Elscint

Elscint was an Israeli medical-imaging technology company founded in 1969 by Avraham Suhami, a nuclear-physics professor at the Technion–Israel Institute of Technology. It emerged from the technology-investment environment associated with Elron and became one of the most internationally visible Israeli manufacturers of advanced hospital equipment. The company’s name has been explained as a reference either to electronic and scientific technology or to El and scintillation, the latter reflecting its early work with radiation detectors used in nuclear medicine. Elscint initially developed a laboratory nuclear-measurement device, but the limited size of that market led management to redirect the company toward medical imaging. An early nuclear camera intended to detect cancer was not commercially successful. The company then developed the VDP1 gamma scanner, a digital nuclear-imaging system used to monitor radioactive isotopes in the body. The VDP1 became Elscint’s first important commercial success and attracted General Electric, which entered an exclusive North American distribution agreement with Elscint in 1971. The relationship required Elscint to strengthen its engineering, quality-control and manufacturing capabilities. In 1972, Elscint established an international sales and marketing subsidiary in Belgium. The company expanded rapidly during the 1970s and 1980s. It entered computed tomography, began selling its first CT scanner in 1977 and acquired Pfizer’s CT scanner business in 1981. It subsequently broadened its portfolio to include nuclear cameras, ultrasound, conventional and digital X-ray equipment, and magnetic resonance imaging systems. This expansion positioned Elscint as a supplier across several major diagnostic-imaging categories rather than as a specialist in a single modality. By the early 1980s it had operations, factories or research and development facilities in Israel, the United States, England, France and Italy, and employed more than 3,000 people. Elscint was also notable for its role in the development of multi-slice CT. In 1992 it introduced the Elscint CT Twin, described as the world’s first multi-slice CT scanner. The system acquired two images during each gantry rotation, an advance over single-slice systems of the period. Elscint later explored a four-slice design and transferred aspects of its detector technology to Siemens in an arrangement intended to accelerate development. The planned VolumeX system was not produced before the company’s imaging activities were sold. Corporate control changed during the 1990s. In 1990, Elbit Computers, an Elron-affiliated sister company, acquired a majority stake in Elscint. Following the 1996 restructuring of Elbit Computers, Elbit Medical Imaging became Elscint’s holding company. Elron later sold its holdings in Elbit Medical Imaging to Europe Israel, controlled by Moti Zisser, in 1999. During 1999 and 2000, Elscint and Elbit Medical Imaging sold the company’s medical-imaging activities to GE Healthcare and Philips Medical Systems for approximately $600 million. Elscint was delisted in 2005 and became wholly owned by Elbit Medical Imaging. By then, it no longer operated as an independent medical-imaging equipment business. Its historical importance rests in its contribution to Israeli high-technology manufacturing, digital nuclear imaging and the early development of multi-slice CT.

