Amersham Health is applying Big Pharma marketing and R&D strategies to the traditionally stodgy, highly price-sensitive field of diagnostic imaging contrast agents. It has been far more aggressive than competitors in working to make innovation the basis of competition. But some analysts question whether the company can maintain near-to-mid-term growth as it awaits results of its risky, long-term effort in molecular imaging.

Point Biomedical is developing a third-generation ultrasound contrast agent before second-generation agents have been successfully adopted. But as a small company, it must make choices about what it can realistically handle and what it can't--thus it is purusing a second business in acoustic drug delivery, but passing on urological and surgical applications of its biomaterials technology.

Biomaterials. Point Biomedical's expertise is in biodegradable polymers, tailored for {in vivo} residence time, biological reactivity and tissue integration properties. The company is developing ultrasound contrast agents, a urological drug delivery implant, and surgical adhesives with improved handling and tissue integration properties.

Thanks to the continued conversion of customers to non-ionic contrast media, the market for contrast agents exploded to phenomenal heights in the last decade. But with growth slowing, manufacturers are looking to cement their grip on distribution channels through big acquisitions.