Varex Imaging inks 3-year supply deal with Toshiba Medical

Varex Imaging (NSDQ:VREX) said today it inked a renewed 3-year pricing agreement with Canon‘s (NYSE:CAJ) Toshiba Medical subsidiary.

Through the deal, Salt Lake City, Utah.-based Varex Imaging will supply Toshiba Medical with its computed tomography tubes for integration into its CT imaging systems. The agreement is set to take effect April 1.

“The continuation of our four-decades long relationship with Toshiba Medical Systems is a testament to its strength and Toshiba Medical’s confidence in our ongoing ability to develop new X-ray imaging component technology that improves performance, contributes to faster time to market and reduces cost as Toshiba Medical introduces a number of next-generation imaging systems over the coming years. We look forward to continuing our long-standing relationship with Toshiba Medical now that they are part of Canon and to the prospect of providing Canon with access to our portfolio of X-ray imaging products,” Varex Imaging CEO Sunny Sanyal said in a press release.

Varex Imaging said it estimated the potential sales from the agreement to be between $345 and $385 million.

The company said it also has a 1-year pricing agreement with Toshiba Medical for other imaging components including digital detectors and high voltage connectors.

Last week, Toshiba Medical said it won FDA 510(k) clearance for its Aplio i900 cardiovascular ultrasound system and launched the device in the US.

The Tustin, Calif.-based medical subsidiary said the Aplio i900 is designed to allow clinicians to assess myocardial function or quantify complex valvular lesions with a greater depth and detail than previous versions.

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