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Varex Imaging

Varex Imaging Corporation is a leading independent supplier of medical X-ray tubes and image processing solutions. Fr... read more Featured Products: More products

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Varex Imaging Renews Pricing Agreement with Toshiba

By MedImaging International staff writers
Posted on 24 Mar 2017
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Varex Imaging Corporation has renewed its three-year pricing agreement with Toshiba Medical Systems to continue with the supply of its computed tomography (CT) tubes for integration into Toshiba Medical's CT imaging systems for the global market.

Varex designs and manufactures X-ray imaging components used in medical imaging, including tubes, digital flat panel detectors and other image processing solutions. Global OEM manufacturers of medical imaging systems, such as Toshiba Medical, use Varex's X-ray sources, digital detectors, connecting devices and imaging software as components. Under the renewed agreement, which will be effective April 1, 2017, orders will be booked when placed over the three-year term.

CT tube pricing and expected volume ranges as per the renewed agreement are consistent with CT tube purchases made by Toshiba Medical in the past two years under the previous pricing agreement between both the companies. Potential sales of CT tubes associated with the renewed agreement between Varex and Toshiba Medical are estimated to range between USD 345 million to USD 385 million. Additionally, both the companies have entered into a separate one-year pricing agreement under which Varex will supply Toshiba Medical other imaging components, such as digital detectors and high voltage connectors, with annual sales having ranged from USD 20 million to USD 30 million per year.

"The continuation of our four-decades long relationship with Toshiba Medical Systems is a testament to its strength and Toshiba Medical's confidence in our ongoing ability to develop new X-ray imaging component technology that improves performance, contributes to faster time to market and reduces cost as Toshiba Medical introduces a number of next-generation imaging systems over the coming years," said Sunny Sanyal, Chief Executive Officer of Varex. "We look forward to continuing our long-standing relationship with Toshiba Medical now that they are part of Canon and to the prospect of providing Canon with access to our portfolio of X-ray imaging products."

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