Varian Renews Supply Deal with Toshiba

Varian Medical Systems has renewed a three-year deal with Toshiba Medical Systems to supply medical imaging components. The new agreement is worth about $515 million, the two companies said in a news release.

The deal renews an agreement Toshiba and Varian announced in January 2011, said to be worth about $450 million at that time.

In the meantime, Varian and Toshiba each have invested in the expanding South Korean market for medical imaging products. In 2012, Varian launched its first overseas subsidiary there. Varian Medical Systems Korea is supporting the launch of Varian’s TrueBeam radiotherapy/radiosurgery system in South Korea. Toshiba followed suit, announcing a South Korean subsidiary in March of last year.

Palo Alto, Calif.-based Varian mentioned the deal in a quarterly earnings report in which it also revealed plans to add 120,000 square feet of space to its Salt Lake City, Utah, production facility.

“We are pleased to continue our strong relationship with Toshiba Medical Systems,” Robert Kluge, senior vice president at Varian, said in a statement. “Throughout our long standing relationship Varian and Toshiba have worked closely together to increase the performance of imaging equipment and reduce the overall cost.”

Varian Medical Systems makes radiotherapy devices and imaging equipment.