In a recent government meeting, a representative from Envigor presented a detailed testimony regarding the company's imaging services contract with IND, highlighting significant concerns over IND's decision to transfer clinical imaging studies to a competitor, Xing Imaging. Envigor, which has been recognized as a premier site for clinical imaging services, claims that IND's move is not based on any quality issues but rather appears to be a strategic effort to undermine Envigor's business in New Haven.
The testimony emphasized that Envigor has been successfully conducting imaging services for the PPMI study, with its New Haven facility achieving the highest number of DAT scans completed and referrals in the nation. Despite this success, IND has indicated plans to terminate Envigor's involvement in certain studies, raising alarms about the potential disruption to ongoing clinical work and the livelihoods of Envigor's employees.
Envigor's representative argued that Xing Imaging has failed to demonstrate a public need for its proposed facility, as Envigor currently has the capacity to handle the projected demand for clinical imaging services in the area. The representative pointed out that Envigor performs around 50 scans per month and can support up to 200 research subjects, while the anticipated growth in demand over the next five years is less than 100 patients per month.
Moreover, concerns were raised regarding Xing's financial viability and operational experience, as the company has not previously operated an imaging facility in the U.S. and is proposing to use refurbished equipment. The testimony also highlighted potential national security risks associated with Xing's ownership by Chinese entities, emphasizing the need for careful consideration of these factors by the Office of Health Strategy.
In conclusion, Envigor's representative urged the government to deny Xing's application, citing a lack of demonstrated need, potential disruption to existing services, and serious national security concerns. The outcome of this matter could significantly impact Envigor's operations and the broader landscape of clinical imaging services in New Haven.