Israeli medical imaging company Nanox Imaging Ltd. (Nasdaq: NNOX) has announced that it has entered into an agreement to acquire Israeli medical artificial intelligence (AI) developer Zebra Medical Vision for $100 million upfront, and up to another $100 million tied to milestones - in an all share deal.
Nanox also announced today that it has entered into a binding letter of intent to acquire USARAD and its related company, Medical Diagnostics Web, or MDW. USARAD operates a global network of 300 radiologists. Total consideration for USARAD and MDW is $30 million, comprising $21 million of Nanox shares and $9 million in cash. Nanox says that these two agreements intended to create a globally connected, end-to-end radiology solution.
Nanox sees the acquisition of Zebra Medical Vision helping to achieve both companies’ shared goal of forming the next generation of AI-enabled hardware and software devices, to set a new standard in the medical devices sector. Nanox will address three major international shortages: the shortage of medical imaging devices, radiologists, and connectivity between countries and societies in analyzing medical data.
Founded in 2014, Zebra Medical Vision has pioneered AI in radiology. The company has 7 FDA-approved and 10 CE-marked AI solutions for medical imaging, with a recently introduced 3D modeling solution for x-ray images used for orthopedic surgery pre-operative planning. Using patient imaging data already available to the healthcare system, Zebra-Med’s algorithms highlight early, previously undetected signs of common chronic diseases. The newly discovered findings can then initiate further medical assessment to establish individual preventative care pathways for patients.
Zebra Medical Vision CEO Zohar Elhanani said, "Zebra Medical Vision has always operated with the goal of expanding the use of AI in medical imaging to improve health outcomes for patients worldwide. At this time, we understand that that vision is best served by joining forces with a trusted partner with the means to boost our capabilities and propel population health, powered by AI, to the next level. Screening populations to detect and treat chronic disease early has proven to improve outcomes, and we’re thrilled to be taking the helm of the population health transformation in healthcare."
"With this industry-leading focus, Zebra-Med has set its own path in enabling financial incentives for wide adoption of AI in radiology, recently receiving the first CPT reimbursement code for its solution involving the early detection of Osteoporosis. Together with Nanox, the company will continue to advance value-based population healthcare management on a large scale, pioneering tomorrow’s medical imaging AI and to detect chronic diseases by offering AI applications as part of a modality solution, targeting both payers and providers."
Zebra-Med will be run as a wholly owned subsidiary under the Nanox brand.
Nanox chairman and CEO Ran Poliakine said, "Expanding access to medical imaging via widespread deployment of the Nanox.ARC solves one of the obstacles to achieving true population health management. Yet, the global shortage of trained radiologists represents a significant bottleneck in the imaging process. The Nanox.ARC, together with the acquisitions of Zebra Medical Vision and USARAD, if consummated, would move us toward our vision of deploying our Systems and have the support of a large network of radiologists empowered with highly advanced AI algorithms that will allow for the rapid interpretation of medical images into actionable medical interventions, which would represent an end-to-end, globally connected medical imaging solution. Furthermore, we are working to offer a solution even greater than that: population preventive health care through application of Zebra’s AI technology."
Nanox was represented in the deals by Advs. Ian Rostovsky and Ido Hazan of Amit, Pollak, Matalon & Co law firm.
Nanox's share price is down 15.5% on Nasdaq at $25.47, giving a market cap of $1.213 billion.
Published by Globes, Israel business news - en.globes.co.il - on August 10, 2021
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