Bristol-Myers to sell medical imaging unit

NEW YORK: Drug developer Bristol-Myers Squibb said on Monday it will sell its medical imaging unit to private equity firm Avista Capital Partners for about $525 million in cash.

The unit makes and sells medical imaging products used during ultrasound and diagnostic procedures. It had been on the sales block since earlier this month, when the company announced a series of restructuring moves.

“As Bristol-Myers Squibb continues to focus on evolving into a next-generation biopharma company, we determined the best way to maximise the value of medical imaging for shareholders was to sell this business and reinvest the proceeds into our pharmaceutical research, development and commercialisation efforts,” said Bristol-Myers chief executive James M Cornelius in a statement.

The medical imaging unit’s biggest product, called Cardiolite, had sales of $408 million in 2006, but the product faces increased generic competition after a key patent expires in 2008.