Varian Medical Systems Inc. (VAR - Free Report) recently launched Velocity 4.0, a new version of its flagship Velocity cancer imaging platform. The system will enhance patient-specific 3D imaging and radiation dosimetry for targeted cancer therapy.
Velocity 4.0 is designed for patients with liver malignancies and includes Rapidsphere — a module for Y90 Selective Internal Radiation Therapy (SIRT) dosimetry analysis.
We believe that Varian Medical’s strategy to target the radiation-dosimetry market is a timely one, considering higher profits in the niche space. Per a report by the Business Wire, the global market for radiation dosimeters is projected to witness a CAGR of 5-5.5% by 2022.
Notably, Velocity 4.0 and the Rapidsphere module have received 510(k) clearances from the FDA, earlier.
Varian Medical’s shares have rallied 1.5% following the announcement and closed at $119.93.
In fact, this Zacks Rank #3 (Hold) company outperformed its industry in a year’s time. Precisely, the stock has returned 48.9%, comparing favorably with the industry’s rally of 26.8%. Also, the current return is higher than the S&P 500’s Index’s gain of 23.5%.
Varian Medical’s Velocity Unit Driving Growth
Varian Medical’s Velocity platform is a major contributor of revenues, growing strong double-digits in the first quarter of fiscal 2018.
Velocity oncology imaging informatics system is a vendor neutral software solution that collects and integrates oncology data pertaining to medical imaging, treatment and metadata helping the patient for ready data access.
The system allows clinicians to measure changes over time, enable tumor delineation and evaluate cancer treatments using medical imaging data.
After the inclusion of Rapidsphere software, Velocity will now provide the ability for cancer care teams to study tumor response and normal-tissue toxicity for individual patients receiving SIRT.
Market Prospects Bright
While the latest development focusses specifically on the liver-cancer space, Varian Medical has been a global leader in developing and delivering cancer care solutions of all types.
A research report by Mordor Intelligence projects that the global liver cancer therapeutics market is expected to register a CAGR of 7- 12% from 2018 to 2023.
However, aggressive rivalry in the niche markets is a headwind. Varian Medical competes with large electronic companies such as Siemens and Philips as well as with smaller and more specialized radiation therapy equipment manufacturers like Accuray.
A few better-ranked players in the broader medical sector are Bio-Rad Laboratories (BIO - Free Report) , Abaxis, Inc. (ABAX - Free Report) and Edwards Lifesciences Corporation (EW - Free Report) .
Bio-Rad Laboratories sports a Zacks Rank of #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The company has a long-term expected earnings growth rate of 20%.
Abaxis, a Zacks Rank #2 (Buy) stock, has a long-term earnings growth rate of 5.1%.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.1%. The stock has a Zacks Rank of #2.
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