Amid job losses and cost cutting measures, Accuray (NSDQ:ARAY) and Siemens AG (NYSE:SI) amended their strategic partnership to allow Siemens to sell CyberKnife products made by Accuray’s recent acquisition, TomoTherapy Inc.
Accuray picked up TomoTherapy for $277 million over the summer, roughly doubling the Sunnyvale, Calif.-based radiosurgery device maker’s footprint in the oncology market.
The west coast med-tech maker has since announced layoffs numbering near 200 people in efforts to reduce costs following the acquisition by eliminating about 5 percent of it workforce.
Siemens, for its part, announced that it would cut up to 2,000 positions from its diagnostics and radiation treatment divisions as it shifts its focus to lower-cost countries.
The European giant’s diagnostics arm, responsible for nearly one-third of sales in FY 2011, lagged in the last two years, despite the $13 billion spent giving it an overhaul.
Underwhelming sales and slumping profitability in diagnostics led Siemens to plan for 400 layoffs over the next 2 years, leaving 1,600 additional jobs in jeopardy in the division.
Siemens announced that it would scale back its radiation therapy business last month, giving rivals Varian Medical Systems (NYSE:VAR) and Elekta AB (STO:EKTA B) a bump on The Street.
The new deal expands distribution rights to allows Siemens to sell TomoTherapy products, including the CyberKnife radiosurgery system, according to regulatory filings.
Both companies got some love on Wall Street today, with Siemens jumping 4.8% to $100.25 and Accuray nearly matching with a 4.6% jump to $4.43 as of about 11:45 am today.
