Varian to Acquire MeVis Medical to Add Image Processing Software to Varian’s Detection of Cancer Technology

Varian Medical Systems (Palo Alto, CA, USA) intends to submit an offer to acquire MeVis Medical Solutions, AG (Bremen, Germany), a company that provides image processing software and services for cancer screening.

MeVis develops novel software for the analysis and processing of image data which is marketed to imaging equipment manufacturers for screening breast cancer as well as lung, liver, prostate, and colon cancer. The acquisition would also include the proprietary MeVisLab software platform, a research and development environment facilitating the efficient realization of tailored software solutions using a rapid prototyping approach. MeVis software for breast cancer screening has been sold to some 10,000 clinics worldwide. Varian’s imaging components business is a global provider of X-ray tubes, flat-panel detectors, and image processing software and workstations for digital imaging.

“Varian is excited to add cancer screening software to its portfolio of imaging components solutions for diagnostic imaging manufacturers,” said Dow Wilson, CEO of Varian Medical Systems. “Early detection and treatment of tumors can have a significant impact on outcomes for cancer treatment and we are looking forward to the prospect of adding advanced software for early cancer detection to our product portfolio.”

“We believe we can integrate MeVis technology to offer our customers smarter flat-panel detectors and imaging workstations for cancer screening,” said Sunny Sanyal, president of Varian Imaging Components. “This would enable us to help equipment manufacturers get new life-saving diagnostic products to market faster.”

A US National Lung Screening Trial showed a 20% drop in mortality due to early computed tomography (CT) screening. It is estimated that in 2014, 224,000 cases of lung and bronchus cancer will be detected in the United States, with a five-year survival rate of only 17%. Recently, the US Centers for Medicare & Medicaid Services (CMS) issued a proposal to start reimbursing for CT scans for people with a high risk of developing lung cancer. It is estimated that about eight million patients could become eligible for this screening.

Following the acquisition, the MeVis team would continue to develop cancer screening and image processing applications at its current facility in Bremen, where it would operate as a center of excellence within Varian’s Imaging Components business, which is headquartered in Salt Lake City, Utah. “This is a talented group of people who would make a valuable addition to the Varian team,” Mr. Sanyal said.

Varian plans to file its tender document according to German law in mid-January 2015, and formally launch the tender offer after approval of the tender document by the German Financial Supervisory Authority. The acquisition is expected to be completed in April 2015.

Varian Medical Systems, Inc. is a world-leading manufacturer of medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, and brachytherapy. The company supplies informatics software for managing comprehensive cancer clinics, radiotherapy centers and medical oncology practices. Varian is a supplier of X-ray tubes, digital detectors, and image processing workstations for X-ray imaging in medical, scientific, and industrial applications and also supplies high-energy X-ray devices for cargo screening and non-destructive testing applications. Varian Medical Systems employs approximately 6,800 people who are located at manufacturing sites in North America, Europe, and China, and approximately 75 sales and support offices worldwide.

MeVis is a developer and provider of medical imaging software with focus on dedicated, disease-oriented clinical applications. Over the past few years, there has been an enormous increase in the complexity and volume of medical imaging data derived from diagnostic imaging processes such as digital mammography, CT, magnetic resonance imaging (MRI), and ultrasound (US). MeVis’ products analyze and process these data in such a way as to provide medical professionals with crucial information for early detection, diagnosis and intervention in the areas of cancer and lung diseases as well as neurologic disorders. The company develops its software solutions in close consultation with world leading medical experts and original equipment manufacturers (OEMs) in the medical technology sector and primarily markets this software via these partnerships.

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Varian Medical Systems
MeVis Medical Solutions