PALO ALTO, Calif.--(BW HealthWire)--Oct. 27, 1999--
New 5-Year Contract For Supplying Radiotherapy Hardware
and Software To Expanding Network of Cancer Clinics
Has Sales Potential of $50-$75 Million
Varian Medical Systems, Inc. (NYSE:VAR) today announced it has signed a five-year contract with a potential value of $50-$75 million to be the exclusive supplier of radiotherapy equipment to US Oncology, Inc. (Nasdaq:USON).
US Oncology, the largest cancer management company in the U.S., expects to purchase the equipment to upgrade and expand its network of cancer clinics which serve almost one fifth of the cancer patients in the U.S.
Under the contract, Varian Medical Systems, the world leader in radiotherapy systems, will supply its hardware and associated software for radiotherapy facilitating high-resolution IMRT (intensity modulated radiation therapy), a new technique that is showing great promise in the battle against cancer.
The Varian equipment includes its Clinac(R) linear accelerator, Ximatron(R) treatment simulators, portal imagers for verifying treatment accuracy, and multi-leaf collimators for precisely shaping the radiation beam to hit the tumor and avoid healthy tissue.
US Oncology, which is adding 10 to 15 new comprehensive cancer centers per year to its network of cancer clinics, will install Varian Medical Systems equipment in the new clinics and upgrade radiotherapy systems in some existing clinics.
"We are committed to offering our patients the best in cancer care, including high-resolution IMRT," said Dr. Lloyd Everson, President of US Oncology. "As part of this effort, we will install Varian Medical Systems' fully integrated Generation Six line of radiotherapy equipment and software."
US Oncology chose Varian as its exclusive supplier for radiotherapy equipment because of its state-of-the-art technology, a proven record for reliability and efficiency, strong service organization and streamlined installation operation at new clinics. Most of US Oncology clinics already have Varian equipment making it easy to carry out upgrades for new technology as it develops.
Varian Medical Systems supports US Oncology programs for advancing the quality of cancer care through shared research and training within its clinical network.
"We are proud to be a part of US Oncology's ongoing campaign to improve cancer management for its patients," said Richard M. Levy, president and CEO of Varian Medical Systems. "This contract represents continuing faith in our technology as well as confidence in our operations whether it's delivering, installing or servicing this critical equipment. We are pleased to contribute to the development of better radiotherapy techniques through this important program."
Even with promising gains in treatment and survival rates, cancer is expected to become the leading cause of death in the U.S. ahead of heart disease within the next five years. Today, statistics show that one in three people will be diagnosed with cancer during their lifetime and that radiotherapy will be included in the treatment for more than half of them.
US Oncology, with pro forma revenue of approximately $1 billion, is the nation's largest network of physicians, clinicians, nurses, and administrators focused exclusively on oncology. US Oncology currently provides comprehensive management services to over 800 oncologists in 26 states.
The company's services include practice operations management, practice development, facility development, marketing, managed care contracting and information systems management. US Oncology provides these services through local management teams with extensive support from the company's corporate headquarters.