Schedule 13d
| Filed by: | HEALTHINVEST PARTNERS AB |
| Subject Company: | BIO-IMAGING TECHNOLOGIES, INC. |
| Filed as of Date: | 11/12/2008 |
| View Original Filing on Edgar's | |
Exhibit
99.2David E.
Nowicki, Chairman of the Board
and
Marl L.
Weinstein, President and Chief Executive Officer
Bio-Imaging
Technologies, Inc.
826
Newtown-Yardley Road
Newtown,
PA 18940
November 12, 2008
Dear
Messrs. Nowicki and Weinstein:
Healthinvest
Partners AB and Healthinvest Global Long/Short Fund beneficially own, in the
aggregate, approximately 5.3 percent of the outstanding common stock of
Bio-Imaging Technologies, Inc. (the “Company”), making us the second largest
shareholder of the Company.
We are
very frustrated with the recent performance of the Company that has resulted in
a deterioration of shareholder value in 2008. Although the Imaging Services
division, which has grown 19 percent, and the newly acquired Phoenix Data
Systems unit seem to be developing well, the Company’s share price has declined
a catastrophic 66% year-to-date.
We
believe that the source of the problem lies in the CapMed division. Despite
allocating large resources to this loss-making unit for several years,
significant revenues have failed to materialize. For example, in the most recent
quarter, the division posted revenues of a mere $11,000 despite incurring
approximately $776,000 in operating expenses. If the Company had sold CapMed to
a third party or closed it down before the start of this year, the Company’s
operating earnings for the first nine months in 2008 would have been around 43
percent higher without significant impact on revenues.
CapMed is
an expensive development project with no synergies with Imaging Services and
Phoenix Data Systems. If CapMed cannot be sold, it should be closed down. While
the decision to divest or close a division is always difficult, it should now be
evident to the Company’s Board and senior management that CapMed is having a
significant, negative impact on shareholder value, which should be the Board’s
highest priority. Surely, the Company’s Board and senior management agree that
it is imperative that investor confidence in the Company not be undermined any
further. Committing to either divest CapMed or close it down before the end of
2008 would go a long way in this direction.
We would
like to schedule a call with both of you within the next week to take place no
later than November 21, 2008 in order to discuss the issues and proposals raised
in this letter. Please contact me with your availability. I look
forward to hearing from you.
Sincerely,
Anders
Hallberg
CEO and
Managing Director
Healthinvest
Partners AB
Healthinvest
Partners AB
Arsenalsgatan
4, SE-111 47 STOCKHOLM
Tel: +46
(0)8 440 38 30 Fax: +46 (0)8 440 38 39
info@healthinvest.se,
www.healthinvest.se
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