Siemens health deal is a leap of faith
Covid-19 has complicated medical priorities, with spending on cancer treatment technology falling
The aspiration for the biggest medical deal of the year is commendable — to transform cancer treatment so sufferers can live longer and better lives. In pursuit of this goal, German diagnostics group Siemens Healthineers has agreed to pay a high price to acquire US radiotherapy specialist Varian Medical Systems.
Covid-19 has displaced medical priorities this year. Cancer hasn’t gone away, but spending on the technology used to treat it has, at least temporarily. With elective procedures pushed out to make space for coronavirus patients, and hospitals spending heavily on safety measures, Varian’s underlying revenue fell 19% in its most recent quarter. A 14% decline in orders for its oncology systems division was a troubling indication of the future trajectory...
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