07.01.06
$1.2 Billion ($41.3B Total)
Key Executives:
Richard Levy, CEO
Timothy Guertin, President and COO
Elisha Finney, Senior Vice President and CFO
Robert Kluge, Vice President and President, X-Ray Products
Dow Wilson, Executive VP; President, Oncology Systems
No. of Employees: 3,600
World Headquarters: Palo Alto, California
As a leading manufacturer of X-ray tubes and digital image detectors for medical imaging, Varian Medical is doing quite well in the device industry and is the lone new joiner to make Medical Product Outsourcing’s list of the top 30 companies.
It may be tough to pinpoint exactly who was responsible for the success, since former Varian Chairman and CEO Richard Levy decided to retire in 2005. This year, in February, Tim Guertin, president of the company since 2005, added the CEO title to his cache. Along with this major shuffling was the move of Dow Wilson, former CEO of GE Healthcare Information Technologies business, into the slot of president for Varian’s Oncology Systems business.
All major players can be proud of Varian’s performance in 2005, as the company realized 10% growth in sales to reach a total of $1.2 billion.
Revenues were climbing upward all over Varian’s segments. Oncology Systems rose 10% to $1.1 billion, up from $1 billion in 2004, mainly due to strong international sales in Europe, Australia (along with New Zealand) and Japan. Giving a boost to the numbers was the launch of the ARIA Oncology Information System; a new version of the company’s Eclipse software; and the Varian Trilogy Accelerator, a radiation delivery system.
Along with the booming medical imaging market, the company has been capitalizing on the current trend of minimally invasive surgery. As such, sales of the company’s Brachytherapy (radioactive seeding) business increased 28% to $48 million.
Varian’s X-ray Products business also saw record numbers for 2005 with an 18% increase in sales to $195 million, helped by the introduction of 11 new X-ray tubes and by sales of the PaxScan product line. In anticipation of further growth in the X-ray market, Varian is planning to expand its X-ray products manufacturing plant in Salt Lake City, UT.
Numerous FDA approvals and product launches have helped advance Varian’s position in the market. In January 2005, Varian introduced the SG-1590 Tri-focus X-ray Tube, a direct replacement for use in special procedures equipment from Siemens Medical Solutions. Two months later, Varian received FDA 510(k) clearance for the Nasopharynx Applicator Set for Advanced Brachytherapy, designed for the delivery of localized radiation therapy in the upper throat area. In December, the company was cleared to launch its proton therapy eye dose calculation module, which has been made part of the company’s Eclipse treatment planning system.
To meet increasing global demand for its medical linear accelerators, Varian broke ground in Beijing, China with a new manufacturing facility to be run as a foreign-owned enterprise. “This important project expands Varian’s global manufacturing and service capability in the radiation therapy market with the greatest growth potential in the world,” said Guertin. The 134,000-square-foot plant is expected to be completed in March 2007.
In the quest for global success, the company evaluated its acquisition strategy and, in January 2005, added to its portfolio Sigma Micro Informatique Conseil, a supplier of information management software for radiation and medical oncology in cancer clinics and hospitals in France and other European nations. This move offered Varian the opportunity to provide French-speaking and other international clinics with information management technology that can help manage electronic health records for cancer patients. Varian expects the acquisition to yield $7 million in revenue this year.
If this year’s numbers are any indication, look for Varian to keep jumping up the list of top companies in coming years. Second-quarter 2006 net sales for the company reached an all-time record $414 million, up 18% from last year. Gains in the Oncology Systems segment increased by 18% as well, and the X-ray Products business bested all the numbers with a 21% increase.
“The second quarter was marked by strong revenue growth in our Oncology Systems and X-ray Products businesses, with solid contributions from some of our emerging businesses in brachytherapy and flat-panel digital image detectors for filmless X-rays,” said Guertin.
The company’s emerging business in digital image detectors nearly doubled during the quarter, which is on par for the demand in medical diagnostics and other scanning. X-ray tubes, particularly high-power anode-grounded CT tubes, are also adding greatly to Varian’s bottom line.
Varian has been a little more conservative in its expectations for the next quarter and final total 2006 numbers. Still, growth projections are in the 14% range.
