Medtech Insight is part of the Business Intelligence Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

MAGNA-LAB'S MRI MAGNA-SL HEAD AND EXTREMITY SCANNER

This article was originally published in The Gray Sheet

Executive Summary

MAGNA-LAB'S MRI MAGNA-SL HEAD AND EXTREMITY SCANNER will be targeted to the physician's office market, the start-up firm reports in a Dec. 24 registration statement for an initial public offering. Noting that the large size and high cost of whole-body magnetic resonance imaging units make them undesirable for the physicians office market, the Rockville, New York-based company states that it is "seeking to establish a new market...by emphasizing to individual practitioners the advantages of having a specific-use magnetic resonance imaging machine in their office." Designed to be smaller and "substantially less expensive" than conventional whole-body MRI machines, the research and developmental prototype of the Magna-SL is approximately two-and- one-half feet high, three-and-one-half feet deep, and two feet wide, requiring only 150 square feet of space to operate. The unit uses a three-sided magnet structure, open at top and bottom, "thereby permitting non-claustrophobic scanning." Most "currently available MRI scanners use a large magnet which surrounds a patient on all four sides," the firm points out. The Magna-SL is the first of three new MRI devices to reach the production prototype stage at Magna-Lab. Currently, the company is conducting preliminary research on two other devices: the Magna-SLM Mammography Scanner and the Magna-SLS Spine Scanner. The Magna-SLM Mammography Scanner is designed to permit "non- claustrophobic mammography at a cost comparable to current x-ray testing...while enabling women of all risk groups to receive annual scanning," since it will not expose the patient to x-ray radiation. The Magna-SLS Spine Scanner will "permit the non- claustrophobic imaging of the spine and back and would also make possible the imaging of a patient in a weight-bearing position which cannot be accomplished with currently available MRI devices." The company hopes that all three scanners can be cleared for marketing via the 510(k) process. Magna-Lab is expecting to gross $5 mil. from its offering of 833,000 units at $6 per unit. Each unit consists of one share of Class A common stock, one redeemable Class A warrant and one redeemable Class B warrant. The offering is being underwritten by D.H. Blair. Of the net proceeds, $400,000 is slated for continued work on the Magna-SL, including "development of a production prototype" and "refinement of its external appearance." Initial research and development of the Magna-SLM Mammography Scanner is expected to use $800,000 of the proceeds, while $350,000 is earmarked for initial research on the Magna-SLS Spine Scanner. The company believes that the proceeds will fund operations for approximately 12 months and are unlikely to be sufficient to "complete a working research and development prototype" of either the mammography or spine scanner. Approximately $500,000 will be used "to establish an in-house marketing capability including a sales force with adequate administrative support personnel for a marketing promotion campaign," the firm says, noting that it anticipates building a sales force of five direct representatives within 12 months. Magna-Lab intends to market its products overseas through contractual arrangements and has targeted $150,000 for "seeking to enter into joint venture or license agreements or similar collaborative arrangements for the marketing and distribution of the Magna-SL." From its commencement of operations in February 1992 through August 1992, Magna-Lab has sustained a net loss of $703,000. The firm was co-founded by Lawrence Minkoff, PhD, and Joel Stutman, PhD. Minkoff, who serves as chairman of the board, president and chief executive officer, also serves as president of Minkoff Research Labs, a principle shareholder in the company. From 1978 to October 1989, Minkoff was executive vice president of Fonar Corp., a developer of nuclear magnetic resonance devices. Stutman, who has served as vice president, chief operating officer and a director since the company's inception, had previously served as president of Imaging Systems International, a provider of MRI services, following a nine-year stint at Fonar. After the offering, the officers and directors as a group will own 65.8% of Magna-Lab stock and will have 87.3% of voting power.
Advertisement
Advertisement
UsernamePublicRestriction

Register

MT000088

Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel