Lunar hit by market slowdown

In line with the company’s previous warning (SCAN 4/1/98),Lunar’s third-quarter financial results were impacted by marketconditions that continue to plague bone densitometry firms. For theperiod (end-March), the Madison, WI-based firm saw a 9% decline inrevenue, with sales of $18.1 million compared with $19.9 million in thesame period last year. Net income was $692,000, a sharp dip comparedwith the $3.3 million profit posted in the third quarter of 1997. Lunarattributed the decline to a shift in purchasing from hospitals tophysician offices and clinics, which buy less expensive machines.

Inother Lunar news, the company substantially broadened its distributionchannels with the signing of agreements with medical productdistributors McKesson General Medical and Caligor Physicians andHospital Supply. Under the terms of the nonexclusive deals, McKesson andCaligor will begin distributing Lunar’s DPX-MD and PIXIdensitometers immediately. The deals bring a collective sales force ofmore than 1000 to help Lunar improve its access to the emergingoffice-practice densitometry markets, according to the company. McKessonof Richmond, VA, and Pelham Manor, NY-based Caligor will also haverights to the Achilles ultrasound-based densitometer, which is pendingFood and Drug Administration premarket approval.