Computer-aided detection (CAD) firm iCAD of Nashua, NH, has signed an agreement to acquire brachytherapy device developer Xoft of Sunnyvale, CA, for approximately $13.1 million.
The transaction includes approximately 8.5 million shares of iCAD common stock and approximately $1 million in cash, and is expected to close by the end of this year.
Xoft's net sales in 2010 are expected to total approximately $5.5 million. For 2011, iCAD predicted that its pro forma revenues, including Xoft, will be in the range of $34 million to $38 million.
Xoft's portable Axxent eBx electronic brachytherapy system is designed to provide electronically controlled radiation therapy directly to cancer sites with minimal radiation exposure to surrounding healthy tissue. The technology has received clearance from the U.S. Food and Drug Administration (FDA) for treating early-stage breast cancer, endometrial cancer, and skin cancer, as well as for treating other cancers or conditions in which radiation therapy is indicated.
Xoft's Axxent technology also is approved for accelerated partial-breast irradiation, which can be delivered twice daily for five days or administered immediately following the lumpectomy procedure in only a few minutes with one course of intraoperative radiation therapy (IORT).
There are 58 Axxent systems installed worldwide, with 56 of those units in the U.S.
Xoft's product portfolio also includes the portable Axxent Controller, x-ray source, and applicators, which can be utilized in hospital operating rooms and freestanding radiation oncology centers.
Xoft also offers products such as disposable balloon applicators for breast cancer treatment and applicators for additional disease indications in gynecologic and skin cancers. The applicators are used with Xoft's portable Axxent Controller.
Related Reading
iCAD reports lower sales, dips into black, November 4, 2010
iCAD gets FDA nod for VC CAD, August 5, 2010
iCAD posts gain in Q2 revenues, July 29, 2010
Xoft wins Premier contract, July 15, 2010
Xoft signs Hoag Memorial, June 30, 2010
Xoft completes Axxent install in Calif., June 23, 2010
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