Oncology and X-Ray products company Varian Medical Systems (VAR - Analyst Report) recently revealed that it has received FDA 510(k) clearance for its Edge radiosurgery offering. This is Varian’s latest system for carrying out radiosurgery using modern and timely movement management and tumor monitoring know-how.
The Edge radiosurgery suite includes several technologies which are approved by the FDA. These components may also be rendered available as upgrades for suitable Varian systems and may be listed as – the Calypso system, the Advanced Motion & Image-Guided Radiotherapy package, the PerfectPitch couch and the Intra-cranial radiosurgery package. The Beacon transponders anchored to Calypso for lung radiosurgery are awaiting FDA 510(k) clearance.
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).
The company 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 is designed to treat tumors with beams of high speed and precision. It incorporates several technological innovations such as patient positioning and managing his/her motion. Given its high intensity nature, TrueBeam can dispense strong dosage over twice as fast as that possible with earlier equipment.
Moreover, Varian continues to post decent results despite the contagion of economic problems in Europe and sustained softness in certain end markets. It enjoys a strong balance sheet marked by low debt and sizeable cash. The company also periodically deploys capital to boost investor confidence via 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, especially in Europe, are significant challenges.
The stock carries a Zacks Rank #3, which translates into a short-term Hold rating. Cantel Medical Corp. and Cyberonics Inc. are Zacks Rank #1 (Strong Buy) stocks which are expected to do well.