Elekta acquires Resonant Medical Inc., adding new solutions for image guided radiation therapy for treating cancer.

Groundbreaking non-invasive, non-ionizing image guidance technology enables exquisite visualization of soft tissue targets, provides promising platform for next generation motion management.

Elekta today announced the acquisition of Resonant Medical Inc., Montreal Canada. Through this acquisition, Elekta adds exciting new solutions for image guidance as well as highly skilled R&D resources in the field of oncology imaging and motion management.

Resonant Medical Inc. (‘RMI’) develops systems for image guided radiation therapy of soft tissues using latest generation, 3-D ultrasound technology. Subject to customary closing conditions, Elekta will pay CAD 30 M in cash for the outstanding shares of RMI.

RMI’s integrated software solutions have been developed in cooperation with leading academic institutions to improve treatment accuracy for cancer in the prostate, breast, liver, cervix, uterus, bladder as well as head and neck. RMI’s equipment is in daily clinical use in the US, Canada, Italy, The Netherlands and Ireland and its research collaborators are considered among the world leaders in their field.

Elekta’s President and CEO Tomas Puusepp said “This is really exciting, as it further enhances Elekta’s state-of-the-art solutions in IGRT, by adding RMI’s leadership in soft tissue visualization and tracking, especially focused on innovative solutions for breast and prostate cancer. In addition, given Elekta’s dedication to open architecture, the technology will be made available to customers with other vendors’ equipment, making it possible to improve IGRT processes everywhere.”

RMI’s current products will continue to operate with linear accelerators from all manufacturers and provide outstanding image guidance for soft tissue targets, especially in the breast and pelvic area, without additional x-ray dose or using invasive implanted markers. They can add high quality IGRT to the thousands of linacs in use today that do not have integrated imaging systems, while the soft tissue detail is also highly complementary to linacs already equipped with cone beam CT or MV (portal) imaging.

In addition, RMI will provide useful additions to Elekta’s MOSAIQ® treatment planning solutions by displaying soft tissue structures, not easily seen on X-ray computed tomography but in exact spatial correlation with these CT images, and offering a suite of automatic segmentation and contouring tools. 

“Elekta has gained an experienced development team with mature, easy-to-use, stable clinical products. And the established sales and marketing infrastructure of Elekta is the perfect foundation to further introduce this valuable technology to the radiation oncology market. Beyond just today however, the really exciting things are yet ahead as we start to integrate RMI:s solutions with MOSAIQ and in the future with our state-of-the art linear accelerators”, says Elekta’s President and CEO Tomas Puusepp.

RMI was founded in 2000 based on research from McGill University, Montreal. The CEO of the company, Tony Falco, Ph.D. is one of the founders and has over 15 years experience in advanced imaging technology; clinical, product development, supply, and IP creation. The company has 35 employees, of whom most are based in Montreal, Canada.

Tony Falco, CEO of RMI, says: “These are exciting times. RMI provides solutions compatible with all vendors’ simulators and linear accelerators and together with Elekta’s world-wide customer network it provides us for the first time with the ability to improve clinical standards on a global basis. In addition, being fully integrated with a leading clinical solutions provider like Elekta makes it possible for us to deliver truly unique integrated clinical solutions in the future, all of which is important in improving patient care.”

Elekta expects to consolidate RMI into its accounts as from June 1st, 2010. The revenue for 2010/11 is expected to be around CAD 10 M.  The transaction is forecasted to have a minor dilutive effect on reported earnings per share during fiscal year 10/11 and be mildly accretive the following fiscal year.

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For further information, please contact:

Todd Powell, Executive Vice President, Elekta Software, Elekta AB
Tel: +1 650 823 3085, email: [email protected]

Time zone: PDT: Pacific Daylight

Stina Thorman, Vice President Corporate Communications, Elekta AB

Tel: +46 8 587 254 37, Mobile tel: +46 70 778 60 10 email: [email protected]

Time zone: CET: Central European

About Elekta

Elekta is a human-care company pioneering significant innovations and clinical solutions for treating cancer and brain disorders. The company develops sophisticated, state-of-the-art tools and treatment-planning systems for radiation therapy and radiosurgery, as well as workflow-enhancing software systems across the spectrum of cancer care.

Stretching the boundaries of science and technology, providing intelligent and resource-efficient solutions that offer confidence to both health-care providers and patients, Elekta aims to improve, prolong and even save patient lives, making the future possible today.

Today, Elekta solutions in oncology and neurosurgery are used in over 5,000 hospitals globally, and every day more than 100,000 patients receive diagnosis, treatment or follow-up with the help of a solution from the Elekta Group. Elekta employs around 2,500 employees globally. The corporate headquarter is located in Stockholm, Sweden, and the company is listed on the Nordic Exchange under the ticker EKTAb. For more information about Elekta, visit www.elekta.com.

About Resonant Medical

Established in 2000, Resonant Medical innovates and develops revolutionary clinical solutions that are safe and gentle for the patient while increasing the accuracy and precision of radiotherapy cancer care. The company commercializes unique products that provide better visualization of soft tissue anatomy throughout the radiotherapy patient workflow. Resonant’s Clarity system is the first and only product to provide a non-invasive and radiation-free image guidance solution for all conformal breast cancer treatments, as well as for the treatment of other cancers such as prostate, cervix, uterus, liver, bladder and head & neck. Resonant’s technologies are available in cancer centers throughout the U.S., Canada and Europe, helping make significant improvements in patient care. The company is headquartered in Montreal, Canada. For further information about Resonant, visit www.resonantmedical.com.