Monday, July 21, 2008

ICAD completes CAD Sciences buyout

By Mass High Tech Staff

ICAD Inc. reports that its has completed the purchase of the principal assets of CAD Sciences LLC, a privately-held medical technology company based in White Plains, N.Y.

The $5 million purchase price was comprised of $2 million in cash and 1.08 million shares of iCAD common stock. The number of shares issued was calculated using the average closing price for the 10 consecutive trading days immediately preceding the closing, company officials said.

CAD Sciences develops CAD products that help doctors interpret contrast-enhanced magnetic resonance imaging (MRI) images of the breast and prostate. The company is also developing products to identify vascular diseases and detect cancer, company officials said.

Among the institutions incorporating CAD Sciences’ technology are Duke University, Massachusetts General Hospital and Johns Hopkins Hospital, officials said.

Nashua, N.H.-based iCAD (Nasdaq: ICAD) develops computer-aided detection (CAD) solutions designed to enable health-care professionals to identify pathologies and pinpoint cancer earlier. The company provides a range of high-performance, upgradeable CAD systems for the high, mid and low volume mammography markets.

ICAD’s products are used for early cancer detection by more than 2,200 women’s health-care centers worldwide, according to the company. In 2007, iCAD reported a net loss of $1.5 million on revenue of $26.6 million.