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Varian (VAR) Inks Deal With Yonsei Cancer Center in Korea

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Varian Medical Systems, Inc (VAR - Free Report) recently inked a three-year Memorandum of Understanding (MoU) with Yonsei Cancer Center, Yonsei University Health System to partner on research and development projects in the field of radiation therapy and oncology.

Notably, Yonsei Cancer Center is Korea's first cancer hospital (founded in 1969) and one of the leading cancer treatment centers in the world.

This deal should strengthen the global reach of Varian’s Oncology segment.

More on the Collaboration

The signing of this MoU with Varian should strengthen the company’s commitment in the fight against cancer. Yonsei Cancer Center will be working with Varian on AI solutions, which are proven to improve early diagnosis of cancer by more precisely identifying at-risk patients, enhancing the treatment planning and predicting patient outcomes.

Notable Developments

In September 2020, management announced that the company received Germany’s first order of Ethos therapy from the German Cancer Research Center (DKFZ) in Heidelberg. Notably, the first Ethos therapy in Germany will be installed soon and commence treatment of patients by early 2021.

In the same month, Varian announced that the Goshen Center for Cancer Care in Goshen treated its first patient with the Ethos Therapy. This marks the first availability of this advanced cancer treatment in Indiana. Notably, the Goshen Center of Cancer Care is the second provider of this cutting-edge therapy in the United States and the only provider in the state of Indiana.

Market Prospects

Per a Grand View Research report, the global cancer diagnostics market size was valued at $144.4 billion in 2018 and is expected see a CAGR of 7% over the forecast period (2019-2026). Hence, this MoU is opportune for Varian.

Price Performance

Shares of this currently Zacks Rank #3 (Hold) company have gained 22.8% compared with the industry’s growth of 17.5% in a year’s time.

Key Picks

Some better-ranked stocks from the broader medical space are Align Technology (ALGN - Free Report) , DaVita Inc (DVA - Free Report) and Thermo Fisher Scientific (TMO - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Align Technology has a projected long-term earnings growth rate of 18.3%.

DaVita has a projected long-term earnings growth rate of 18.3%.

Thermo Fisher has an estimated long-term earnings growth rate of 18%.

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