Sirtex

Sirtex Medical Limited is the company on production of devices for intervention targetny radiation therapy of certain cancer diseases of a liver. Sirtex calls itself the market leader of the equipment for a radioembolization (the combined method of cancer therapy of a liver consisting of radiotheraphy and the procedure of an embolization)

The headquarters of Sirtex is located in Australia, and production bases - in the USA, Singapore and Germany; the state totals about 300 employees worldwide. Products of the company extend generally in the United States, Europe and Asia.

History

2018

Sirtex rejected the offer of Varian on purchase and agreed to the transaction with Chinese

In June, 2018  the Varian Medical Systems company announced failure of the transaction on merger of Sirtex Medical because the equipment manufacturer for cancer therapy of a liver accepted the proposal of the Chinese investors.

As the agreement was terminated at the initiative of Sirtex, the company will have to pay to Varian a penalty of about $12 million.

The equipment manufacturer for cancer therapy of Sirtex refused to be on sale Varian and accepted the proposal of Chinese

Owners of Sirtex agreed to sell the company to consortium of the companies led by CDH Investments and China Grand Pharmaceutical and Healthcare Holdings which offered for 20% higher amount, than Varian — about 1.4 billion against 1.2 billion dollars respectively. Varian refused to raise the price.

As the chairman of the board of directors of Sirtex John Eady noted, the offer of CDH in $25.33 for the stock "significantly higher", than at Varian, and is equitable in the best degree to the interests of shareholders. The transaction requires still approval of shareholders and regulating authorities.

As notes Reuters, CDH Investments and China Grand news agency, having purchased Sirtex, will be able to sell technologies of the company in China where, according to World Health Organization, more than a half of cases of cancer diseases of a liver in the world is necessary.

I think that they [CDH Investments and China Grand — a comment of TAdviser] will make much more, than Sirtex itself or together with Varian. We will precisely vote for this transaction — Simon Mawhinney, the director of investments of Allan Gray company which is the second in value shareholder of Sirtex said.

Sirtex represents Australia — the country which proved as the attractive place for the Chinese investments into health care. From 2015 to 2018 the volume of the corresponding transactions reached 5.5 billion Australian dollars (about $4.1 billion at the rate of for June 15), data of KPMG demonstrate.^[1]

Varian Medical Systems buys Sirtex

On January 30, 2018 Varian Medical Systems announced acquisition of a key share block of the Sirtex company focused on intervention therapy of tumoral diseases. The transaction was unanimously approved by Boards of Directors of both companies, and and in Sirtex announced that the independent expert of the company estimated the agreement and considers the transaction profitable to shareholders of Sirtex. The cost of the transaction is $1.3 billion.

Varian purchased the world leader in the field of a radioembolization for $1.3 billion

Acquisition of the world leader in the field of a radioembolization will allow Varian to expand the influence in the field of radiation therapy and the market in the field of intervention oncology and also will be approved with long-term growth strategy of the company.

Are going to integrate the technologies which are used for receiving and image processing and also software development in the field of oncology and radiation safety with the interactive oncological Sirtex platform into Varian. It will allow clients of both companies to expand a range of opportunities of treatment of oncological diseases, the press release says.

This acquisition will become the last step in the long-term strategy of Varian to world leadership in the field of the multidisciplinary integrated opportunities of therapy of malignant new growths — the CEO of Preschool educational Institution Varian Dow Wilson says. — Merge of two companies will expand the market of the Sirtex platform, having made it more available to clinical community. Our companies strive for one goal — to win against oncological diseases, and we look forward to closing of this transaction which will affect life of patients around the world.[2]

Notes