Varian Medical Systems Inc. (VAR - Free Report) recently introduced its new HyperArc High Definition Radiotherapy (HDRT) technology at the 2016 American Society for Radiation Oncology (ASTRO) Annual Meeting. This technology will use non-coplanar treatment strategies in radiotherapy and radiosurgery for cancer patients. It is designed to automate and simplify sophisticated treatments such as Stereotactic Radiosurgery.
HyperArc is designed for Varian's TrueBeam and EDGE treatment platforms. The HyperArc treatment delivery technology is currently FDA 510(k) pending. Treatment planning supporting HyperArc is being developed to do virtual dry runs to evaluate treatment quality before the dose is delivered.
The company is aiming to make the HyperArc technology clinically available beginning in 2017. First generation HyperArc products will be designed for the radiosurgical treatment of brain metastases.
Varian’s oncology business growth prospects are impressive. The company is addressing both the tier 1 and mid-tier markets through its Edge, Truebeam and VitalBeam products. Moreover, the company is winning contracts, not only in the Americas but also in international markets, which is a huge positive.
Strong fiscal third-quarter 2016 results validate the company’s growth scenario. Adjusted earnings of $1.22 per share beat the Zacks Consensus Estimate by a nickel and increased 6.1% on a year-over-year basis. The figure comfortably surpassed management’s guided range of $1.16–$1.20 per share.
Oncology System sales increased 8.3% from the year-ago quarter to $605.2 million, while gross orders increased 6.4% to $675.9 million in the fiscal third quarter. Moreover, Oncology gross margin improved more than 400 basis points to 46% driven by a favorable product mix (higher mix of TrueBeams and software) as well as productivity gains.
Following robust results, Varian raised its fiscal 2016 guidance. The company now expects adjusted earnings in the range of $4.62–$4.66 per share, up from the previously guided $4.55–$4.65. Revenues are still expected to increase 3% in fiscal 2016.
Other major players in the medical sector include CryoLife Inc. (CRY - Free Report) , IDEXX Laboratories Inc. (IDXX - Free Report) and Masimo Corporation (MASI - Free Report) .
CryoLife posted a superb one-year return of 83.9%, much better than the S&P’s 13% over the same time frame. The company also posted positive earnings surprises in the last four quarters, the average being 502.50%.
IDEXX recorded a streak of positive earnings surprises over the last four quarters, at an average of 12.7%. Additionally the company has an impressive one-year return of 52.7%.
Headquartered in Irvine, California, Masimo also registered a promising one-year return of 55.1%.
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