PracSys and NASI clash over linacs

July 7, 1999

PracSys of Salem, NH, last month entered a claim with the American Arbitration Association against North American Scientific regarding a linear accelerator supply deal between the companies that broke down. PracSys filed the complaint on June 16, after

PracSys of Salem, NH, last month entered a claim with the American Arbitration Association against North American Scientific regarding a linear accelerator supply deal between the companies that broke down. PracSys filed the complaint on June 16, after its attempts to resolve a contract dispute with NASI failed.

PracSys and North American Scientific signed a supply deal last year in which North American agreed to pay PracSys $2.7 million for two linear accelerators (SCAN 3/4/98). North American Scientific planned to use the accelerators to produce palladium-103 for the manufacture of prostate brachytherapy seeds.

But the partnership soured six months ago, according to PracSys. The company’s complaint states that after the agreement with North American Scientific was signed, NASI signed a contract with another vendor for the supply of palladium, and reneged on its obligation to provide a lease guaranty crucial to the PracSys deal. PracSys claims that North American Scientific’s actions prevented it from fulfilling its contract, and the company seeks damages of $3 million.

PracSys’ claim is meritless, North American Scientific executives told SCAN. In a statement also released June 16, the Chatsworth, CA, company declared that it has realized its obligations under the 1998 contract with PracSys, and announced that it has asked PracSys to turn over the uncompleted linear accelerators—for which NASI claims it has paid in full. North American Scientific will install and finish them itself, the company said.