Computed radiography and PACS firm Agfa announced plans to enter the digital radiography marketplace today, inking an OEM agreement with digital x-ray developer Canon Medical Systems. Under terms of the agreement, Agfa will privately label Canon's amorphous silicon flat-panel digital x-ray chest system for sale in all markets except Japan.
The deal allows Agfa to complement its CR product line with DR technology, and offer customers a range of digital x-ray products, according to John Glass, worldwide head of Agfa Medical Imaging in Mortsel, Belgium.
"We see a significant upward trend in CR, and a trend in DR that's growing in parallel," Glass said. "For the next five years we see that both markets will be robust."
Adding DR to Agfa's portfolio also allows the vendor to meet customer demand for more image acquisition devices following implementation of the vendor's Impax PACS software, he said. Glass made his comments in a media teleconference held today to discuss the new relationship with Gardena, CA-based Canon.
In future phases of the agreement, Agfa plans to incorporate its Musica image processing software and other application software into the systems. Agfa will also be looking for opportunities to expand into other DR markets, such as retrofit, general radiography, mammography, and fluoroscopy DR applications.
"We believe that both (CR and DR) products have unique pros and cons, and for some specific applications, DR will be superior," Glass said. "One that we're concentrating on now is chest [imaging], where we believe that DR is superior."
Agfa DR systems will be available to customers beginning in the fourth quarter, and will be sold for approximately $240,000 (U.S.), excluding the tube and generator. The vendor will soon release a total system price. Agfa will be responsible for servicing the DR systems.
As it moves into DR, Agfa will be taking on a market that, despite ambitious forecasts, has failed to live up to expectations. The biggest barrier has been cost, which can reach as high as $600,000 for some flat-panel systems. Healthcare institutions operating under cost constraints often find it difficult to justify such expensive technology.
It's clear, however, that many digital x-ray vendors believe it's necessary to offer both CR and DR products. At the 1999 RSNA meeting, Eastman Kodak Health Imaging introduced a family of DR systems through an OEM relationship with Analogic.
"Having another film vendor in the market only adds more credibility to the acceptance of digital radiography," commented Michael Cannavo, president of Image Management Consultants of Winter Springs, FL.
The decision to enter the DR arena also implies a change of heart by Agfa, which passed on Sterling Diagnostic Imaging's DR assets when it acquired the vendor in May 1999. Sterling's Direct Radiography Corp. subsidiary was later purchased by bone densitometry firm Hologic in June 1999 for approximately $30 million.
At the time, Agfa executives indicated a preference for directing company resources toward development of the firm's CR portfolio. Those efforts are apparently moving closer to fruition. At the 1999 RSNA meeting, Agfa showed glimpses of a number of works-in-progress CR features, including new needle storage phosphor and scanhead techniques.
Research and development on those projects will not be affected by the agreement with Canon. In fact, Agfa has invested more resources in those development efforts, Glass said. "Our intention is to bring both technologies to market as soon as possible," he said.
As it broadens into new digital x-ray sectors, Agfa has also been active in securing partnerships for its traditional CR business. The firm recently reached an agreement to supply Siemens Medical Systems with CR equipment. And Agfa's CR supply relationship with GE Medical Systems, formed in December, recently reached a milestone. The first CR reader labeled under GE's PathSpeed name rolled off the assembly line last week, Glass said.
By Erik L. Ridley
AuntMinnie.com staff writer
June 16, 2000
Related Reading
CR, DR vendors debate digital x-ray methods at SCAR meeting, June 4, 2000.
Agfa targets small hospitals with sales of Impax Basix, December 1, 1999.
Kodak jumps into digital x-ray with new flat-panel systems, November 28, 1999.
