Bio-Imaging Technologies, Inc.: Picture perfect

When it comes to the medical imaging services required to complete pharmaceutical clinical research, Bio-Imaging Technologies, Inc. (Nasdaq: BITI) has an unbeatable image.

Over the past 17 years, Bio-Imaging Technologies has become the largest independent provider of the equipment and technology needed for medical imaging used in the pharmaceutical industry’s clinical trials. Within the alphabet soup of CT, MRI, PET and DEXA, to name a few, Bio-Imaging Technologies has developed the reputation of a Grade A performer among contract research organizations.

The same holds true for Bio-Imaging’s stock. While the share price has trended lower since hitting an all-time high in late November, the company’s recent solid results have given investors reason to expect more from the Newtown, Pa., company.

Of five analysts surveyed by Thomson Financial, three have Bio-Imaging as a “buy,” and two rate it a “strong buy.”

Not bad for a microcap with a market capitalization of around $99 million.

As big pharma looks for ways to cut costs, one favorite technique has been to outsource functions. Having a third party handle the costly and time-consuming activities involved in getting a drug ready for FDA approval on the path to the marketplace is becoming more popular.

That’s where Bio-Imaging Technologies steps in. Founded in 1990, the company saw its shares hit an all-time trading high of $9.95 on Nov. 29. Since then, Bio-Imaging’s shares have bounced lower in the midst of a tumultuous market. Still, the stock remains considerably higher than its 52-week low of $5.75, established May 7. The stock closed at $8.45 on Wednesday.

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