BOTHELL – SonoSite Inc. announced Monday its acquisition of a Philadelphia-based development company and reported a 32 percent jump in second quarter earnings.
The Bothell-based maker of ultrasound devices, SonoSite saw its net income rise to $1.7 million, or 10 cents per share, in the second quarter of 2007 compared to the same period in 2006. The company’s net income has grown 23 percent in the first half of 2007, compared to the first half of 2006. SonoSite also announced its purchase of LumenVu, a privately held developer of catheter location technology.
“Clinicians have been rapidly adopting SonoSite’s hand-carried ultrasound systems to increase the accuracy and speed of catheter insertion,” said Thomas Dugan, senior vice president of global marketing and U.S. sales. “LumenVu’s technology will offer the perfect complement to ultrasound by providing a way to easily track the tip of the catheter as it advances through the vessel to ensure that it is placed in the right location.”
SonoSite expects to introduce products based on this technology in late 2008. Terms of the agreement were not disclosed and the transaction is not expected to have a material effect on SonoSite’s 2007 financial results.
More than 1.5 million peripherally inserted central catheters are placed annually in the U.S. each year. The market growth is estimated at approximately 25 percent annually.
Clinicians place many of the catheters frequently using a “blind” technique, leading to an estimated failed insertion rate of 27 percent. Incorrectly positioned catheters can lead to delays in treatment, clinical complications, patient discomfort and additional expense.
LumenVu’s real-time bedside visualization system couples near infrared light with standard catheter technology. An optical fiber combined with a guidewire emits light as it is inserted into the patient. A specialized camera captures light from the tip of the optical fiber and projects images onto a monitor placed at the patient’s bedside.
Earlier this month, SonoSite announced plans to raise up to $150 million from investors in order to raise money for potential acquisitions.
“Subsequent to quarter end, we acquired a catheter tip location technology that will drive future product offerings in the vascular access market and successfully completed a convertible senior note offering,” SonoSite president and chief executive Kevin Goodwin said in a statement. “With the addition of the funds from the offering, we have over $300 million in cash and investments that place us in an excellent position to evaluate potential strategic opportunities in our key, point-of-care markets.”
Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com.
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