Varian Medical (NYSE:VAR) snagged an $87 million order to outfit the Maryland Proton Therapy Center with 1 of its cancer treatment devices.
The MPTC will be getting Varian’s ProBeam proton therapy system, and Varian plans to book the order in its fiscal 2015 3rd quarter. As a result, Varian said it expects to add $80 million in revenue and about 22¢ of earnings per share to its previous fiscal 2015 guidance.
California-based Varian also said it sealed a 10-year service agreement deal, worth about $65 million, with the revenue to be recorded over the life of the contract.
Varian is an investor in the MPTC, which is in development in Baltimore. Varian committed a $35 million loan to the project through a Swiss subsidiary. Other partners in the project include the University of Maryland and Advanced Particle Therapy of Nevada. Plans call for launching the center before the end of 2015.
Proton therapy can be used for the more precise treatment of some types of cancer and also may elicit fewer side effects.
Meanwhile, Varian is continuing to expand in Georgia. The company announced in March that it will add 100 jobs there over the next 5 years as it expands its footprint with a new facility.
Last year, Varian snatched up Atlanta-based Velocity Medical Solutions, a startup that made software to aggregate treatment and imaging data from cancer patients’ medical records.