More niche MR imagers in works at Magna-Lab

January 27, 1993

Niche-MRI developer Magna-Lab moved last month to take itselfpublic prior to scale-up of production and commercialization ofa line of dedicated MR scanners. The firm registered last monthwith the Securities and Exchange Commission for an initial

Niche-MRI developer Magna-Lab moved last month to take itselfpublic prior to scale-up of production and commercialization ofa line of dedicated MR scanners. The firm registered last monthwith the Securities and Exchange Commission for an initial publicoffering of common stock on the NASDAQ exchange. It is awaitingcomments from the agency, according to John D. Haytaian, vicepresident.

The Hicksville, NY, firm showed a research and developmentprototype of its first MRI system, Magna-SL, at the RadiologicalSociety of North America meeting in Chicago last month (SCAN 12/2/92).The permanent magnet system uses a 0.3-tesla, three-sided magnetfor extremity and brain imaging. The company plans to sell thesmall-bore niche system for under $500,000.

Magna-Lab had expected to apply for Food and Drug Administration510(k) approval of its first system early this year, but as ofFriday, an FDA application had not been filed.

Future product plans are discussed by Magna-Lab in its SECregistration, according to Haytaian. The company is currentlyin a quiet period related to the registration and can only discussmaterial in its IPO prospectus.

Two other scanners with niche applications are under developmentbut not yet in the prototype stage, he said. They are:

  • Magna-SLM, a dedicated MRI breast imager; and

  • Magna-SLS, a spine MRI system.

Both systems will use a variation of the open-magnet designof the SL. The SLS could have other imaging applications beyondthe spine, but this has not yet been determined, Haytaian said.

Magna-Lab hopes to offer 830,000 shares of stock at $6 a share,grossing about $5 million. Net funds will be used to continuedevelopment of all three scanners and begin setting up manufacturingand service facilities, he said.