Medison Corp. hopes to clutter refrigerators and baby books with multidimensional images of alien-like unborn babies.
The South Korean company, which has its U.S. base in Cypress, makes ultrasound machines that produce 3-D and even 4-D images. Medison is banking on more advanced ultrasound technology to win business in the U.S.
Medison’s machines generate images that allow users to look at the inside and outside of organs and babies in the womb, as opposed to traditional two-dimensional ultrasounds.
“We are the pioneer of this 3-D and 4-D technology,” said Patrick Shin, Medison USA’s president.
The company expects worldwide sales of $300 million this year, according to Shin. U.S. sales are expected to make up about 10% of that.
The challenge for Medison is getting hospitals, clinics and doctors’ offices to buy into its technology. It has a limited selling window as hospitals and others look to replace outdated ultrasound machines.
Then it has to compete with big rivals.
Other ultrasound makers include General Electric Corp., Toshiba Corp., Siemens AG and Royal Philips Electronics NV.
The big companies focus on traditional ultrasound machines. But their size and pull with hospital buying groups make them an obstacle to Medison.
“Many, many people think one ultrasound machine is the same as another ultrasound machine, and really, that’s not at all realistic,” said Dennis Wisher, the company’s director of education and product management.
Medison plans to sell through companies that buy on behalf of hospitals, including Novation LLC of Texas and Premier Inc. of San Diego, said Steven Morris, the company’s national accounts manager.
That will help Medison get its products alongside those from the big guys. The company also has its own sales representatives.
Hospital buying groups can be notoriously difficult to deal with. Medison uses a two-pronged approach, according to Morris.
One prong involves getting in at the end of a contract for an ultrasound machine. Hospital buying groups generally give their suppliers three-year contracts, Morris said. Once a contract is up, a new supplier can submit its devices for consideration.
The second scenario involves what’s called “breakthrough technology,” Morris said. That involves innovative products that buying groups can acquire at any time.
Medison also sells to government hospitals, large medical imaging providers, private hospital chains and what are called “equipment planners,” which plan and procure equipment for hospitals and imaging centers.
The company’s machines, which include the Accuvix and SonoAce, cost $20,000 to $200,000. Wisher called those prices competitive with other ultrasound machines.
The company makes its machines in South Korea, where its research and development is done.
“One of the strong points of Medison is efficient R & D; capability,” Shin said. “We introduce a new model almost every year.”
Medison has about 20 workers at its office on Knott Avenue, including four executives. It has some 700 workers companywide.
The U.S. arm was started in 1992, seven years after Medison formed in South Korea. Medison America was originally based in the Bay area city of Pleasanton and moved to Orange County in 2000.
“There is a hotbed of technology actually in Orange County,” said A. Robert DePalma, director of regulatory and operations. “What that does for us is give us a ready pool of persons that we can draw against without going all over the country.”
