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About Varian Medical Systems, Inc.

Varian Medical Systems develops, manufactures, and services hardware and software products for the treatment of cancer with radiotherapy, stereotactic radiosurgery, stereotactic body radiotherapy, proton therapy, and brachytherapy. Products include linear accelerators, simulators, and data management software, primarily for use in cancer radiotherapy. Through recent acquisitions, it now operate a hospital and a network of cancer centers in India and Sri Lanka. It provide cancer care professional services to healthcare providers worldwide and a supplier of a broad portfolio of interventional solutions. The company generates more than 55% outside the US.

Operations

Varian operates in two primary segments -- Oncology Systems and Proton Solutions

The Oncology Systems segment makes hardware and software products for treating cancer with conventional radiotherapy along with products for advanced treatments, including fixed field intensity-modulated radiation, volumetric modulated arc therapy, and stereotactic body radiotherapy. These products include medical linear accelerators, brachytherapy afterloaders, and treatment verification equipment. Its software offerings range from information management tools to systems for patient care management. Oncology Systems accounts for around 95% of Varian's total revenue.

The Proton Solutions segment makes devices that use proton beams to treat cancer. Proton therapy isn't widely used because of its prohibitive cost, but Varian is working to make it more accessible and affordable to customers. The segment brings in nearly 5% of total revenue.

Through its recent acquisition, the company operates Interventional Solutions business offers products for interventional oncology procedures and treatments, including cryoablation, microwave ablation and embolization. It also provide software and remote services for post treatment dose calculation for Yttrium-90 microspheres used in selective internal radiation therapy. It generates a little portion of Varian's revenue.

The company's products line includes Hardware (accounts more than 45% of total revenue), Software (nearly 20%), and its services (accounts 35%).

Geographic Reach

Varian has domestic manufacturing plants in California (Headquartered), Virginia, and Washington; it has international plants in Brazil, Canada, China, Finland, France, Germany, Switzerland, France, and the UK. The company also has hospital and cancer centers in India and Sri Lanka.

The company operates in the Americas (the US, Canada, and Latin America); Europe, including Russia, the Middle East, Africa, and India (EMEA); and the Asia/Pacific region primarily includes East and Southeast Asia and Australia. The US accounts for nearly 45% of its total sales.

Sales and Marketing

Varian's customers include radiotherapy centers and cancer care clinics, oncology practices, physicians' offices, university research and community hospitals, private and governmental institutions, and health care agencies, among others.Varian markets its products worldwide through a combination of direct sales forces in the US and Canada and independent distributors or resellers in other markets.

Financial Performance

The company's revenue increased 10% to $3.2 billion in 2019 compared to $2.9 billion in the prior year. Total product and service revenues increased in fiscal year 2019 over fiscal year 2018, primarily due to an increase in revenues from Oncology Systems. In fiscal year 2019, product revenues also included $19.4 million from their Interventional Solutions business, which is included in the Other category, and service revenues included $19.6 million related to the company's CTSI acquisition, which is included in Oncology Systems.

Net income increased by 94% to $292.2 million in 2019. That rise was due to higher revenue and lower taxes.

The company ended fiscal 2019 with $544.1 million in net cash, about $27.7 million higher than it had at the end of 2018. Operating activities provided $371.8 million that year, while financing activities (primarily the reduction of debt) used $631.7 million and investment activities provided $279.2 million.

Strategy

The company's long-term growth and value creation strategy is to transform the company from the global leader in radiation therapy (also referred to as radiotherapy) to the global leader in multi-disciplinary, integrated cancer care solutions that leverage their strengths, technology, innovation and clinical experience. To achieve these long-term objectives, the company is focused on driving growth through strengthening the company's leadership in radiation therapy, extending its global footprint and expanding into new markets and therapies.

Varian's strategic business plans include expanding its business in regions and countries that are rated as higher risk for corruption activity by Transparency International. Moreover, the company's recent acquisitions of CTSI and Alicon have significantly increased their operations in India and China, respectively.

Mergers and Acquisitions

In 2019, Varian acquired Cancer Treatment Services International (CTSI) for $283 million. Privately held, CTSI operates the American Oncology Institute in Hyderabad and 10 multidisciplinary -radiation, medical and surgical oncology- cancer centers across the Indian subcontinent as well as a U.S.-based Oncology Solutions division that provides cancer care professional services to healthcare providers worldwide. The combined companies will be positioned to create new multidisciplinary solutions based on robust clinical information benefiting oncologists, and ultimately resulting in better care for patients. These fast-growing offerings will allow Varian to expand its solutions, while helping to support the continued growth trajectory of the company's oncology systems business.

Company Background

Varian was established in 1948 as Varian Associates.

Varian Medical Systems, Inc.

3100 Hansen Way
Palo Alto, CA 94304-1030
Phone: 1 (650) 493-4000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: VAR
Stock Exchange: , NYSE
Chairman: R. Andrew Eckert
Vice Chairman: Timothy E. Guertin
President and CEO: Dow R. Wilson
Employees (This Location): 1,710
Employees (All Locations): 10,062

Major Office Locations

Palo Alto, CA

Other Locations

Milpitas, CA
Palo Alto, CA
Washington, DC
Atlanta, GA
Lincolnshire, IL
Ashland, MA
Milton, MA
Las Vegas, NV
Massillon, OH
Pickerington, OH
North Charleston, SC
Salt Lake City, UT
Charlottesville, VA
Gig Harbor, WA
Seattle, WA
Belgaum, India
Bengaluru, India
New Delhi, India
Fukuoka, Japan
Hiroshima, Japan
Kanazawa, Japan
Kyoto, Japan
Morioka, Japan
Nagoya, Japan
Okayama, Japan
Osaka, Japan
Saitama, Japan
Sapporo, Japan
Sendai, Japan
Shizuoka, Japan
Takamatsu, Japan
Jundiai, Brazil
Winnipeg, Canada
Toulouse, France
Haan, Germany
Troisdorf, Germany
Willich, Germany
Singapore, Singapore