Varian has signed an asset purchase agreement to acquire the Boston Scientific portfolio of drug-loadable microsphere and bland embolic bead products for treating arteriovenous malformations and hypervascular tumours. The planned acquisition of the drug-loadable microsphere (Oncozene/Embozene Tandem) and bland embolic (Embozene) bead products, a press release reports, will enable Varian to extend its new interventional oncology platform. The press release adds the purchases will also allow the company to benefit from products’ regulatory clearances in more than 35 countries worldwide
However, Varian will not acquire any of the Boston Scientific operations. While Varian implements a plan to manufacture and distribute these products, it will work with Boston Scientific under transition services agreements to ensure uninterrupted delivery to customers.
Varian is financing the purchase price of US$90 million using cash and proceeds from borrowings. The transaction, which is expected to close around August 2019, is subject to the satisfaction or waiver of customary closing conditions, including approval of the US Federal Trade Commission and the closing of the proposed acquisition of BTG PLC by Boston Scientific.
The combined assets generated revenue of US$21.2 million in calendar 2018. Varian expects this transaction to have an immaterial impact on fiscal year 2019 financial results, and the assets to be accretive to GAAP and Non-GAAP earnings per share in fiscal 2020.
Dow Wilson, president and chief executive officer of Varian, comments: “This acquisition from Boston Scientific will strengthen Varian’s growing position in the high-value interventional oncology segment and is consistent with our long-term strategy to become a global leader in multidisciplinary, integrated cancer solutions. We look forward to completing this acquisition and are excited to add these drug-loadable microsphere and bland embolic bead products to our portfolio to provide our clinical partners with expanded advanced treatment options.”