PALO ALTO, Calif., June 10, 2019 /PRNewswire/ -- Varian (NYSE:
VAR) today announced it has acquired Austin, Texas-based Endocare and Hangzhou, China-based, Alicon, to expand its
portfolio of multidisciplinary integrated cancer care solutions.
Endocare is a leading provider of hardware and software solutions
supporting cryoablation and microwave ablation, and Alicon, a
leader in embolic therapy for treating liver cancer in China.
These acquisitions provide Varian with a leading position in the
high-value interventional oncology segment, which is expected to
grow from approximately $860 million
in 2019 to over $1 billion in
20221. Varian will leverage the existing product
portfolios of both companies as well as the active R&D programs
powered by teams in Austin and
Hangzhou. Consistent with Varian's
vision of a world without fear of cancer and increased global
access to advanced cancer care, these acquisitions will allow the
combined organization to develop innovations in interventional
oncology and provide patients and customers with a wider range of
cancer care solutions delivered through Varian's proven global
platform.
"Together, our acquisitions of Endocare and Alicon are an
important step in Varian's long-term strategy to become a global
leader in multidisciplinary, integrated cancer solutions," said Dow
Wilson, president and chief executive officer of Varian. "We are
confident that the portfolio of products and both companies'
dynamic R&D pipelines will unlock new growth for Varian and
expand our clinical partners' treatment options in the years to
come. Varian is uniquely positioned to create an interventional
oncology platform that combines software and services for treatment
planning with advanced interventional treatment delivery."
"We are excited about the opportunity to join Varian," said
David Chen, chief executive officer
of Endocare and Alicon. "Endocare, Alicon, and Varian share a
common goal of delivering innovative cancer care solutions, and
this transaction will advance a united ability to develop the
solutions necessary to achieve that goal. On a personal note, I am
deeply proud of the products the Endocare and Alicon teams have
developed, and I look forward to expanding our global patient
impact together with Varian."
Endocare's lead product is the Cryocare CS™ System, a
fully integrated planning, placement, and treatment system designed
to simplify cryotherapy. Cryoablation therapy is a specialized
type of cryotherapy for the minimally invasive treatment of a wide
range of cancers, including the prostate, kidney, and lung as well
as liver metastases and palliative intervention.
Alicon's lead product is Caligel, which are calibrated
resorbable gelform particles commonly used as an embolic agent in
China for treating liver cancer.
Alicon has an integrated R&D, manufacturing and
commercialization infrastructure, with over 1,000 major hospitals
in China using the Alicon solution
to treat 200,000 patients annually.
Transaction and Financial Details
Varian is financing the $185
million purchase price using cash and proceeds from
borrowings.
Endocare and Alicon generated combined revenue of $30 million in calendar 2018. Varian expects the
aggregate of these transactions to have an immaterial impact on
fiscal year 2019 financial results, and the combined interventional
oncology platform to be accretive to GAAP and Non-GAAP earnings per
share in fiscal 2020.
Conference Call
Varian will hold a teleconference on June
11 at 8:30 a.m. ET to discuss
the acquisition. To access the live webcast or replay of the call,
visit the Investor Relations page on our website at
www.varian.com/investors. To join via phone, dial
1-877-407-9708 inside the U.S. and 1-201-689-8259 outside the U.S.
The replay can be accessed by dialing 1-877-660-6853 from inside
the U.S. or 1-201-612-7415 from outside the U.S. and entering
conference ID 13691635. The teleconference replay will be available
through 8:30 a.m. Eastern Time, Thursday, July 11,
2019.
About Varian
Varian is a leader in developing and delivering cancer care
solutions and is focused on creating a world without fear of
cancer. Headquartered in Palo Alto,
California, Varian employs approximately 7,000 people around
the world. For more information, visit http://www.varian.com and
follow @VarianMedSys on Twitter.
Forward Looking Statement
Except for historical information, this news release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements concerning
industry or market outlook, including growth drivers; the company's
future orders, revenues, operating expenses, tax rate, cash flows,
earnings growth or other financial results; and any statements
using the terms "could," "believe," "expect," "promising,"
"outlook," "should," "will" or similar statements are
forward-looking statements that involve risks and uncertainties
that could cause the company's actual results to differ materially
from those anticipated. Such risks and uncertainties include our
ability to achieve expected synergies from acquisitions; global
economic conditions and changes to trends for cancer treatment
regionally; currency exchange rates and tax rates; changes in
third-party reimbursement levels; new and potential future tariffs
or a global trade war; demand for and delays in delivery of the
company's products; the company's ability to develop, commercialize
and deploy new products; the company's ability to meet Food and
Drug Administration (FDA) and other regulatory requirements,
regulations or procedures; changes in regulatory environments; the
effect of adverse publicity; the company's ability to maintain or
increase margins; the impact of competitive products and pricing;
the potential loss of key distributors or key personnel; and the
other risks listed from time to time in the company's filings with
the Securities and Exchange Commission, which by this reference are
incorporated herein. The company assumes no obligation to update or
revise the forward-looking statements in this release because of
new information, future events, or otherwise.
1. Kaiser Associates
Press Contact
Mark Plungy
Director, Global Public Relations
+1 (650) 424-5630
mark.plungy@varian.com
Investor Relations Contact
J. Michael Bruff
Senior Vice President, Investor Relations
+1 (650) 424-5163
investors@varian.com
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SOURCE Varian