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In a bid to strengthen long-term growth and value creation strategy in the oncology space, Varian Medical announced the acquisition of humediQ Global GmbH. The buyout is likely to expand the company’s patient motion-management portfolio of cancer care solutions.
For investors’ notice, shares of Varian declined almost 2% to close at $111.38 since the news release. The financial details of the acquisition have been kept under wraps. The stock has a Zacks Rank #3 (Hold).
How is Varian Poised to Gain?
Adds New Technology
Varian incorporated humediQ’s coveted IDENTIFY technology — an automated patient identification, positioning and motion management system for radiation therapy. The technology includes a state-of-the-art solution for SGRT (Surface Guided Radiation Therapy) and SGRS (Surface Guided RadioSurgery), automated biometric patient identification along with patient setup verification to ensure safe and effective treatment.
Graphical Expansion
The acquisition is likely to fortify the company’s presence in Germany. With the latest development, Varian’s comprehensive suite of oncology solutions is likely to receive a competitive edge in the global cancer-care space.
Acquisition Spree
Interestingly, Varian is on an acquisition spree since the beginning of 2018. The latest development is in sync with the trend.
Not to forget, Varian incurred acquisition-related expenses of $13 million in the third quarter of fiscal 2018. However, management has been very optimistic regarding the acquisitions.
The company signed an agreement to acquire Sirtex — a Australia-based company focused on interventional oncology therapies — for approximately AUD 1.6 billion in January. In Varian 360 Oncology care management platform, the company acquired Evinance Innovation — a small, privately-held company based in Montreal and specializing in clinical decision support software in February.
Varian’s Oncology Solutions at a Glance
The company offers six high-tech oncology solutions for its patients at the moment. These include Radiosurgery, Radiotherapy, Proton therapy, HyperArc, ARIA OIS and Brachytherapy.
In fact, the Oncology Systems segment has been the most important contributor to net revenues so far (almost 94.1% in the third quarter of fiscal 2018). In the third quarter, revenues totaled $667 million, up 18% year over year. Operating earnings in the segment rose 20% year over year.
Geographically, gross orders in Americas increased 9% on a year-over-year basis. The figure grew 9% on a constsnt-currency (cc) basis. Strong performance in North America boosted sales in the unit. In EMEA, gross orders increased 27% year over year and 21% at cc. In APAC, gross orders increased 7% year over year. Gross orders from APAC grew 9% at cc.
Price Performance
Varian outperformed its industry in a year’s time. The company’s shares have returned 14%, against the industry’s decline of 4.4%.
Inogen has a long-term expected earnings growth rate of 22.5%, while the same for Integer Holdings and The Cooper Companies is at 15% and 10.8%, respectively.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Varian Acquires humediQ, Boosts Motion Management Portfolio
In a bid to strengthen long-term growth and value creation strategy in the oncology space, Varian Medical announced the acquisition of humediQ Global GmbH. The buyout is likely to expand the company’s patient motion-management portfolio of cancer care solutions.
For investors’ notice, shares of Varian declined almost 2% to close at $111.38 since the news release. The financial details of the acquisition have been kept under wraps. The stock has a Zacks Rank #3 (Hold).
How is Varian Poised to Gain?
Adds New Technology
Varian incorporated humediQ’s coveted IDENTIFY technology — an automated patient identification, positioning and motion management system for radiation therapy. The technology includes a state-of-the-art solution for SGRT (Surface Guided Radiation Therapy) and SGRS (Surface Guided RadioSurgery), automated biometric patient identification along with patient setup verification to ensure safe and effective treatment.
Graphical Expansion
The acquisition is likely to fortify the company’s presence in Germany. With the latest development, Varian’s comprehensive suite of oncology solutions is likely to receive a competitive edge in the global cancer-care space.
Acquisition Spree
Interestingly, Varian is on an acquisition spree since the beginning of 2018. The latest development is in sync with the trend.
Not to forget, Varian incurred acquisition-related expenses of $13 million in the third quarter of fiscal 2018. However, management has been very optimistic regarding the acquisitions.
The company signed an agreement to acquire Sirtex — a Australia-based company focused on interventional oncology therapies — for approximately AUD 1.6 billion in January. In Varian 360 Oncology care management platform, the company acquired Evinance Innovation — a small, privately-held company based in Montreal and specializing in clinical decision support software in February.
Varian’s Oncology Solutions at a Glance
The company offers six high-tech oncology solutions for its patients at the moment. These include Radiosurgery, Radiotherapy, Proton therapy, HyperArc, ARIA OIS and Brachytherapy.
In fact, the Oncology Systems segment has been the most important contributor to net revenues so far (almost 94.1% in the third quarter of fiscal 2018). In the third quarter, revenues totaled $667 million, up 18% year over year. Operating earnings in the segment rose 20% year over year.
Geographically, gross orders in Americas increased 9% on a year-over-year basis. The figure grew 9% on a constsnt-currency (cc) basis. Strong performance in North America boosted sales in the unit. In EMEA, gross orders increased 27% year over year and 21% at cc. In APAC, gross orders increased 7% year over year. Gross orders from APAC grew 9% at cc.
Price Performance
Varian outperformed its industry in a year’s time. The company’s shares have returned 14%, against the industry’s decline of 4.4%.
Key Picks
A few better-ranked stocks in the MedTech space are Inogen Inc (INGN - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and The Cooper Companies (COO - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 22.5%, while the same for Integer Holdings and The Cooper Companies is at 15% and 10.8%, respectively.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>