New Applications Increasing Scope of MRI Market

Business Wire, Nov 12, 1996

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Nov. 12, 1996--Need a detailed image of an internal organ? Magnetic Resonance Imaging (MRI) will give you the picture.

Hurt your knee playing basketball? An MRI will tell you how severe the injury is.

Think your fruit has worms? MRI will peruse your produce.

Each year, 20 million MRI scans are performed worldwide. And, according to WORLD MAGNETIC RESONANCE IMAGING MARKETS, a publication by the medical market research firm Frost & Sullivan, that number is growing along with the number of applications.

MRI is a non-invasive imaging technology that provides detailed images of the human body. Originally used to view the central nervous system, its use has expanded to study the internal composition and quality of fruits and vegetables.

In 1995, revenues for the world MRI market totaled $1.4 billion; there were an estimated 8,900 scanners throughout the world. Of these, 3,700 were estimated to be in the United States.

The U.S. market has provided MRI with most of its growth opportunities. About 8 million MRI scans were expected to be done in the United States in 1995. The number of MRI scans is also growing by 20 percent per year in Europe and 30 percent in Asia.

New technologies have been partly responsible for rising sales. The open design magnet is one such innovation. It is useful in examining extremities as well as very large patients, such as athletes, and claustrophobics.

Another important technology is the interventional MRI, or minimally invasive surgical procedures. Echo Planar Imaging (EPI) is ultra-fast, reducing scanning time to tenths of seconds while creating functional images of the brain, heart and abdomen.

Innovations in the contrast media market are also boosting the MRI market. Contrast media agents provide contrast in density between tissues and organs during exams.

Contrast media has increased MRI usage. Gastromark and Feridex IV (made by Advanced Magnetics) are predicted to increase the use of MRI.

Other market trends impacting sales include the emergence of Health Maintenance Organizations (HMOs), which lowers the price per exam. Reimbursement rates, which had been as high as $1,000 to $1,200 for each exam, dropped to between $400 and $500 per exam.

This new study by Frost & Sullivan details in length why some companies stand to gain -- and some to lose -- MRI market shares. Its analysis provides significant strategic insight into the direction and velocity of the market; companies receive recommendations for strategic action when purchasing this report, and receive a reliable source of continuing research by an international marketing consulting firm dedicated to defining market problems, needs and opportunities.

The companies included in this study are: Advanced NMR Systems, Inc., Applied SuperConetics, Inc., Berlex Laboratories, Inc., Bracco Diagnostics, Inc., Elscint, Inc., Fonar Corp., General Electric (GE) Medical Systems, Health Images, Inc., Hitachi Medical Systems of America, Intermagnetics General Corp., Magnex Corp., Medical Advances, Inc., Medrad, Inc., Mitsubishi Electronics America, MRI Devices Corp., Nycomed Imaging A/S, Oxford Instruments plc, Philips Medical Systems North America, Picker International, Inc., Shimadzu Medical Systems, Siemens Medical Systems, Inc., Sumitomo Electric, Inc., and Toshiba America MRI, Inc.

Frost & Sullivan is an international marketing consulting company that monitors the (MEG) industry for market trends, market measurements, and strategies. This ongoing research is utilized to update a series of research publications and to support industry participants with customized consulting needs. Free executive summaries of all Frost & Sullivan reports are available to the press.

Report: 5494-50 Publication Date: August 1996 Price: $2995

-0- For inquiries in the United States, please contact: Russ Pecoraro California 415.961.9000 ext. 488 415.961.5042 fax rpecoraro@frost.com Or, visit our web site at: http://www.frost.com

For all other inquiries, please contact: Kristina Menzefricke Stefan Gerhardt London Frankfurt 44.171.730.3438 49.69.235057 44.171.730.3343 49.69.234566

CONTACT: Frost & Sullivan

Russ Pecoraro, 415/961-9000 ext. 488 (California)

415/961-5042 fax

rpecoraro@frost.com

Or, visit our web site at: http://www.frost.com

For all other inquiries, please contact:

Kristina Menzefricke Stefan Gerhardt

London Frankfurt

44.171.730.3438 49.69.235057

44.171.730.3343 49.69.234566