Medical services and software company Flying Brands Limited (LON:FBDU) has pulled the trigger on its proposed acquisition of Imaging Biometrics.
The company is paying US$68,134 in cash and issuing 11mln shares to the vendor, though there is an option for Flying Brands to pay a cash equivalent of 4p a share in lieu of issuing shares.
Imaging Biometrics (IB) is based in Wisconsin, USA. It is advancing the field of medical imaging by specialising in the design and manufacture of advanced visualisation software solutions using quantitative imaging endpoints/biomarkers.
IB has been managing the CE marking and US Food and Drug Administration (FDA) clearance process for StoneChecker, Flying Brands’ kidney stone medical imaging software; FDA clearance is expected before the end of June this year.
The launch of StoneChecker in the USA will include targeting of the existing luminary sites in which IB has established its IB Clinic product, and marketing resources will be combined to target the same customer group of board-certified radiologists at both tertiary and regional hospitals. Initially, Flying Brands will focus on the commercialisation of artificial intelligence software for the management of kidney and brain diseases, which both share similar patient management and reimbursement pathways and affect large numbers of patients each year.
IB is also involved in the rapidly growing radiology artificial intelligence (AI) market by offering a full range of services, including medical discovery, proof of concept testing, contract manufacturing, clinical evaluation of biomarkers, regulatory clearance and full commercialisation of approved products, Flying Brands noted.
This provides Flying Brands with multiple opportunities to facilitate the growing interest in AI solutions in radiology and positions it well for future industry consolidation, the company proclaimed.
“North America is the largest medical market in the world and … the acquisition of IB provides not only immediate access to that territory but also to a very high level of technical expertise for the development of new products and services,” said Trevor Brown, the chief executive officer of Flying Brands.
“IB's management team are well known to us and share our vision of introducing disruptive technology - that will change cost models - to fast-growing cancer and stroke treatment markets," he added.
The shares were up 1.1% at 4.05p in the first hour of trading on Tuesday.