East Ocean Ventures of Singapore and Tianjin Dazhen Asset Management of Tianjin, China, have agreed to acquire 100% of RadLogics. The deal is expected to close in the third quarter of the 2018 calendar year and is subject to customary regulatory approvals and closing conditions.
RadLogics received U.S. Food and Drug Administration (FDA) clearance for its flagship product, AlphaPoint, in 2012. Now called Virtual Resident, the software uses machine learning to assist radiologists in interpreting CT, MR, and x-ray images.
The firms plan to accelerate R&D of the Virtual Resident platform, as well as to ramp up its sales and distribution in both the U.S. and Asia, according to Moshe Becker, CEO of the company.
"These two funds have substantial footprints among healthcare providers and distributors in Asia," Becker told AuntMinnie.com. "They see a huge opportunity to take our technology and the validation that we have accomplished in the U.S. and leverage that to provide the same kind of solutions in Asia on a much larger scale than what we have done so far."
RadLogics will retain its existing management team and create a new business unit in Asia, Becker said.
The company has also resolved an issue with the FDA in which the agency sent the company a warning letter over content used to describe its products, which was subsequently updated.
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