Elscint was established in Israel in 1969 by Avraham Suhami, then a nuclear-physics professor at the Technion. The company was created with encouragement from Uzia Galil, the founder of Elron, and began as an Elron subsidiary. Dan Tolkovsky, then associated with Elron’s parent investment structure, became chairman, while Suhami served as chief executive. The initial investment was approximately $250,000. Elscint’s first project was a nuclear-measurement instrument for laboratory use. Because the worldwide market for that device was very small, the company changed direction and concentrated on medical imaging. Its first medical-imaging product, a nuclear camera designed for cancer detection, did not achieve commercial success. Elscint subsequently developed the VDP1, a digital gamma scanner that tracked radioactive isotopes inside the body. The product became the company’s first commercial breakthrough and generated attention at an industry exhibition in Los Angeles. General Electric responded by signing an exclusive North American distribution agreement with Elscint in 1971. The agreement exposed Elscint to demanding quality expectations and encouraged rapid expansion of its technical and production infrastructure. The company opened its first overseas sales and marketing subsidiary in Belgium in 1972. The same period marked Elscint’s entry into international capital markets. Venture capitalist Fred Adler invested in the company and helped it complete a NASDAQ initial public offering in 1972. Elscint is consequently remembered as one of the first Israeli companies to list on the newly established electronic market. During the middle and late 1970s, management expanded beyond nuclear medicine into computed tomography. After approximately two years of development, Elscint began selling a CT scanner in 1977. The CT business grew quickly. Elscint’s sales increased from approximately $21 million in 1979 to $42 million in 1981, when the company acquired Pfizer’s CT scanner business. By the middle of the 1980s, its CT market share was reported at about 10 percent. Elscint also acquired other businesses and broadened its portfolio to include nuclear cameras, ultrasound, digital and conventional X-ray equipment, and MRI systems. By 1983, the company reported sales of approximately $132 million and employed more than 3,000 people across manufacturing, research and development and commercial sites in Boston, England, Paris, Milan, Jerusalem, Haifa and Chicago. A major technical milestone came in 1992 with the launch of the Elscint CT Twin. It used a two-row detector arrangement to acquire two images for each gantry rotation, making it an early multi-slice CT system. Elscint pursued a four-slice successor and arranged to transfer detector-design technology to Siemens in exchange for access to a gantry and table design. The planned VolumeX platform was ultimately not manufactured before Elscint’s imaging business changed ownership. Elscint’s corporate structure changed in parallel with its technological development. In 1990, Elbit Computers acquired a majority stake. When Elbit Computers was separated into independent companies in 1996, Elbit Medical Imaging became Elscint’s holding company. Elron later sold its interests in Elbit Medical Imaging to Europe Israel, controlled by Moti Zisser, in 1999. The transaction was followed by a broader restructuring of Elbit Medical Imaging around real estate, hotels, shopping and entertainment properties. In 1999 and 2000, Elscint’s medical-imaging operations were sold to GE Healthcare and Philips Medical Systems for approximately $600 million. Elscint was delisted in 2005 and became a wholly owned Elbit Medical Imaging subsidiary. It no longer operated as the independent medical-imaging manufacturer that had made it a prominent Israeli technology company.

• 2005

  Delisting

  [1]Elscinten.wikipedia.org

  Elscint was delisted and became a wholly owned subsidiary of Elbit Medical Imaging.

• 2000

  Medical-imaging activities transferred to major industry buyers

  [1]Elscinten.wikipedia.org

  Elscint and Elbit Medical Imaging completed the sale of their imaging activities to GE Healthcare and Philips Medical Systems.

• 1999

  Elron sells its Elbit Medical Imaging holdings

  [1]Elscinten.wikipedia.org

  Elron sold its holdings in Elbit Medical Imaging to Europe Israel, controlled by Moti Zisser.

• 1996

  Elbit Medical Imaging becomes holding company

  [1]Elscinten.wikipedia.org

  Following the separation of Elbit Computers into independent companies, Elbit Medical Imaging became Elscint’s holding company.

• 1992

  CT Twin introduced

  [1]Elscinten.wikipedia.org

  Elscint introduced the CT Twin, an early two-slice multi-slice CT scanner.

• 1990

  Elbit Computers acquires majority stake

  [1]Elscinten.wikipedia.org

  Elbit Computers, an Elron-affiliated sister company, acquired a majority share in Elscint.

• 1981

  Pfizer CT business acquisition

  [1]Elscinten.wikipedia.org

  Elscint acquired Pfizer’s CT scanner business as it expanded its position in computed tomography.

• 1977

  Entry into computed tomography

  [1]Elscinten.wikipedia.org

  After a development program lasting about two years, Elscint began selling a CT scanner.

• 1972

  NASDAQ initial public offering

  [1]Elscinten.wikipedia.org

  Elscint completed an early Israeli IPO on NASDAQ with assistance from investor Fred Adler.

• 1971

  General Electric distribution agreement

  [1]Elscinten.wikipedia.org

  General Electric entered an exclusive North American distribution agreement for Elscint’s VDP1 gamma scanner.

• 1969

  Elscint is founded

  [1]Elscinten.wikipedia.org

  Avraham Suhami founded Elscint with support from Elron. Suhami became chief executive and Dan Tolkovsky became chairman.

A vertically broad medical-imaging technology company focused on developing and manufacturing diagnostic systems for hospitals, research institutions and clinical imaging markets. At its peak, Elscint positioned itself as an international innovator spanning nuclear medicine, CT, MRI, ultrasound and X-ray.

• Nuclear medicine

  VDP1

  The VDP1 was a gamma scanner used to monitor radioactive isotopes in the human body. Its digital-imaging capability distinguished it from earlier equipment and made it Elscint’s first major commercial success. The product helped establish the company in medical imaging and attracted General Electric as a North American distribution partner.

