Picker and Imatron discussed a possible joint venture to develop new CT products prior to the Siemens agreement, said Michael Peterson, manager of public relations for Picker. The OEM decided instead to invest in the internal development of its own CT products, he said.
Imatron received immediate financial relief from Siemens in the form of a $4 million up-front license fee, Derbyshire said. Siemens has also provided Imatron with a $4 million line of credit.
More importantly, however, collaboration with Siemens provides Imatron with a strong endorsement of its electron-beam CT technology from one of the world's largest medical imaging vendors. Future distribution by Siemens will provide a significant worldwide marketing boost for the smaller firm, Derbyshire said.
Imatron is hopeful that customer relations will improve as the firm reinstates direct sales of the current product. Although Picker will continue servicing installed Fastrac systems where hospital contracts are in force, Imatron would not object to taking over these service contracts, he said.
