Varian Medical Systems Inc., (NYSE:VAR) agreed to acquire Calypso Medical Technologies Inc. and its tumor-tracking system for $10 million in up-front cash plus undisclosed earn-outs.
Seattle-based Calypso, which makes devices and software to track tumors in real time during radiosurgery and radiotherapy procedures. The deal includes earn-outs pegged to sales over the 30 months after the deal closes, which is expected to occur in early October.
“With Calypso’s technology, Varian will be able to offer cancer treatment centers real-time, non-ionizing tumor tracking tools for enhancing the precision of their treatments,” Varian president & CEO Timothy Guertin said in prepared remarks. “These products are a perfect complement for Varian’s motion management technology, including our TrueBeam platform, respiratory gating and dynamic imaging tools for highly focused radiosurgery. These products should enhance Varian’s growth as we integrate them and make them more broadly available to the clinical community through our global marketing and sales channels.”
Calypso won an investigational device exemption from the FDA for a clinical trial evaluating the technology for tracking lung tumors during radiation treatments. A component of the system, its dynamic edge gating technology, won 510(k) clearance in October 2010. And in January, Calypso reeled in a $6.4 million funding round.
“We are extremely gratified by the confidence and promise of this acquisition by Varian. It provides a tremendous opportunity to leverage our GPS for the Body technology as broadly as possible,” Calypso president & CEO Edward Vertatschitsch added. “Motion management is critical to accurately targeting the cancer so patients can experience the curative benefits of radiation therapy while protecting adjacent healthy tissue. We believe our real-time tracking capabilities will help to close the gap on this clinical challenge and I look forward to joining the Varian team to advance innovations in these areas.”