PET sales drive ADAC’s 3Q revenue increase

August 16, 2000

ADAC Laboratories parlayed expansion of its distribution agreement with Hitachi in Japan and a three-year group purchasing agreement with Novation signed during the third quarter of fiscal 2000 into a net income of $4.6 million, compared to a net loss

ADAC Laboratories parlayed expansion of its distribution agreement with Hitachi in Japan and a three-year group purchasing agreement with Novation signed during the third quarter of fiscal 2000 into a net income of $4.6 million, compared to a net loss for the third quarter of 1999 of $5.4 million.

The Novation contract is expected to result in purchases of $15 million in PET and nuclear medicine imaging equipment during the first year of the deal.

Texas-based Novation is the healthcare industry’s largest purchasing organization. The ADAC contract was the result of competitive public bids.

Hitachi Medical Systems is now ADAC’s exclusive distributor in Japan of its PET imaging systems, as well as its nuclear medicine products and its radiation therapy planning system.