* Says price in Brazil tender became "unsustainable"
* Elekta, Varian and Best Theratronics were bidding for
* Elekta shares fall 2.8 percent
STOCKHOLM, Oct 22 Swedish medical technology
firm Elekta has bowed out of a tender to supply
Brazil with 80 linear accelerators used to treat cancer as the
price in the reverse auction became too low, the company said on
The tender, the biggest of its kind ever, has been a
recurring theme at report presentations of both Elekta and its
larger U.S. competitor Varian, which was also bidding in
the auction, for more than a year.
Elekta shares were down 2.8 percent at 1054 GMT.
Brazil's Ministry of Health said last week Elekta, Varian
and Canada's Best Theratronics were participating in the tender.
The price for the machines, including customer service and
support as well as software, had gone below 120 million
Brazilian reais, or around $55 million, including 5 percent in
tax, Elekta said. A linear accelerator usually costs well above
"We decided we had to decline participation in this tender
when the price went to unsustainable levels," Elekta chief
executive Tomas Puusepp said in a statement.
Though a prestigious contract win in an emerging market
where both Elekta and Varian are seeking to expand their
footprint, a deal with Brazil's Ministry of Health was never
seen as highly profitable.
"Let's just say you're not going to like the gross margin in
Brazil," Varian Chief Financial Officer Elisha Finney said at a
conference call earlier this year. "You're not going to be happy
if we lose, and you might not be happy if we win."
Around 1,000 linear accelerators, which emit high energy
beams of radiation to kill off cancer tumours, are sold globally
The purchase of the 80 machines is part of a Ministry of
Health programme to boost prevention, diagnosis and treatment of
cancer in the country worth around 500 million reais in total.