News | October 05, 2012

Bankruptcy Judge Approves Gamma Medica’s DIP Financing

Company pledges to continue LumaGEM molecular breast imaging work

October 5, 2012 — Judge Victoria Kaufman of the U.S. Bankruptcy Court for the Central District of California (San Fernando Valley Division) approved Gamma Medica Inc.’s $1.5 million debtor-in-possession (DIP) financing on a final basis on Oct. 3 as part of its Chapter 11 restructuring. This DIP financing order provides the molecular breast imaging (MBI) manufacturer with sufficient financing to pursue a reorganization or asset sale.

“Gamma Medica’s LumaGEM molecular breast imaging system is already in the market and is very promising,” said recently named CEO Jim Calandra. “We also have industry leading preclinical imaging products. We plan on being sure our tools are in the hands of researchers and radiologists working in women’s imaging."

Gamma Medica’s Clinical Imaging Division, with its LumaGEM MBI system, has installed more than 20 systems in clinical and research facilities in the United States and Europe. Radiologists use the device as a diagnostic tool, adjunct to a traditional mammogram, and it is useful thanks to the ability to diagnose lesions in dense breast tissue. Gamma Medica also has a Pre-Clinical Imaging Division with its Triumph II tri-modality imaging system, which features the only solid-state SPECT (single-photon emission computed tomography) imaging available and market-leading PET (positron emission tomography) imaging technology, available for small animal imaging.

Gamma Medica has also hired investment bank CRS Capstone LLC to advise the company on the sale or financial restructuring of one or more of Gamma Medica’s divisions. “We were already restructuring Gamma Medica when the company filed for Chapter 11 protection, so we are already on the path to emergence,” said Calandra, founder of the restructuring firm Birch Hill Partners. “We’ve made changes in management and we’re already refocusing operations on the needs of our customers.”

“It is unusual for a startup company to have the creditor support to be able to go through Chapter 11 rather than liquidation, but the LumaGEM technology has been embraced in the market and its investors expect it to succeed,” added Calandra. “Its reimbursement is half the cost of MRI [magnetic resonance imaging] and radiologists tell us the images are much easier and faster to read.”

For more information:

Related Content

Houston Methodist Hospital Enters Multi-Year Technology and Research Agreement With Siemens Healthineers
News | Imaging | August 17, 2017
Houston Methodist Hospital and Siemens Healthineers have entered into a multi-year agreement to bring cutting-edge...
Patient Complexity, Subspecialization Impact List Prices for Radiologists' Services
News | Business | August 15, 2017
A new study by the Harvey L. Neiman Health Policy Institute finds that patient condition complexity and...
Upcoming radiology conferences, meetings and events.
News | August 14, 2017
ITN maintains a comprehensive listing of radiology specialty meetings on its website at ...
ACR Establishes Education Committee for Patient- and Family-Centered Care
News | Patient Engagement | August 09, 2017
Members of the new Education Committee of the American College of Radiology (ACR) Commission on Patient- and Family-...
ACR Annual Conference on Quality and Safety Offers Strategies for Radiology Practices
News | Business | August 08, 2017
The American College of Radiology (ACR) Annual Conference on Quality and Safety, scheduled for Oct. 13-14 in Boston,...
Sponsored Content | Videos | Business | July 28, 2017
Angelic McDonald, MSRS, CRA, FAHRA, regional director of imaging, Baylor Scott & White Health and the president-e
Radiation dose tracking in medical imaging is helping increase patient safety by lower X-ray doses.
Feature | Radiation Dose Management | July 26, 2017 | Dave Fornell
Patient X-ray radiation exposure from medical imaging has been a hot topic in radiology the past few years and has pr
Radiologists Seek Greater Involvement in Patient Care
News | Patient Engagement | July 20, 2017
Despite time and workload constraints, radiologists are looking for ways to become more directly involved in the care...
ACR Updates Radiation Oncology and Medical Physics Guidance With ASTRO and AAPM
News | Radiation Dose Management | July 19, 2017
July 19, 2017 — The American College of Radiology (ACR) recently collaborated with professional medical societies to
Overlay Init