AngioDynamics, Inc. (ANGO - Free Report) recently announced that the FDA has granted an expanded 510(k) clearance for its OARtrac Radiation Dose Monitoring System for use during cancer treatments. This expands patients’ access to improved radiotherapy outcomes apart from strengthening AngioDynamics’ Oncology business.
Following the announcement, shares of the Zacks Rank #3 (Hold) company rose 1.5% to $22.67 at close.
Coming back to the news, OARtrac is the first of its kind radiation dose monitoring platform which is capable of providing accurate and real-time measurement, besides reducing overall treatment costs.
Notably, RadiaDyne’ flagship product OARtrac was acquired by AngioDynamics last September.
Oncology Business at a Glance
AngioDynamics’ Oncology business is a prime contributor to its top line.
Notably, the unit includes Microwave Ablation, Radiofrequency Ablation (RFA), NanoKnife, BioSentry Tract Sealant System, Alatus, StarBurst XL & Semi-Flex RFA devices, UniBlate RFA Electrode and many more.
It is encouraging to note that in the last reported quarter, the Oncology unit grew 19.8% year over year. Further, the recent acquisitions of BioSentry and RadiaDyne proved accretive in the quarter.
Cancer on the Rise
A GLOBOCAN database suggests that 43.8 million people were diagnosed with cancer in 2018 globally. In fact, the global radiation therapy equipment market is expected to see a CAGR of 6.4% between 2019 and 2023 (per an article by The Newsmates).
Notably, other radiotherapy device magnates who also dominate the space are Varian Medical Systems (VAR - Free Report) and Accuray Incorporated (ARAY - Free Report) .
Both Varian Medical and Accuray offer a broad spectrum of radiation therapy products worldwide. Additionally, the companies enjoy a strong presence in China.
Over the past year, shares of AngioDynamics have rallied 31.4% compared with the industry’s 10.1% rise. The current level is also higher than the S&P 500 index’s 6.5% rally.
A better-ranked stock in the broader medical space is Integer Holdings Corporation (ITGR - Free Report) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Integer Holdings’ current-quarter earnings are projected to grow 31.2%.
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