Bio-Imaging Tech sells CapMed to focus on clinical
The Newtown, Philadelphia-based company is selling CapMed to Metavante Technologies – a Milwaukee firm – for an initial fee of $500,000 plus future payments over a two-year period.
CapMed’s business is the development and marketing of portable personal health record and health management technologies, while Metavante’s primary focus is banking and payment systems.
Mark Weinstein, Bio-Imaging’s president and CEO, said CapMed would do much better as “part of an organization that is more closely aligned with
healthcare information and payment processing for consumers.”
CapMed says it launched the first commercial personal health record in the mid-1990s, before it was acquired by Bio-Imaging in 2003. In the same year it launched Personal Healthkey, a health information product which stores patient information on a USB memory stick, and has since branched out into web-based health records.
Bio-Imaging is in the process of shaking up its business, last year acquiring electronic data capture (EDC) company Phoenix Data Systems in a bid to expand its service offering in clinical research. Imaging and EDC are two technologies that are seeing rapid expansion in clinical trials.
The PDS acquisition drove Bio-Imaging’s third-quarter revenues up around 60 per cent to $15m, with operating income rocketing 78 per cent to $1.6m. During the period CapMed contributed revenue of $11,000, and cost the company $776,000 in operating expenses.
Weinstein said the sale of CapMed would allow Bio-Imaging to concentrate on “the core business of providing clinical trial services, including medical image management and eClinical data services.”
The company will incur a non-cash impairment charge of $2.5m-$2.7m in the fourth quarter as a write-down of the CapMed asset.
