Company pledges to continue LumaGEM™ molecular breast imaging work
NORTHRIDGE, Calif.--(BUSINESS WIRE)-- Judge Victoria Kaufman of the U.S. Bankruptcy Court for the Central District of California (San Fernando Valley Division) approved Gamma Medica Inc.’s $1.5 million debtor-in-possession (“DIP”) financing on a final basis October 3, 2012 as part of its Chapter 11 restructuring. This DIP financing order provides the molecular breast imaging (MBI) manufacturer with sufficient financing to pursue a reorganization or asset sale. “Gamma Medica’s LumaGEM® Molecular Breast Imaging System is already in the market and is very promising,” said recently named CEO Jim Calandra. “We also have industry leading preclinical imaging products. We plan on being sure our tools are in the hands of researchers and radiologists working in women’s imaging.”
Gamma Medica’s Clinical Imaging Division, with its LumaGEM® Molecular Breast Imaging System, has installed more than 20 systems in clinical and research facilities in the United States and Europe. Radiologists use this device as a diagnostic tool, as an adjunct to a traditional mammogram. It’s especially useful because of its ability to diagnose lesions in dense breast tissue. Gamma Medica also has a Pre-Clinical Imaging Division with its Triumph™ II trimodality imaging system, which features the only solid state SPECT imaging available and market leading PET imaging technology, available for small animal imaging.
Gamma Medica has also hired the investment bank CRS Capstone, LLC to advise the company on the sale or financial restructuring of one or more of Gamma Medica’s divisions. “We were already restructuring Gamma Medica when the company filed for Chapter 11 protection, so we are already on the path to emergence,” said Calandra, founder of the restructuring firm Birch Hill Partners. “We’ve made changes in management and we’re already refocusing operations on the needs of our customers.”
“It is unusual for a start-up company to have the creditor support to be able to go through Chapter 11 rather than liquidation,” said Calandra, “but the LumaGEM® technology has been embraced in the market and its investors expect it to succeed. Its reimbursement is half the cost of an MRI and radiologists tell us the images are much easier and faster to read.” In published studies by the Mayo Clinic in Rochester, MN, the LumaGEM® system has high sensitivity 91% and specificity 93%. (Sensitivity is the probability that existing disease will be identified and specificity is the probability that a patient without disease gets a negative result.)
About Gamma Medica, Inc.:
Gamma Medica, Inc. (www.gammamedica.com) is dedicated to leading medical imaging into a new digital era with its Clinical and Pre-Clinical divisions. The Clinical Division designs, builds and services the LumaGEM® Molecular Breast Imaging (MBI) System. The LumaGEM® MBI System is the first commercially available, FDA-cleared, planar, dual head, fully solid-state digital imaging system utilizing cadmium zinc telluride (CZT) technology used for breast imaging.
For Gamma Medica, Inc.
Kathleen Rowe, 781-455-9050
Source: Gamma Medica, Inc.