Medi-Physics and Syncor declarearmistice in long-running dispute

June 5, 1996

Syncor agrees to distribute Medi-Physics' CeretecMedi-Physics and Syncor International have resolved a disputethat has divided allegiances among radiopharmaceutical makersand disrupted the industry since January 1995. As a result of the

Syncor agrees to distribute Medi-Physics' Ceretec

Medi-Physics and Syncor International have resolved a disputethat has divided allegiances among radiopharmaceutical makersand disrupted the industry since January 1995.

As a result of the reconciliation, Medi-Physics will sell Ceretecto Syncor under the terms of a 1994 consignment agreement. Inturn, Syncor will distribute Ceretec, a nuclear medicine brainand white blood cell labeling agent, through 119 radiopharmaciesin the U.S. and nine radiopharmacy services that serve internationalcustomers. The two-year agreement was effective May 20.

Most of Medi-Physics' products will continue to be distributedexclusively through its own radiopharmacy network, according toWilliam Ehmig, vice president of professional affairs for theArlington Heights, IL, subsidiary of Amersham International. Theagents include Myoview, Metastron, indium-111 oxine, indium-111DTPA, and technetium-99m-DMSA kit.

Ehmig played down the importance of the agreement.

"This is almost incidental compared with the ongoing strongperformance and continued growth of our pharmacy network,"he said.

More importance was ascribed to the agreement at Syncor, whereit was seen as a first step in improving the Chatsworth, CA, company'srelations with radiopharmaceutical suppliers, according to COORobert Funari.

The announcement of an armistice came about 16 months afterMedi-Physics halted sales of its products through Syncor's network(SCAN 2/15/95). Medi-Physics formed a distribution alliance withMallinckrodt Medical and Geodax Technology, reportedly to capturea larger proportion of profits ultimately generated by the salesof its products.

Ehmig was vague about the exact origins of the feud, whichoriginated before a distribution agreement for Ceretec was reachedin June 1994. However, the conflict was severe enough to involvelitigation, which Medi-Physics dropped in the face of mountingcosts and delays, he said.

The balance of power between the two factions took a turn lastmonth when Syncor and Mallinckrodt Medical formed an alliancegiving each company access to the other firm's radiopharmaceuticalproducts (SCAN 4/24/96).

"The Mallinckrodt agreement and the resolution of difficultieswith Medi-Physics were not directly connected, but from our perspective,they came out of the same philosophical base," Funari said.

Until Syncor and Mallinckrodt forged their agreement, radiopharmaceuticaldistribution was divided among networks controlled by Syncor,Mallinckrodt, and Medi-Physics. Syncor has a longstanding distributioncontract with Du Pont Merck, which makes the best-selling Cardiolitecardiac imaging agent, as well as brain agent Neurolite and cardiacstressor IV Persantine. The agreement between Syncor and Medi-Physicshad no effect on that distribution arrangement, company officialssaid.

Mallinckrodt's agents were distributed through its 35 radiopharmaciesand those allied with Medi-Physics.

Concurrently, Medi-Physics announced additions to its radiopharmacybase and new services for those facilities. Medi-Physics and itspartners Geodax Technology, Central Pharmacy Services, and MallinckrodtMedical have added 41 sites to the 126-facility network. New Medi-Physicsradiopharmacies were opened this year in Memphis, TN, and GrandRapids, MI.