Syncor and CTI form PET joint venture

May 22, 1996

Syncor continues to increase its commitment to the PET market.The Chatsworth, CA, radiopharmacy firm announced this month thatit has entered a joint venture deal with cyclotron developer CTIof Knoxville, TN, in which the firms will merge their PET

Syncor continues to increase its commitment to the PET market.The Chatsworth, CA, radiopharmacy firm announced this month thatit has entered a joint venture deal with cyclotron developer CTIof Knoxville, TN, in which the firms will merge their PET cyclotronsites into a single network, to be known as P.E.T.Net PharmaceuticalServices.

Syncor earlier this year said that it would spend $14 millionto build a regional network of cyclotrons to help overcome oneof the roadblocks slowing the development of PET: the distributionof F-18 fluorodeoxyglucose (FDG), the most commonly used PET radiopharmaceutical(SCAN 1/31/96). The deal with CTI will move Syncor a good distancetoward that goal without forcing it to build new cyclotron sitesin areas where CTI already has a presence.

Syncor operates four cyclotrons in the U.S., while CTI has six.P.E.T.Net will thus operate 10 cyclotrons in the U.S., with Syncor'sultimate goal being 20 cyclotrons in the P.E.T.Net network. Syncorand CTI own equal shares in the joint venture.

Each site in the network will probably have to receive its ownnew drug application for its formulation of FDG, according toa policy issued last year by the Food and Drug Administration.Syncor filed suit against the FDA to overturn the policy (SCAN9/13/95). Both sides have filed summary judgments in the case,and those motions are scheduled to be heard July 23, accordingto Syncor spokesperson Mary Meusborn.

Syncor last month released first-quarter financial results thatshow the company's outlook continuing to strengthen. Sales forthe quarter were $92.3 million, up 11% compared with $83 millionin the first quarter of 1995. Net income was $1.7 million, comparedwith $1 million in the same period a year ago. Syncor said thatthe improved results were due to pricing gains and strong growthin sales of cardiology products.