Business & Finance
Varian to expand cancer care portfolio via acquisition of Sirtex
30 January 2018 -

Cancer care solutions company Varian Medical Systems (NYSE:VAR) on Tuesday reported an agreement to acquire all the outstanding shares of Sirtex Medical Limited (ASX:SRX) for a purchase price of AUD28 per share in cash or a total equity value of approximately AUD1,585m.

Based in Australia, Sirtex is a global life sciences company focused on interventional oncology therapies. Its lead product is a targeted internal radiation therapy for certain liver cancers. Approximately 80,000 doses of SIR-Spheres Y-90 resin microspheres have been supplied to treat patients with liver cancer at over 1,090 medical centers in over 40 countries. It has manufacturing capabilities in the US, Singapore and Germany.

In addition, Sirtex generated annual revenues of AUD234mm in the fiscal year ended 30 June 2017. It has approximately 300 employees worldwide and maintains sales and distribution operations primarily in the US, Europe and Asia.

This acquisition extends Varian's leadership in radiation medicine, expands addressable market into interventional oncology, consistent with long-term growth and value creation strategy, expects to leverage its capabilities in treatment planning and delivery, image guidance and processing, oncology practice, management software and radiation safety as well as broadens oncology platform to provide customers with a wider range of cancer care solutions.

The transaction, which is expected to close in late May 2018, is subject to the approval of the Sirtex shareholders, the Federal Court of Australia and other customary closing conditions, including applicable regulatory approvals. The acquisition has been unanimously approved by the board of each company.