Varian to buy Australia’s Sirtex for $1.3 billion

Bloomberg

Varian Medical Systems Inc. agreed to buy Australia’s Sirtex Medical Ltd. for about $1.3 billion in a bid by the US company to add radiation medicine to its portfolio for cancer treatments.
Sirtex investors will receive A$28 in cash for each share, Palo-Alto, California-based Varian said in a statement. That’s 49 percent higher than the stock’s latest closing price in Sydney. Sirtex directors unanimously backed the offer, following multiple unsolicited proposals to acquire the company from other parties, according to a Sirtex statement.
“This acquisition is the latest step in Varian’s long-term strategy to become a global leader in multi-disciplinary integrated cancer-care solutions,” Dow Wilson, Varian’s CEO, said.
Sirtex specialises in treatment for liver cancer. Its lead product is called SIR-Sphere, radioactive beads that target high doses of radiation to liver tumors. The therapy is approved in the US, the European Union and Australia, according to Varian. Sirtex has manufacturing capabilities in the US, Singapore and Germany.
Founded by a group of scientists, Varian has about 6,500 employees and mainly sells equipment for radiotherapy, radio-surgery and proton therapy that uses proton beams to irradiate cancerous tumours.
Sirtex’s shares have risen more than 30 percent in the past 12 months, having recovered from a plunge in May when a study showed its internal radiation therapy failed to extend life longer than conventional treatment in certain cancer patients. Andrew McLean took over as CEO in June, after Gilman Wong was dismissed early in the year after a company investigation into his sale of Sirtex shares.
Growth for Sirtex may come from the Asia-Pacific region, where research indicates SIR-Spheres may be more beneficial and have fewer side effects than conventional treatment.