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Biotech / Medical : IMAT - ultrafast tomography for coronary artery disease -- Ignore unavailable to you. Want to Upgrade?

To: WHL who wrote (2398)	4/15/1998 1:11:00 PM
From: Bruce Rozenblit	Read Replies (2) \| Respond to of 3725

HeartScan must go! I've been pounding on them for over a year that HeartScan won't work. Time has proven me correct and this is one argument I wish I lost. There are 5 centers with a total revenue of 2.5 million. At $400 a pop, that's 6,250 scans total or an average of 1,250 scans per center. Using a basis of 250 days a year, that's only 5 scans per center per day. With losses of 8.2 million and revenues of 2.5, that tells me they need 10.7 million in revenue just to break even. The gross overhead is then just over 2 million per center per year. This is nearly twice what it costs to feed a large CT machine in a hospital (roughly 1 million in overhead). Just to break even, they have to scan 21 people per day, every day, all year, in all centers. The maximum through put is only about 30 people per day. If they run full out, they might clear $750,000 per center. The numbers aren't there. Performance will have to improve by 400% just break even and 600% to have any significant profit. The risk is way too high for such small profits that are contingent on maximum capacity utilization. You are better off taking the capitol and putting in in a bank CD and get 6% with no risk. The overhead is way too high and the cost per scan is too low for the numbers to work. Looking at the numbers, who would buy HeartScan? I certainly wouldn't. It's a failed concept and we are stuck with 49% ownership. How can we get out from under this burden? The only possible buyer I can think of is an outfit that has an existing patient base to run through the machine. Without enough bodies, its a loser. The laws prohibit doctors from sending patients to diagnostic facilities that they have a financial interest in so how can a cardiology group buy a clinic? I can't think of a way out yet, but will work on it. If I get a good idea, I wonder if any one will listen?

To: WHL who wrote (2398)	4/15/1998 1:31:00 PM
From: stock bull	Respond to of 3725

WHL, I think you are correct. Heartscan is ahead of its time and is draining capital out of the company. They should close down the centers, sell the scanners, if possible, and concentrate on marketing the benefits of the utlrafast scanners. Also, they need to start a campaign directed towards the insurance companies and payment for the scans. I must admit, I don't know how they do this. An advertisement campaign would cost big bucks...money they don't have at this time. At this time, I just don't see how the scanner is going to enter the "mainstream" for CAD screening. Oh well, time will tell. Stock Bull