Du Pont builds stable of partnersby forging PACS link with Olicon

July 6, 1995

Olicon awaits outcome of Du Pont divestitureDu Pont has expanded its strategy of gaining PACS expertise throughpartnering by signing a distribution deal with Olicon ImagingSystems. The deal gives a lift to Olicon, but the San Clemente,CA, firm

Olicon awaits outcome of Du Pont divestiture

Du Pont has expanded its strategy of gaining PACS expertise throughpartnering by signing a distribution deal with Olicon ImagingSystems. The deal gives a lift to Olicon, but the San Clemente,CA, firm may find itself dealing with a new face in the next fewmonths because of Du Pont's decision to sell its Medical Productsgroup (SCAN 6/7/95).

Under the terms of the deal, Du Pont will distribute PACS productsdeveloped by Olicon on a nonexclusive basis. Du Pont has similaragreements with ISG Technologies and Cemax, although the Cemaxagreement may have to be renegotiated due to that firm's evolutioninto Cemax-Icon (SCAN 6/21/95).

Du Pont is interested in the entire line of Olicon products,according to Olicon CEO Dick Paulsen. The two firms will integrateOlicon's offerings with Du Pont's Linx networking system via theACR-NEMA's DICOM 3.0 standard.

The timing of the deal is awkward, given Du Pont's recent announcementthat it intends to divest its medical imaging business. But Oliconis optimistic that the new owner of Du Pont's digital imagingunit will seek to maintain the relationship.

"The agreements will pass along with (the new owner),"Paulsen said Like Du Pont, Olicon has been active in developingpartnerships. It has an agreement similar to the Du Pont dealwith a telemedicine firm and is also negotiating a relationshipwith a multimodality vendor, Paulsen said.

The Du Pont/Olicon agreement, and others between film and multimodalitycompanies and smaller software developers, are representativeof a growing trend in the PACS industry, according to MichaelCannavo of Image Management Consultants in Winter Park, FL.

"It reaffirms the need for larger companies to embrace technologiesdeveloped by smaller companies, allowing them to more quicklyrespond to the changes in the marketplace," Cannavo said.