BusinessWeek Investor -- Inside Wall Street
New Partners for CardioDynamics
For a tiny medical-device maker with a market cap of $211 million, CardioDynamics International (CDIC) has attracted a behemoth, General Electric, which last summer acquired warrants allowing it to buy as much as 5% of the company through its GE Marquette Medical Systems unit. Now the word is that another major company, Agilent Technologies, is poised to team up with CardioDynamics. A source close to the company says Agilent may also buy a stake in CardioDynamics, which makes a noninvasive patented device called BioZ Systems for monitoring and measuring cardiac functions in hospitals or outpatient settings. CardioDynamics technology is an alternative to the more expensive technique of surgical catheterization of the heart.
The pact with GE allows Marquette to sell CardioDynamics' devices to hospitals in the U.S. and overseas. In Agilent's case, CardioDynamics will integrate its BioZ technology with Agilent's bedside monitors that it sells to hospitals. Agilent has some 60% of the 300,000 monitors installed beside hospital beds. GE has 25%. And CardioDynamics' system will also be integrated in GE's own monitors at hospitals.
CardioDynamics stock has been pummeled this year, along with that of other medical-device makers. Jeffrey Kraws of Gruntal rates the stock, now trading at 4 5/16, a buy, with a 12-month target of 16. Analyst Andreas Dirnagl of Gerard Klauer Mattison expects the company to turn profitable next year, on revenues of $25 to $28 million.By Gene G. MarcialReturn to top
Return to top