BMS agrees sales of medical imaging unit

Bristol-Myers Squibb (BMS) and the private equity firm Avista Capital Partners have signed a definitive agreement that will see Avista acquire BMS Medical Imaging (BMS MI) for $525 million (261 million pounds).

The acquisition will see BMS MI operate as an independent company under a new name, subject to regulatory approval.

With the transaction expected to be complete by the end of January 2008, it has already been announced that Don Kiepert, former president of Point Therapeutics, will become the chief executive of the new company.

James M Cornelius, chief executive officer of BMS, indicated the company determined that the best way to maximise the value of Medical Imaging was to sell the business and reinvest the proceeds into its pharmaceutical research, development and commercialisation efforts.

He added: “At the same time, we believe that Medical Imaging can maximise its potential under new ownership and Avista has a proven track record of success in the healthcare field.”

BMS MI is an industry supplier of medical imaging products for nuclear and ultrasound cardiovascular diagnostic imaging procedures.

Earlier this month, BMS and Gilead Sciences announced an expansion to their collaboration with a new agreement to commercialise Atripla.