Varian Medical Systems (VAR - Free Report) recently installed a Varian ProBeam cyclotron at University College Hospitals London NHS Foundation Trust’s (“UCLH”) proton beam therapy center. Notably, cyclotron is a particle accelerator which accelerates protons to two thirds the speed of light for clinical use. UCLH will feature four treatment rooms and will commence treating patients from 2020.
Earlier, in 2017, Varian Medical delivered a cyclotron to the U.K.'s first National Health Service high energy proton therapy center.
With this latest move, the California-based provider of cancer care will further consolidate its global foothold in providing proton therapy solutions.
We believe such positive developments will further boost Varian’s shares, which have gained 10.4% against the industry’s decline of 4.4% in the past six months.
Per Grand View Research, the global proton therapy systems market is expected to reach $2.88 billion by 2025. Increasing numbers of proton therapy centers, rising prevalence of cancer and hospitals’ focus on investment are believed to be the primary growth drivers.
Varian - The Proton Therapy Magnate
Varian Medical's ProBeam system is at the forefront of the industry, having created the world's first commercially available pencil beam scanning system. Notably, it is the first of its kind to deliver intensity-modulated proton therapy.
Per management, since fiscal 2017, Varian Medical’s sales pipeline has remained solid with six proton orders. The company has also been focusing on education and training for the continued growth of proton therapy around the world.
Recently, Varian Medical and the University of Maryland School of Medicine reached their first educational milestone at the Maryland Proton Treatment Center. More than 150 medical professionals have been trained in this joint venture.
Furthermore, recently St. Petersburg Center of Nuclear Medicine of the Sergey Berezin Medical Institute successfully completed its first pediatric patient treatment with the Varian ProBeam proton therapy system. (Read More: Varian Medical's ProBeam Platform Gains Traction in Russia).
Earlier, Varian Medical’s ProBeam was also selected by Penn Medicine, an academic medical center of the University of Pennsylvania. Additionally, the company’s coveted ARIA information management system and Eclipse treatment planning system were also picked by Penn Medicine.
Zacks Rank & Other Stocks to Consider
Varian Medical currently flaunts a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks in the broader medical space are Genomic Health (GHDX - Free Report) , Abiomed (ABMD - Free Report) and Stryker Corporation (SYK - Free Report) .
Genomic Health has an expected earnings growth rate of 187.5% for the current quarter. The stock sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Abiomed has a projected long-term earnings growth rate of 27%. The stock sports a Zacks Rank #1.
Stryker has a projected long-term earnings growth rate of 9.7%. The stock carries a Zacks Rank #2 (Buy).
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