• Computed tomography · 1977

  Elscint CT scanners

  Elscint entered computed tomography in the 1970s and began selling CT scanners in 1977. The company expanded the business through internal development and the acquisition of Pfizer’s CT scanner operations in 1981. Its CT systems became a central part of the company’s international medical-imaging portfolio.

• Computed tomography · 1992

  Elscint CT Twin

  Introduced in 1992, the CT Twin was an early multi-slice CT scanner. It could acquire two images during each rotation of the scanning gantry, improving acquisition efficiency compared with single-slice systems. It represented Elscint’s major contribution to the transition toward multi-slice CT.

• Computed tomography

  VolumeX

  VolumeX was a planned four-slice CT system developed after the CT Twin. Elscint exchanged elements of its multi-slice detector design with Siemens in an effort to shorten development time. The system was never produced because Elscint’s imaging business was sold before the platform reached commercial manufacture.

• Nuclear medicine

  Nuclear cameras

  Elscint developed and sold nuclear cameras for medical imaging and expanded its nuclear-medicine range after the commercial success of the VDP1. These systems formed one part of the company’s broader effort to supply hospitals with multiple diagnostic-imaging modalities.

• Magnetic resonance imaging

  MRI systems

  During the 1980s, Elscint began developing magnetic resonance imaging systems as MRI became an important new medical-imaging technology. MRI complemented its existing CT, nuclear medicine, ultrasound and X-ray businesses and supported the company’s positioning as a broad diagnostic-imaging supplier.

• Diagnostic imaging

  Ultrasound and X-ray equipment

  Elscint expanded into ultrasound and both digital and conventional X-ray equipment during the 1980s. These lines broadened the company’s hospital product offering beyond cross-sectional and nuclear imaging and enabled it to address more of the diagnostic workflow through a single international supplier.

• 1999

  Sell the medical-imaging activitiesM&A

  Background

  After Elbit Medical Imaging became Elscint’s holding company and its ownership changed, the imaging business was separated from the group’s emerging real-estate and entertainment focus.

  Action taken

  Elscint and Elbit Medical Imaging sold their medical-imaging activities to GE Healthcare and Philips Medical Systems during 1999 and 2000.

  Aftermath

  The transaction ended Elscint’s role as an independent medical-imaging manufacturer and transferred most of its operating activities to major global healthcare companies.

  Reported aggregate sale value. approximately US$600 million (1999–2000)

  Source

• 1992

  Develop multi-slice CT through the CT TwinGeneration change

  Background

  Single-slice CT dominated the market, while multi-slice acquisition promised greater imaging throughput.

  Action taken

  Elscint launched the CT Twin and pursued a four-slice successor, including a technology arrangement with Siemens involving detector and gantry technology.

  Aftermath

  The CT Twin became an important technical milestone, but the planned VolumeX system was never commercially produced before the imaging business was sold.

  • Siemens — Siemens entered the multi-slice CT field using detector-design technology obtained through the arrangement with Elscint.

  Source

• 1975

  Enter computed tomographyStrategy

  Background

  After establishing a business in gamma scanning, Elscint sought to participate in the emerging CT market.

  Action taken

  The company committed to a CT development program and began selling a scanner in 1977.

  Aftermath

  CT became a major growth area and was reinforced by the 1981 acquisition of Pfizer’s CT scanner business.

  Source

• 1971

  Partner with General Electric for North American distributionStrategy

  Background

  The VDP1 attracted General Electric’s attention after being shown at a trade exhibition.

  Action taken

  Elscint and General Electric signed an exclusive North American distribution agreement.

  Aftermath

  General Electric’s quality requirements pushed Elscint to expand its engineering and manufacturing capabilities while giving it access to a major international market.

  Source

• 1969

  Redirect the business from laboratory instruments to medical imagingStrategy

  Background

  Elscint’s initial laboratory nuclear-measurement product addressed a very small market, prompting the company to seek a larger commercial application for its technical capabilities.

  Action taken

  Management shifted development and commercial attention toward nuclear medicine and medical-imaging equipment.

  Aftermath

  The change led to the VDP1 gamma scanner and established the business model that drove Elscint’s subsequent growth.

  Source

1. 1Elscinten.wikipedia.org