Varian Medical Systems, Inc.
(VAR - Free Report
) recently announced the installation of cyclotron for the Varian ProBeam proton therapy system at Hefei Ion Medical Center (“HIMC”) in China. On completion, the HIMC will feature three proton therapy treatment rooms with full 360-degree rotational gantries.
Following the announcement, shares of the Zacks Rank #2 (Buy) company has risen 0.6% to $141.97 at close.
This fortifies the MedTech giant’s position in the global proton therapy market.
More on Proton Therapy
Cyclotron is a core piece of equipment in the ProBeam proton therapy system. Notably, the company’s ProBeam is the world's first commercially available pencil beam scanning system, which is the most precise form of proton therapy available.
The platform has seen worldwide developments in recent times.
Notably, the company completed clinical handovers to Emory Proton Therapy Center in Georgia, HollandPTC in the Netherlands and Christie Hospital in the United Kingdom. These represent a major recurring revenue stream for the Proton business. Flash and ProBeam 360, Varian’s new smaller footprint Proton Systems, are also seeing rising momentum.
In January, Varian Medical announced the installation of the gantry for the Varian ProBeam Compact single-room proton therapy system at the new oncology center at Biopolis, an international biomedical research hub in Singapore. (Read More: Varian Medical's ProBeam Compact Picked by Biopolis
Per HIMC management, more than 10 thousand people are diagnosed with cancer every day in China.
Moreover, Technavio analysts expect the global proton therapy market to see a CAGR of more than 9% between 2018 and 2022. Advantages of proton therapy over standard radiation therapies currently fuel demand for proton therapy around the world.
Hence, the developments have been well-timed for Varian Medical.
Apart from Varian Medical, another key player who enjoys a solid presence in China is Accuray Incorporated (ARAY - Free Report
) . In recent times, the company’s subsidiary, Accuray Asia, recently formed a joint venture with CNNC High Energy Equipment Co., a subsidiary of China Isotope and Radiation Corporation, to manufacture and sell radiation oncology systems in China.
Over the past year, shares of Varian Medical have rallied 18.4% compared with the industry
’s 9.7% rise. The current level is also higher than the S&P 500 index’s 8.6% rally.
Other Key Picks
Other top-ranked stocks in the broader medical space are Stryker Corporation (SYK - Free Report
) and Penumbra (PEN - Free Report
) , each carrying a Zacks Rank of 2.
Stryker’s long-term earnings are expected to grow 10%.
Penumbra has a long-term earnings growth rate of 20.9%.
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