Palo Alto CA-based Varian Medical Systems will acquire Cancer Treatment Services International (CTSI) for $283 million from the private equity firm Texas Pacific Group. Founded by a team of University of Pittsburgh Medical Center (UPMC) doctors and business partners in 2006, privately held CTSI operates cancer care brand American Oncology Institute in sites across South Asia, with a flagship hospital in Hyderabad, India. In addition to American Oncology Institute, CTSI operates a reference laboratory and pathology provider, AmPath, guided by UPMC’s pathology department.
The deal allows Varian Medical to gain direct access to patient treatment data which it will use to inform its cancer product development. It also enables Varian to expand from a radiation therapy technology supplier to an integrated cancer services provider in emerging markets. The company is a global leader in radiation oncology devices and has a storied history. It has been adding software and related cloud services as part of its offering.
Cancers in the oral cavity and lungs in males, as well as cervix and breast in females account for nearly 50% of all cancer cases in India. Additionally, there are about 2.8 million prevalent cases of all types of cancers while an average of 800,000 new cases of the disease are recorded on an annual basis.
Andrew Shogan, co-founder and executive director, CTSI said, “We are excited to continue our mission to address the growing global incidence of cancer and the disparity in access to treatment between the developed and emerging markets. Together with Varian, we will be better equipped to provide new solutions that empower more patients globally to fight cancer.”
