Dornier coordinates medical drive

September 25, 1991

Dornier's international distribution strengths and worldwide namerecognition will boost international sales of Acoustic Imagingultrasound systems this year, said Daniel E. McNulty, former presidentand CEO of Acoustic Imaging. International sales will

Dornier's international distribution strengths and worldwide namerecognition will boost international sales of Acoustic Imagingultrasound systems this year, said Daniel E. McNulty, former presidentand CEO of Acoustic Imaging.

International sales will equal those in the U.S., McNulty said.Prospects for future growth may expand further as the German vendorcoordinates its attack on the medical market.

Dornier executive Reinhard Warnking replaced McNulty as headof AI last month. McNulty continues as a consultant and minorityinvestor in AI (SCAN 9/11/91).

As Dornier incorporates the AI ultrasound business into itsworldwide medical operations, it should be able to exploit anadvantage Dornier holds over competitors. The medical vendor couldpotentially offer customers combined diagnostic and therapeutictechnologies in one package, Warnking told SCAN.

"Dornier Medical has both therapeutic and diagnostic divisions.This gives us an advantage over other companies with only diagnosticknow-how," he said. "Because of cost pressures to makeprocedures less invasive and quicker, combining therapeutic anddiagnostic devices will be the way to go in the future."

Warnking previously headed up the international ultrasoundsales effort by Dornier that was launched only last October. Heintroduced McNulty to Dornier when the U.S. executive was searchingfor partners to invest in AI two years ago.

An example of a combined therapeutic and diagnostic productis the Oracle intraluminal device under development by Endosonicsof Pleasanton, CA. Oracle pairs intraluminal ultrasound and balloonangioplasty on a single catheter.

Dornier is responsible for distributing Endosonics products,including Oracle, outside the U.S. as part of a joint sales/R&Dagreement the two firms signed in May.

At that time, Endosonics president Michael R. Henson citedDornier's large laser subsidiary, MBB, as a potential source oftechnology for the development of future hybrid imaging/therapysystems (SCAN 6/5/91).

AI will not sell intraluminal ultrasound products in the immediatefuture, but Warnking did not rule out moving in that directionas new technologies are developed.

Dornier formed three medical divisions last month--ultrasound,lasers/surgery and urology/lithotripsy--as part of its medicalrestructuring. All three are very competitive fields, Warnkingsaid. The company is likely to concentrate on these areas ratherthan seeking out other medical opportunities, he said.

"Let's first clean up our yard before thinking about additionalimaging modalities," he said.