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This article was originally published in The Gray Sheet

Executive Summary

MALLINCKRODT MEDICAL BEGINS U.S. SALES OF ACS INTERVENTIONAL RADIOLOGY products under an exclusive world-wide distribution agreement announced by Mallinckrodt parent IMCERA on Feb. 12. Under the terms of the agreement, Mallinckrodt has rights to sell devices manufactured by the Peripheral Systems Group (PSG) of Lilly's Advanced Cardiovascular Systems, Inc. under its own label. The agreement includes PSG's line of percutaneous transluminal angioplasty (PTA) catheters, interventional guidewires, directional atherectomy systems, therapeutic infusion devices and related accessory products. Mallinckrodt has not yet begun distribution of the PSG products in international markets but expects to do so over the next 12 to 18 months. The arrangement also calls for Mallinckrodt Medical "to team with PSG's research and product development activities to ensure a continuing stream of new products." Mallinckrodt says that the PSG products will complement its current offerings in the radiology market, which include contrast media and diagnostic catheters. In fiscal 1992, Mallinckrodt's combined radiology/cardiology market generated $294 mil. in sales. Gary Curtis, general manager of PSG, commented that the distribution agreement will provide "a much larger sales organization than currently exists" for the PSG products and "one already held in high esteem by the radiologists." The exec added that PSG believes it can "significantly improve its market penetration with this alliance."

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