U.S. DXA sales gain on Europe

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Sales of dual-energy x-ray absorptiometry (DXA) systems continueto be strongest in Europe. The relative position of this regionis declining, however, as demand picks up in the U.S., accordingto Richard B. Mazess, president of Lunar.DXA competitor Hologic

Sales of dual-energy x-ray absorptiometry (DXA) systems continueto be strongest in Europe. The relative position of this regionis declining, however, as demand picks up in the U.S., accordingto Richard B. Mazess, president of Lunar.

DXA competitor Hologic credited its 25% drop in overall revenuesin the firm's third quarter (end-June) to declining European sales.That vendor's decline in European sales may have reflected a largeinventory of systems shipped previously to Europe by Hologic butnot sold, Mazess said.

"European sales are holding fairly constant, while salesin the U.S. have improved. I don't think Norland (another DXAcompetitor) has had a problem with sales in Europe. We haven'tseen a problem," he said.

Europe has historically made up about 60% of the worldwidedensitometry market, with 20% in the U.S. and 20% in the restof the world. The percentage of sales to Europe may have droppedto about 50% over the last year, as the U.S. market share roseto 30%, Mazess estimated.

Clinical interest in densitometry is rising in the U.S. andsome private reimbursement is occurring, he said. California'sBlue Cross/Blue Shield organizations indicated in July that theywould reimburse for one type of densitometry test, he noted.

While Hologic saw its revenue dip and net income drop by halffrom $780,000 in the third quarter of 1990 to $320,000 in thesame period this year, Lunar had a 69% jump in revenue for itsfourth quarter (also end-June), from $3.7 million in 1990 to $6.3million in 1991. Lunar's net income more than doubled for thequarter from $530,000 in 1990 to $1.2 million this year (see charts).

Hologic did not initiate sales of its latest DXA product,the QDR-2000 supine lateral system, until the quarter that endedin June, however.

Lunar maintained its DXA market share at about 45% over thelast nine months, Mazess said. Hologic, which used to be neck-and-neckwith Lunar, may be loosing share to both Norland and Sopha ofFrance, he speculated.

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