Vital Images to Offer Scanning Software to Hospitals in China Through Chindex

Includes: CHDX, VTAL
by: ChinaBio Today

Vital Images (NSDQ: VTAL) will distribute its visualization software for CT and MR scans in China through Chindex International (NSDQ: CHDX). Vital Images has already obtained SFDA approval for its product, which Chindex will market to hospitals throughout China. Specific financial terms of the arrangement were not disclosed.

Vital Images’ flagship product, Vitrea®, is a high-speed volume rendering technology that creates interactive 2D, 3D or 4D images from information generated by standard CT scanners. Vitrea is commonly installed on standalone workstations, as well as on PACS (picture archiving and communication systems), providing advanced visualization for radiological, cardiac, oncological and surgical applications. Vitrea renders color images at high speeds and enables users to navigate within these images interactively.

About 40% of Vital Images’ $15 million of revenues in its most recent quarter derived from license fees. The remaining 60% came from maintenance and service fees. The company commented that a falloff in US revenues during the quarter was partially offset by an increase in foreign sales.

Chindex operates two divisions in China. It offers private care healthcare services through its United Family Healthcare network, while it also distributes medical devices to hospitals throughout China and Hong Kong. In its most recent quarter, revenues from healthcare services totaled $20.2 million, a rise of 16%; sales of medical products provided the majority of its growth, rising to $39.5 million, a 130% increase. Chindex distributes other imaging products along with surgical equipment.

Disclosure: none.