Corporate News: MeVis Group underscores planned market entry into cardiovascular imaging

MeVis Medical Solutions extends strategic stake in Medis Holding B.V. to roughly 41 percent

  • Acquisition of a further capital share of approx. 27%
  • Market launch of the first joint product planned for the end of 2010
  • Integration plan for the gradual consolidation of business activities underway
  • Decision on full takeover in 2011

Bremen, June 1, 2010 – MeVis Medical Solutions AG [ISIN: DE000A0LBFE4], a leading software company in the field of medical imaging, today announced the acquisition of additonal capital share in Medis Holding B.V., Leiden, the Netherlands, and the broadening of the strategic alliance.

Medis is a leading developer and supplier of software for the quantification of a wide range of image data of the cardiovascular system. In their various forms, cardiovascular diseases are by far the most frequent cause of death in women and men in the industrialised nations. According to the Robert-Koch Institute, chronic health problems such as high cholesterol and obesity serve as particular risk factors for cardiovascular diseases.

The Medis software provides cardiovascular specialists with advanced quantification tools that help improve diagnosis, reporting, treatment planning and follow-up of cardiovascular diseases based on various imaging modalities. The market research unit Frost & Sullivan estimates the European market for digital cardiovascular imaging to be worth roughly 1 billion euros for the year 2012.

Thanks to its extensive recent technological improvements and clinical applications, magnetic resonance imaging (MRI) is increasingly suitable for deployment in the field of non-invasive diagnostics and therapy of cardiovascular diseases. The product QMass® MR currently being distributed by Medis worldwide serves to carry out MRI-based cardiovascular diagnostics and has been approved by leading public health authorities. This software application based on the new MeVis Visia™ product platform is to be rolled out on the market as the first joint product by the end of the current fiscal year.

At present, the strategic partners are working on a far-reaching integration plan in order to exploit the synergy effects of a joint market presence. Another factor in addition to a common product strategy and technological integration is the utilization of cross-selling potential by both partners.

“The experience of recent collaboration and the significant interest of Medis industrial partners in our Visia™ platform for multi-modality diagnostics and intervention show that we are on the right track with the targeted consolidation of our business activities,” says Dr. Carl J.G. Evertsz, CEO of MeVis Medical Solutions AG. “On account of the high epidemiological significance of cardiovascular diseases worldwide and the rapid technological improvements in cardiovascular imaging, this step represents a strategically important enhancement of our product portfolio.”

“Based on the past development of this process and the first reactions of our market partners and end users, the acquisition of an additional stake in Medis and the expansion of our strategic alliance is consistent with our earlier assessments and creates significant potential for our common (cardio)vascular developments in a broad sense,” says Prof. Dr Hans Reiber, co-founder and majority shareholder of Medis Holding B.V.

The purchase price for the additional capital share comprises a cash component and treasury shares. In 2011 then, provided certain conditions are met, the full integration of Medis Holding BV into the MeVis Group will be possible. The capital share is reported and assessed as a financial asset “at equity” in the consolidated MeVis balance sheet in fiscal 2010. As a result, there are no material changes relating to the sales and earnings forecast for the MeVis Group for the financial year 2010.

The parties agreed not to disclose the details of the transaction.

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