Renewal of a previous
pricing agreement
pricing agreement
Varex inks CT tube deal with Toshiba worth up to $385 million
March 23, 2017
by Lauren Dubinsky, Senior Reporter
Toshiba Medical Systems announced on Wednesday a renewed three-year pricing agreement with Varex Imaging Corporation for CT tubes.
The prices and expected volume ranges of the CT tubes are consistent with the purchases made under the previous pricing agreement, meaning the value of the CT tube sales is expected to be in the range of $345 million to $385 million.
Varex — a manufacturer of X-ray imaging components including tubes, digital flat panel detectors and other image processing solutions — completed its spin-off from Varian Medical Systems earlier this year.
In addition to the CT tube agreement, Varex also has a one-year pricing agreement with Toshiba to supply other imaging components such as digital detectors and high voltage connectors. Annual sales of these components have ranged from $20 million to $30 million.
In December, 2016, Canon purchased Toshiba’s medical unit for over $6 billion. In the beginning of 2018, its name will be changed to Canon Medical Systems Corp.
"We look forward to continuing our long-standing relationship with Toshiba Medical now that they are part of Canon, and to the prospect of providing Canon with access to our portfolio of X-ray imaging products," Sunny Sanyal, CEO of Varex Imaging Corporation, said in a statement.
The prices and expected volume ranges of the CT tubes are consistent with the purchases made under the previous pricing agreement, meaning the value of the CT tube sales is expected to be in the range of $345 million to $385 million.
Varex — a manufacturer of X-ray imaging components including tubes, digital flat panel detectors and other image processing solutions — completed its spin-off from Varian Medical Systems earlier this year.
In addition to the CT tube agreement, Varex also has a one-year pricing agreement with Toshiba to supply other imaging components such as digital detectors and high voltage connectors. Annual sales of these components have ranged from $20 million to $30 million.
In December, 2016, Canon purchased Toshiba’s medical unit for over $6 billion. In the beginning of 2018, its name will be changed to Canon Medical Systems Corp.
"We look forward to continuing our long-standing relationship with Toshiba Medical now that they are part of Canon, and to the prospect of providing Canon with access to our portfolio of X-ray imaging products," Sunny Sanyal, CEO of Varex Imaging Corporation, said in a statement.