Merge Healthcare (MRGE) recently decided to widen its scope under its existing agreement with Fysicon, a Netherlands based medical imaging distributor for radiology and cardiology. As per the new deal, both the companies will be able to strengthen and effectively improvise their image management solutions to focus on the BeNeLux (Belgium Netherlands and Luxembourg) market.
Merge is a global developer of healthcare information software solutions that helps prepare more comprehensive electronic record of the patients and deliver related services. Its strong product line for image management is expected to boost Fysicon’s revolutionary image management portal Evocs, which has already been used in 60 million images. This collaboration will introduce a new and customized product Evocs Advanced Webviewer, which will have more sophisticated image review tool
Moreover, this new product will be provided with the VNA (Vendor Neutral Archive) option with image storage capabilities across radiology and cardiology systems. Also Fysicon will adopt Merge’s kiosk technology which will in turn improve the medical imaging procedures. The promotional activity for the new product will take place at the Zorg & ICT Congressin Utrecht, the Netherlands from March 16th to18th.
Fysicon, which holds more than 95% market share in the medical image and report exchange market in the Netherlands, directly distributes Merge’s solutions under the iConnect Access, iConnect VNA and iConnect Kiosk brands. With this new deal, Merge expects to record higher sales from the international market.
Medical imaging market has huge potential, especially with the government’s emphasis on HIT (Health IT) and an ageing population. However, Merge’s growth is highly dependant on advanced imaging solutions for which huge capital investments are needed to be made by hospitals. Moreover the competitive landscape of the HIT market with major peers like GE Healthcare (GE), Siemens (SI) and McKesson (MCK) is creating a tougher ground for Merge’s success.
However the company has taken several initiatives to drive the growth further, especially outside US. In the last reported quarter Merge reported 23% of its revenue from international market.
Also the company has expanded its client base to over 2,200 imaging centers, 800 orthopedic clinics, and 1,500 hospitals and health systems, 1,200 laboratories and 250 OEM partners globally in order to boost the sales further. Moreover, the company is also focusing on the emerging market with its iConnect platform.
We presently have ‘Neutral’ recommendation on Merge.
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