|
New
Release -- Superconductor Week does not edit or endorse the following
news release:
Nanjing Brain Hospital
accepts delivery of VSM's functional brain imager
Vancouver, BC, Mar. 21: VSM MedTech Ltd. (TSX:
VSM) has
become the clear leader in the Chinese market for magnetoencephalography (MEG)
systems after winning another sale for a Chinese hospital. VSM's most recent
agreement is for the installation of a 275-channel CTF MEG™ functional brain
imaging system at Nanjing Brain Hospital, Nanjing, China.
The system for Nanjing Brain Hospital was installed and accepted in February. It
represents VSM's third MEG order for China and the first involving a 275-channel
system. VSM's initial sale to China, in 2003, was a 151-channel system for
Tiantan Hospital, Beijing. The other sale, also a 151-channel system, was
announced in November 2005 and is scheduled to be delivered and accepted in the
second quarter of 2006 to Xinan Hospital, Chongqing, China. No other MEG
manufacturer has more than a single system in China.
"Nanjing Brain Hospital, as one of the top mental health care facilities in
China, will help to spread interest in MEG in the Chinese medical community,"
said Jack Price, VSM's President and Chief Executive Officer. "We have clearly
achieved significant momentum for long-term growth in China’s large and emerging
MEG market, which is entirely for clinical purposes."
VSM was awarded the order in late 2005 but waited for customer acceptance before
disclosure because the contract has longer payment terms and consequently more
risk than VSM's traditional MEG sales. VSM believes the additional risk is
justified because Nanjing Brain Hospital is internationally recognized for its
excellence in neurology and the installation will lead to additional sales in
Asia. Consistent with VSM's conservative accounting practices, VSM will
recognize revenue from the Nanjing installation in the third quarter of 2006
with the associated gross margin recognized in stages over approximately two
years starting with the third quarter of 2006.
MEG, because it uses a non-invasive approach in an environment that is
comfortable for the patient, is gaining medical acceptance worldwide for the
real-time, high-resolution mapping of brain function. MEG, long recognized as a
leading-edge research tool, is increasingly in demand in the much larger
clinical market for the diagnosis and treatment of neurological disorders.
Return
to industry news releases |
