Magna-Lab nabs distribution deal
Magna-Lab has added to its stableof distribution partners by signing a deal this month with BetaNumerics for global sales and marketing of the company's Magna-SL0.3-tesla extremity scanner. The deal complements a similar agreementreached with Elscint
Magna-Lab has added to its stableof distribution partners by signing a deal this month with BetaNumerics for global sales and marketing of the company's Magna-SL0.3-tesla extremity scanner. The deal complements a similar agreementreached with Elscint (SCAN 12/14/94).
Beta Numerics, of Canandaigua, NY, was formed recently to placemedical equipment at clinical sites on a fee-for-service basis.Its management team is headed by chairman Coy Eklund, formerlychairman of Equitable Life Assurance Society, and medical imagingveteran John Roberts, who serves as president.
Under the agreement between the firms, Beta Numerics will handledistribution of Magna-SL in Japan, India, Mexico, Singapore andGreece. These territories are not covered by Magna-Lab's Elscintdeal.
In addition, Beta Numerics has exclusive worldwide rights tofee-for-service placements of Magna-SL. Beta Numerics will alsohave worldwide distribution rights to a mobile version of Magna-SLin return for funding development of the scanner, according toMagna-Lab president John Haytaian.
As part of the agreement, Beta Numerics advanced $400,000 toMagna-Lab as payment for the first delivery of a Magna-SL system,which is being placed in aSan Antonio hospital on a fee-for-servicebasis.
The 10-year agreement requires minimum purchases by Beta Numericsof eight scanners in 1995, 16 scanners in the second year and24 scanners a year in the third through the tenth year. If theminimum targets are met, the deal would be worth $80 million toMagna-Lab.
In other Magna-Lab news, the Hicksville, NY, company met withrepresentatives from the NASDAQ stock exchange on Dec. 15 to discussthe firm's listing. NASDAQ informed Magna-Lab in November thatit may be out of compliance with NASDAQ listing requirements basedon the company's second-quarter results.
The meeting with NASDAQ went well and Magna-Lab believes thatit will maintain its listing, according to Haytaian. Magna-Labexpects to get final word on NASDAQ's decision by the middle ofJanuary.