ADAC brings PET to oncologists

May 24, 2000

ADAC Laboratories and American Diagnostic Medicine have signed an agreement with the International Oncology Network to offer PET imaging services to the network's 2000 oncologists. This agreement is an offshoot of the "First Nuclear" joint venture

ADAC Laboratories and American Diagnostic Medicine have signed an agreement with the International Oncology Network to offer PET imaging services to the network's 2000 oncologists. This agreement is an offshoot of the "First Nuclear" joint venture between ADAC and ADM.

Any International Oncology Network member can sign up for the First Nuclear program. ADAC will provide the PET scanners and trained technologists to perform diagnostic exams, along with supplies, marketing, state licensing, procedure coding, and other information. ADM will provide the facilities and administrative services.

ADAC has been developing PET scanners for five years. Three years ago, the company introduced C-PET, a dedicated whole-body scanning device. ADM runs programs that let hospitals, freestanding clinics, group practices, and other managed-care providers deliver medical imaging services.

Also this month, ADAC announced results of its second quarter 2000. Revenue was $90 million compared to $87.4 million for second quarter 1999. The company's net income for the quarter was $3.1 million compared to a net loss of $7.9 million in second quarter 1999. ADAC said the second quarter 1999 loss was due to combined pretax restructuring and pretax charges of $18 million.

ADAC received orders for 16 C-PET units during the second quarter of fiscal 2000, compared with orders for 10 units in the first quarter.