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Varian Medical Systems’ (VAR - Analyst Report) share price rose nearly 1% on Sep 20 following the announcement that the company will complete the first two planned installations of its Edge Radiosurgery Suite in Europe and the U.S. The Radiosurgery Suite is designed to perform advanced radiosurgery using real-time tumor tracking technology and motion management capabilities.

In Europe, the system will be installed at the Champalimaud Foundation in Lisbon, Portugal and in the U.S., it will be installed at the Henry Ford Health System in Detroit, Mich. It will meet the need for high-precision stereotactic ablative radiotherapy for treating and eliminating tumors.

Varian will also launch The Edge Advisory Board to help clinicians perform the procedures. Through this board, VAR will provide clinical education by partnering with leaders in radiosurgery, including neuro- and thoracic surgeons as well as radiation oncologists.

Varian is poised to increase its market share in the radiation oncology market as international markets are under-equipped to address the growing incidence of cancer. Last month, the company received an order for 20 TrueBeam machines from NHS Supply Chain for NHS hospitals across the U.K.

Varian's TrueBeam system has been integrated with a host of new technical innovations that includes synchronized imaging, patient positioning, motion management and treatment delivery during a radiotherapy or radiosurgery procedure.

NHS hospitals, spread across the U.K., will benefit from this order as they will get a chance to replace and modernize their base of 300 linear accelerators (100 of these are more than ten years old) with a more advanced and accurate treatment system.

Varian Medical Systems posted third-quarter fiscal 2013 net earnings of $1.03 per share, beating the Zacks Consensus Estimate by a couple of cents. Earnings were better than the year-ago level of 96 cents and the company’s previously announced guidance of 98 cents to $1.02 per share for the reported quarter.

Revenues increased 3% year over year to $726.2 million, which were, however, well short of the Zacks Consensus Estimate of $753 million. It also missed VAR’s expectations of 7% sales growth in the quarter.

Following the third quarter, Varian revised its expectations for fiscal 2013. Moving ahead, the company envisages revenues to grow by about 5% for fiscal 2013 compared with the prior outlook of 8% sales growth.

Currently, VAR retains a Zacks Rank #3 (Hold). Other medical instruments stocks such as Cynosure, Inc. (CYNO - Snapshot Report), Delcath Systems, Inc. (DCTH - Snapshot Report), and Echo Therapeutics, Inc. (ECTE - Snapshot Report) are worth a look at this moment. All of them carry a Zacks Rank #2 (Buy).

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