by John R. Fischer
, Senior Reporter | December 19, 2019
IBA (Ion Beam Applications S.A.) has sold a part of its dosimetry division to IZI Medical Products, a manufacturer of devices used in interventional radiology and oncology, for a cost of $14-$16 million.
The agreement transfers the ownership of RadioMed Corporation, a company acquired by IBA in 2003 that oversees the VISICOIL fiducial markers business of IBA’s dosimetry division, to IZI Medical. RadioMed produces VISICOIL, an implantable fiducial marker that provides soft tissue tumor localization to enhance the accuracy of radiation therapy planning and delivery.
"The sale is part of IBA’s wider strategic review of its dosimetry business," Thomas Ralet, head of corporate communication at IBA, told HCB News. "After extensive analysis the Board made the strategic decision to retain the core of the dosimetry business whilst selling the non-core part to IZI Medical Products. We believe IZI Medical Products’ leading expertise in interventional radiology and oncology makes it a suitable company to drive further market penetration and development of this reliable and high-quality solution for tumor identification."
The company previously announced in July 2018
that it was conducting a strategic review of its dosimetry business, with options including a sale, merger, initial public offering, or retention of the business.
The sale of RadioMed, however, follows a strong performance by the Belgian-based enterprise in the second half of 2019. It attributes growth within the radiotherapy and proton therapy markets — which require strong dosimetry capabilities — for its decision to retain the remainder of its Dosimetry division as an asset rather than sell it off entirely.
"We are happy that the sale strengthens the balance sheet, enabling the company to further capitalize on growth prospects, invest in R&D and build on our market-leading position across the globe. The sale is consistent with our strategy to focus on our core business," said Ralet.
The acquisition of RadioMed is the fourth add-on carried out by the Maryland-based IZI Medical in the last 24 months and is part of its aim to build up its portfolio of minimally-invasive diagnostic and therapeutic products for the interventional radiology market.
“We believe that the VISICOIL fiducial marker is the industry-leading solution due to its maximum soft-tissue fixation and minimal imaging artifact,” said Greg Groenke, chief executive officer at IZI Medical, in a statement. “We are excited to increase the market penetration of these products through RadioMed’s existing distribution channels and IZI’s direct sales force. These products are complementary to IZI’s existing Imaging Marker and Interventional Oncology portfolios.”
The remainder of the dosimetry division will be re-consolidated into IBA Group’s financial statements and will no longer be listed for sale.