Dive Brief:
- Device maker Varian Medical Systems announced the acquisition of Munich-based humediQ, which makes an automated patient identification, positioning and motion management system for radiation therapy. Terms of the deal were not disclosed.
- Privately held humediQ’s system, called Identify, incorporates a palm reader for patient identification, a radio frequency identification (RFID) reader for proper accessory verification and placement on the treatment couch, automatic synchronization with the oncology information system, and cameras for proper patient positioning and motion monitoring throughout the treatment.
- Varian said the acquisition expands its motion-management portfolio, part of the company’s long-term growth strategy to enable sophisticated, high-quality cancer care.
Dive Insight:
Palo Alto, Calif.-based Varian is the market leader in radiation therapy and is focused on strengthening that position. Some Wall Street analysts, however, have expressed concern about moderating growth prospects for the core business due to a rapidly changing cancer treatment landscape marked by targeted cancer therapies and earlier detection.
Varian itself projects the radiation oncology market is growing at about 4% annually and will be a $6 billion market by 2022. Last year, it spun off Varex, its imaging components business.
Varian has said the greatest need for its radiation therapy products is currently in low- and mid-income countries, where only 10 percent of patients have access to the treatment. The company is expanding its global footprint and has seen order growth in several European countries, Africa, Latin America and the Asia-Pacific region. The introduction of its Halcyon treatment platform targets resource-constrained mature and emerging markets, offering lower price points.
Late last month, the company reported third quarter net profit of $72.5 million on $709 million in revenue, up from $70 million and $633 million in revenue in the year-ago quarter. Results were driven in part by growth in its oncology segment.
