Escalon Medical Buys Sonomed

Escalon Medical Corp. (Wayne, PA) has acquired Sonomed Inc., a privately-held manufacturer of ophthalmic ultrasound diagnostic devices. The purchase price was approximately $12.5 million in cash.

Sonomed (Lake Success, NY) offers A, B and Pachymeter ultrasound systems to measure the eyes and detect and examine abnormalities. The company's products are benefiting from the growth in refractive and cataract surgery and intraocular lens implants. Sonomed is profitable, with 1999 revenue of approximately seven million dollars, and will be run as a subsidiary of Escalon Medical. Existing management will remain at the company.

Escalon Medical also announced that it has discontinued the Phase I human clinical trial for Ocufit SR, the company's ophthalmic drug delivery system, which was being jointly developed with West Pharmaceutical Services, Inc. According to the company, results from the clinical trial did not justify the continued investment.

Edited by Ursula Jones