Back to top

Analyst Blog

Zacks Equity Research

Varian Truebeam for Institut Curie

VAR ARAY

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Varian Medical Systems (VAR - Analyst Report) recently revealed that Institut Curie, a renowned European cancer center which mostly operates in and around Paris, had ordered one NovalisTx piece and three TrueBeam systems, in order to replace obsolete equipment.   

Institut Curie plans to use the new equipment to develop new treatments at its center in Paris. It will also use the incoming machinery to generate new methodologies at its Saint-Cloud unit.  It is expected that the new equipment, ordered around the middle of 2012, will be delivered by Varian sometime between from late 2012 and early 2014.

Founded in 1909, Institut Curie delivers cancer treatment to more than 5,000 individuals each year. It also functions as a significant cancer research outfit in France. It will use the incoming TrueBeam equipment for both research and treatment purposes.  

Varian is a leading manufacturer of integrated radiotherapy systems for cancer treatment, and a premier supplier of X-ray tubes for diagnostic imaging applications. The company operates in a technology-driven environment where success depends on the use of new technology, product development and upgrades. In the radiation oncology market, Varian competes with Accuray (ARAY - Analyst Report).

Varian is poised to increase its market share in radiation oncology. It currently enjoys a healthy demand for its coveted TrueBeam technology, which has meaningfully contributed to its net order oncology growth. Varian’s TrueBeam was created to treat tumors with beams of high speed and precision. It incorporates several technological innovations such as positioning the patient and managing his/her motion. It can dispense dosage roughly four times faster than that possible with earlier equipment. NovalisTx similarly permits medical practitioners engaged in radiosurgery to provide strong doses to lesions and tumors in less than half a dozen sittings.

Moreover, Varian enjoys a strong balance sheet marked by low debt and sizeable cash. The company uses a part of its healthy cash flow for share repurchases.

However, Varian competes with larger players in a technology-intensive industry. Further, uncertainties stemming from health care reform and a still-weak hospital capital spending environment across many developed countries in Europe, are significant challenges.

We are currently ‘Neutral’ on Varian. The stock retains a Zacks #4 Rank, which translates into a short-term Sell rating.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
GENERAL FINA GFN 8.20 +5.67%
QIHOO 360 TE QIHU 91.57 +4.38%
VIPSHOP HOLD VIPS 140.01 +3.49%
INVEST TECH- ITG 19.16 +3.34%
VERTEX ENERG VTNR 7.38 +3.07%