Key Executives:
Richard Levy, CEO
Timothy Guertin, President and COO
Elisha Finney, Senior Vice President and CFO
Robert Kluge, Vice President and President, X-Ray Products
Dow Wilson, Executive VP; President, Oncology Systems
No. of Employees: 3,600
World Headquarters: Palo Alto, California
As a leading manufacturer of X-ray tubes and digital image detectors for medical imaging, Varian Medical is doing quite well in the device industry and is the lone new joiner to make Medical Product Outsourcing’s list of the top 30 companies.
It may be tough to pinpoint exactly who was responsible for the success, since former Varian Chairman and CEO Richard Levy decided to retire in 2005. This year, in February, Tim Guertin, president of the company since 2005, added the CEO title to his cache. Along with this major shuffling was the move of Dow Wilson, former CEO of GE Healthcare Information Technologies business, into the slot of president for Varian’s Oncology Systems business.
All major players can be proud of Varian’s performance in 2005, as the company realized 10% growth in sales to reach a total of $1.2 billion.
Revenues were climbing upward all over Varian’s segments. Oncology Systems rose 10% to $1.1 billion, up from $1 billion in 2004, mainly due to strong international sales in Europe, Australia (along with New Zealand) and Japan. Giving a boost to the numbers was the launch of the ARIA Oncology Information System; a new version of the company’s Eclipse software; and the Varian Trilogy Accelerator, a radiation delivery system.
Along with the booming medical imaging market, the company has been capitalizing on the current trend of minimally invasive surgery. As such, sales of the company’s Brachytherapy (radioactive seeding) business increased 28% to $48 million.
Varian’s X-ray Products business also saw record numbers for 2005 with an 18% increase in sales to $195 million, helped by the introduction of 11 new X-ray tubes and by sales of the PaxScan product line. In anticipation of further growth in the X-ray market, Varian is planning to expand its X-ray products manufacturing plant in Salt Lake City, UT.
Numerous FDA approvals and product launches have helped advance Varian’s position in the market. In January 2005, Varian introduced the SG-1590 Tri-focus X-ray Tube, a direct replacement for use in special procedures equipment from Siemens Medical Solutions. Two months later, Varian received FDA 510(k) clearance for the Nasopharynx Applicator Set for Advanced Brachytherapy, designed for the delivery of localized radiation therapy in the upper throat area. In December, the company was cleared to launch its proton therapy eye dose calculation module, which has been made part of the company’s Eclipse treatment planning system.
To meet increasing global demand for its medical linear accelerators, Varian broke ground in Beijing, China with a new manufacturing facility to be run as a foreign-owned enterprise. “This important project expands Varian’s global manufacturing and service capability in the radiation therapy market with the greatest growth potential in the world,” said Guertin. The 134,000-square-foot plant is expected to be completed in March 2007.
In the quest for global success, the company evaluated its acquisition strategy and, in January 2005, added to its portfolio Sigma Micro Informatique Conseil, a supplier of information management software for radiation and medical oncology in cancer clinics and hospitals in France and other European nations. This move offered Varian the opportunity to provide French-speaking and other international clinics with information management technology that can help manage electronic health records for cancer patients. Varian expects the acquisition to yield $7 million in revenue this year.
If this year’s numbers are any indication, look for Varian to keep jumping up the list of top companies in coming years. Second-quarter 2006 net sales for the company reached an all-time record $414 million, up 18% from last year. Gains in the Oncology Systems segment increased by 18% as well, and the X-ray Products business bested all the numbers with a 21% increase.
“The second quarter was marked by strong revenue growth in our Oncology Systems and X-ray Products businesses, with solid contributions from some of our emerging businesses in brachytherapy and flat-panel digital image detectors for filmless X-rays,” said Guertin.
The company’s emerging business in digital image detectors nearly doubled during the quarter, which is on par for the demand in medical diagnostics and other scanning. X-ray tubes, particularly high-power anode-grounded CT tubes, are also adding greatly to Varian’s bottom line.
Varian has been a little more conservative in its expectations for the next quarter and final total 2006 numbers. Still, growth projections are in the 14% range.