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Varian Keeps Up the Winning Streak in Turkey, Expands Base
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Varian Medical Systems Inc is on a roll, winning a string of orders in Turkey. This speaks volumes about the company’s growing clout in the country. Year-to-date, the company has secured orders for more than 20 medical linear accelerators from different Turkish Hospitals. Varian is required to deliver these new systems over the next 18 months.
In March, Varian was selected to provide multiple linear accelerators, including two TrueBeam systems and a VitalBeam device (first in Turkey) to hospitals in the cities of Mersin and Ankara.
Earlier in the year, the Turkish Ministry of Health ordered 14 linear accelerators to equip public radiotherapy centers across the country. Varian's Clinac iX and Trilogy systems were also selected and are set to be installed in public hospitals across Turkey.
Recently, Varian won orders to supply two TrueBeam systems to Losante Hospital in Ankara and a Trilogy system to Ataturk University Hospital in Erzurum.
Notably, more than 175,000 new cancer patients are diagnosed every year in Turkey, which has a population base of 79 million. However, there is an acute shortage of radiotherapy and radio surgery treatment systems in the country, which bodes well for Varian.
The new order wins have helped Varian gain traction in the Europe, Middle East and Africa (EMEA). Gross orders were up 19% (up 23% at constant currency) in the recently concluded second quarter of fiscal 2016.
Varian is also expanding in China. During the quarter, the company opened a regional service center at the Jiangsu province in China. The service center will produce and repair key imaging components for X-ray equipment.
Our Take
We believe China, India, Brazil, the Middle East and Africa present significant top-line growth opportunity to Varian. The company is opening new offices in Africa and the Middle East, which shows that it is aware of the growth opportunities in the region.
Moreover, Varian’s strong product pipeline is a key growth catalyst. Additionally, the planned spin-off of the Imaging Components business will improve the growth profile of the core business, in our view.
Zacks Rank & Key Picks
Currently, Varian has a Zacks Rank #3 (Hold).
Better-ranked stocks in the medical instrument sector include IRadimed (IRMD - Free Report) , Masimo Corp (MASI - Free Report) and Cryolife . All the three stocks sport a Zacks Rank #1 (Strong Buy).
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Varian Keeps Up the Winning Streak in Turkey, Expands Base
Varian Medical Systems Inc is on a roll, winning a string of orders in Turkey. This speaks volumes about the company’s growing clout in the country. Year-to-date, the company has secured orders for more than 20 medical linear accelerators from different Turkish Hospitals. Varian is required to deliver these new systems over the next 18 months.
In March, Varian was selected to provide multiple linear accelerators, including two TrueBeam systems and a VitalBeam device (first in Turkey) to hospitals in the cities of Mersin and Ankara.
Earlier in the year, the Turkish Ministry of Health ordered 14 linear accelerators to equip public radiotherapy centers across the country. Varian's Clinac iX and Trilogy systems were also selected and are set to be installed in public hospitals across Turkey.
Recently, Varian won orders to supply two TrueBeam systems to Losante Hospital in Ankara and a Trilogy system to Ataturk University Hospital in Erzurum.
Notably, more than 175,000 new cancer patients are diagnosed every year in Turkey, which has a population base of 79 million. However, there is an acute shortage of radiotherapy and radio surgery treatment systems in the country, which bodes well for Varian.
The new order wins have helped Varian gain traction in the Europe, Middle East and Africa (EMEA). Gross orders were up 19% (up 23% at constant currency) in the recently concluded second quarter of fiscal 2016.
Varian is also expanding in China. During the quarter, the company opened a regional service center at the Jiangsu province in China. The service center will produce and repair key imaging components for X-ray equipment.
Our Take
We believe China, India, Brazil, the Middle East and Africa present significant top-line growth opportunity to Varian. The company is opening new offices in Africa and the Middle East, which shows that it is aware of the growth opportunities in the region.
Moreover, Varian’s strong product pipeline is a key growth catalyst. Additionally, the planned spin-off of the Imaging Components business will improve the growth profile of the core business, in our view.
Zacks Rank & Key Picks
Currently, Varian has a Zacks Rank #3 (Hold).
Better-ranked stocks in the medical instrument sector include IRadimed (IRMD - Free Report) , Masimo Corp (MASI - Free Report) and Cryolife . All the three stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>