An alliance between GE Medical Systems and Varian Medical Systems will give their customers more streamlined access to medical imaging and radiation therapy products for cancer treatment, according to company executives.
Under the terms of the agreement announced January 12, the two companies will share in the marketing, sales and distribution of various products in North America, including Varian’s SmartBeam intensity-modulated radiation therapy (IMRT) technology and imaging systems manufactured by GE.
Combining radiation therapy and medical imaging allows physicians to see cancerous activity inside cells and then specifically target areas for radiation. Varian’s SmartBeam provides high-resolution IMRT, in which doses are increased to eradicate tumors with minimal exposure to healthy tissues. GE’s imaging technology can diagnose the chemical and biological differences that are specific to cancer.
"This agreement will focus both of these companies on the goal of seamless IMRT. This technology makes it possible to eradicate cancer through high doses of radiation to small cancerous tissues," said Richard Levy, president and CEO of Varian Medical Systems, which is based in Palo Alto, CA.
"As in all of the alliances that we’ve done in the industry, we always start with the customer in our thinking. The customer and patients have been asking for the harmonization of diagnostic imaging and various therapy treatments," added Jeffrey Immelt, president and CEO of GE Medical Systems of Milwaukee.
The financial details of the agreement were not released, and neither Levy nor Immelt would say what kind of savings customers of both companies could see on imaging and radiotherapy equipment. But they said the deal will save facilities from having to separately source and set up imaging and radiotherapy systems.
Levy pointed out that the market for these combined systems is relatively small, but that oncology departments are becoming more involved in the acquisition of imaging equipment.
"Up to now, most of the diagnostic equipment has been purchased through the radiology department," Immelt said. "Radiation oncology departments will be purchasing more and more to dedicate to their treatment planning."
In addition, there is the potential for growth in ancillary products, such as software enhancements, Levy said. The companies also will be developing a clinically oriented cancer Web site, and will consider broadening their reach to the international market.
The new venture will not affect any contracts that facilities have with either GE or Varian, Levy said. Group purchasing contracts will be reviewed on a company-by-company basis, Immelt added.
By Shalmali Pal
AuntMinnie.com staff writer
January 13, 2000
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