A California investment firm that owns 4% of radiation therapy firm TomoTherapy is urging the Madison, WI, company to sell itself as a means of "boosting shareholder value."
In a November 17 letter to TomoTherapy's board, Avalon Portfolio urged TomoTherapy's management to "consider all available strategic options" due to the fall of the company's stock price since its initial public offering in 2007. Avalon went on to state that TomoTherapy's investments in sales and service infrastructure were "a suboptimal use of shareholder capital," given that the company has only a single product and a limited installed customer base.
Avalon told TomoTherapy that it should seek to monetize the company through an outright sale of the firm, a joint venture, or a licensing deal. The investment firm added that it had been "rebuffed" by TomoTherapy CEO Fred Robertson and the board in attempts to meet and discuss strategic alternatives.
For its part, TomoTherapy's board said that it takes Avalon's input seriously and is working with the company's management to maximize the potential of its products. The firm also claimed that it offered Avalon the opportunity to meet directly with several independent TomoTherapy directors, but that Avalon did not agree to the meeting.
Related Reading
TomoTherapy buys Chinese linac firm, November 5, 2008
TomoTherapy to develop mobile radiation therapy service, September 23, 2008
TomoTherapy partners with Vision RT, September 10, 2008
TomoTherapy gets 510(k) for new Hi-Art mode, August 27, 2008
TomoTherapy to shuffle management, August 26, 2008
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