June 24, 2008 - iCAD Inc. signed a definitive agreement to purchase the principal assets of CAD Sciences, a privately-held medical technology company based in White Plains, N.Y, aiming to expand iCAD's portfolio to advanced image analysis and workflow solutions for the early detection of the most prevalent cancers including breast, colon, prostate and, in the future, lung cancer.
Under the terms of the agreement, iCAD will pay $2 million in cash and $3 million in shares of iCAD common stock. The number of shares issued will be calculated using the average closing price for the 10 consecutive trading days immediately preceding the closing. This synergistic business transaction is projected by iCAD to add approximately $500,000 to its quarterly operating expenses through the balance of 2008, and the transaction is expected to close early in the third quarter of 2008, subject to certain pre-closing conditions.
CAD Sciences develops and distributes pharmaco-kinetic based CAD products that aid in the interpretation of contrast enhanced Magnetic Resonance Imaging (MRI) images of the breast and prostate. Products are also under development by CAD Sciences for therapy monitoring, for the identification of vascular diseases using contrast enhanced Magnetic Resonance Angiography (MRA) and for cancer detection using contrast enhanced Computed Tomography (CT). CAD Sciences has established clinical relationships at hospitals and teaching institutions worldwide with installations at Duke University, Massachusetts General Hospital, Johns Hopkins Hospital, University of Nijmegen (The Netherlands), University of Vienna (Austria), and the Universities of Essen and Cologne (Germany).
The company also hopes to increass the potential of an expanded relationship with OEM partners who manufacture and market MRI systems through direct integration of these solutions, and augment its product-development initiatives for CT solutions for the early detection of colon and lung cancer.
For more information: www.icadmed.com