Nucletron separates from Delft; looks towards half-billion-dollar mark
This article was originally published in Clinica
Radiation oncology specialist Nucletron has targeted a three-fold increase in revenue within the next five years, following its recent successful spin-off from parent company Delft Instruments. Over the last few years, Delft has been selling many of its non-core subsidiaries in an attempt to focus on the oil and gas industry. This led to Nucletron proposing a management buy-out. The separation, which took effect from July 1, provides Nucletron with its own share capital and allows the company to progress towards a proposed employee-wide shareholding. Nucletron recorded sales of E120m ($165m) in 2006, but since becoming an independent player situated in the top four radiotherapy companies worldwide, the Dutch firm believes it can close the gap on the top three radiotherapy oncology giants Siemens, Elekta and Varian Medical Systems.
Nucletron CEO David Imperiali told Clinica that the spin-off provided the company with a platform to grow its value. "I think we have a financial plan that is quite modest. I see no reason why we couldn't be a half-billion dollar company in five years' time," said Mr Imperiali.
The firm has a five-year plan based around its brachytherapy technology and the growth opportunity in multi-modality treatments. Nucletron claims to be the world leader in brachytherapy, and even though the technology represents only 5% of all radiotherapy treatments, the company is predicting an increase in the utilisation of radiotherapy, and in turn an increase in brachytherapy use.
Nucletron, based in Veenendaal, is hoping that the increasing trend of multi-modality treatments will also help guide the company towards its growth expectations. "Multi-modality treatment is the way of the future. It used to be that specific different treatments are seen as complimentary we are making our different treatments are seen as complimentary we are making our radiation treatments is the way of the future. It used to be that products open-system to participate in a wider radiation therapy through some of our software products and our brachytherapy and imaging products," said Mr Imperiali. The company is also working with the electronic gaming industry to help develop and improve its cancer imaging software.
With over 50% of its revenues coming from markets outside the US, Nucletron's CEO said the firm will continue to expand its global sales network (the company has sales offices in the UK, Sweden, Italy, France, Spain, Germany, the US, Hong Kong, India and Australia).
Challenges ahead
The spin-off from Delft has attracted the attention of some of the bigger companies, and, as Mr Imperiali explained, has provided the company with a challenge that it would not have necessarily faced under its parent company. "Nucletron has been something of a silent player in the industry. You don't get the great rewards for having a low profile but you avoid many of the risks," he said. One of those risks which the company is facing as a result of being more in the public eye is the poaching of its staff by competitors. However, the firm hopes that its proposed employee-wide shareholding will provide an incentive to staff to stay.
Although the company has received backing from existing investors AlpInvest Partners and Advent Venture Partners, Mr Imperiali stated that the company was leaving its options open to "new private investors, public investors through the stock exchange or industrial investors through a combination with another company in our industry." [email protected]