Varian to Acquire Accel Instruments

(Palo Alto, CA, USA) has signed an agreement to acquire Accel Instruments, GmbH (Bergisch Gladbach, Germany), a privately-held supplier of proton therapy systems for cancer treatment and scientific research instruments. The acquisition will enable Varian to offer products for delivering image-guided, intensity-modulated proton therapy for selected cancer patients.

Varian will invest approximately US$30 million to acquire 100% of Accel, including its debt. "With this acquisition, we can meet the needs of customers who have begun to ask us for proton therapy capabilities that supplement their existing radiotherapy systems,” said Tim Guertin, president and CEO of Varian Medical Systems. "This leverages our existing technology in treatment planning, image guidance, and cancer informatics, and it enables Varian to offer all the products needed for delivering proton therapy. We expect that we can build a several hundred million dollar proton therapy business over time.”

Accel has commissioned its newly developed superconducting medical cyclotron for proton therapy at the Paul Scherer Institute outside Zurich (Switzerland). Work is nearing completion on another installation at the Rinecker Proton Therapy Center in Munich (Germany), and Varian hopes to complete commissioning that system this year.

Unlike standard photon radiotherapy beams, which pass all the way through the patient's body, proton therapy beams can be designed to stop and distribute most of their radiation dose at the tumor. This makes it possible to improve specific cancer treatments by protecting more healthy tissue and thus reduce short- and long-term side effects in cases where surrounding healthy tissues are particularly sensitive to radiation.

Proton therapy is not widely available because systems and treatments are many times more expensive than for traditional photon radiotherapy. Radiation oncologists estimate that approximately 10% of the patients can benefit from having all or some of their treatment with protons.

Varian anticipates the acquisition will add annualized revenues of approximately $30 million in fiscal year 2007. The business will report to Varian vice president Lester Boeh, who is responsible for managing Varian's portfolio of emerging businesses. The transaction is conditioned upon receipt of certain regulatory approvals, and is expected to close in late January 2007.



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Varian Medical Systems
Accel Instruments