Varian Medical Systems, Inc. (VAR - Free Report) recently announced its first patient in Malaysia to be treated with the Halcyon system. According to the company, a 62-year-old male, suffering from thyroid cancer, became the first patient in Malaysia to receive this treatment at Beacon hospital in Selangor.
This marks the Halcyon system’s first successful patient demonstration in Southeast Asia.
This can be considered a major development in terms of Varian’s emerging market expansion strategy. Following the announcement, shares of the company have gained 0.28% to close at $141.98 yesterday.
More About the Halcyon System
The Halcyon system has been designed to provide technologically-advanced, high-quality treatment to cancer patients. The platform provides simplified and enhanced image-guided volumetric intensity-modulated radiotherapy. The product claims to be much superior to traditional technologies, thanks to the speed of treatment and improved quality of patient care it offers.
The platform has a streamlined workflow that necessitates only nine steps from the installation to the end of the treatment, whereas the traditional technologies require more than 30 steps for the same.
Per Zion Market Research, the global chemotherapy devices market is expected to reach a worth of $18.8 billion, at a CAGR of around 7.9% during the forecasted period of 2018 to 2024.
Of late, Varian has been making solid progress with its Halcyon platform, both within and outside the United States. Since its launch, the company has received 202 orders worldwide.
Last December, Halcyon radiotherapy system, manufactured in China, was granted exclusion from the Section 301 tariffs by the United States Trade Representative (USTR). Per the announcement, the exception will have a less than $1-million impact on Varian’s 2019 financial results — a relief for Varian which has a large commercial base in China.
With regard to other emerging market developments, the company recently announced that a 55-year-old male suffering from liver cancer at the Korea University Medical Center Anam Hospital was the first patient in Korea to be successfully treated by the Halcyon system.
In February 2019, Varian equipped the Lagos University Teaching Hospital of Nigeria with one Halcyon treatment system and two VitalBeam radiotherapy systems.
In 2018, Varian closed a partnership agreement with Mediheal Group of Hospitals to enable access to its radiotherapy system in Kenya. This agreement included the supply of four Halcyon systems to five new radiation therapy centers across the country.
Last October, Varian announced a 75-year-old male affected with throat cancer became the first patient in India to be treated on the Halcyon system at Sterling Cancer Hospital in Gujrat.
Over the past year, Varian stock has outperformed the industry it belongs to. The stock has rallied 19% compared with the industry’s rise of 16.1%.
Zacks Ranks and Other Key Picks
Varian currently sports a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Stryker Corporation (SYK - Free Report) , Penumbra, Inc. (PEN - Free Report) , and Amedisys, Inc. (AMED - Free Report) . Notably, each of these stocks currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stryker’s long-term earnings growth rate is projected at 10%.
Penumbra’s long-term earnings growth rate is estimated at 20.9%.
Amedisys’s long-term earnings growth rate is projected at 19.7%.
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