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Varian's ProBeam Now Available in Multi-Room Configuration

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Varian Medical Systems, Inc. recently announced that its much-coveted ProBeam 360° proton therapy system is now available for sale in a multi-room configuration. Notably, this strengthens the MedTech giant’s Proton Therapy Solutions arm.

Following the announcement, shares of Varian climbed 0.6% to $117.21 at close.

The Zacks Rank #3 (Hold) leading provider of radiotherapy and proton therapy has been dominating the headlines when it comes to transforming cancer care globally. It is encouraging to note that lately, Varian has launched an AI-driven Ethos therapy to deliver adaptive radiation treatment — another path-breaking invention in the cancer care space. (Read More: Varian's AI-Driven Ethos Solution to Boost Global Cancer Care)

Coming back to the news, Varian’s ProBeam 360° system is the smallest multi-room system which allows cancer centers to meet varied clinical, research and capacity needs. The system features the most powerful particle accelerator, a 360-degree gantry for clinical efficiency and FLASH therapy for potential next-generation treatments.

Proton Therapy at a Glance

Varian's ProBeam is the world's first commercially available pencil beam scanning system, which is the most precise form of proton therapy available. Notably, proton therapy is an advanced form of cancer care which uses protons to destroy cancer cells.

In recent times, the Proton Therapy unit has seen notable developments.

For instance, Varian was recently selected by Shandong Cancer Hospital in China to equip its new multi-room proton clinical research center with the ProBeam Proton Therapy system. The agreement with Shandong is expected to open up stupendous opportunities for Varian in China.

Last month, Varian completed the installation of cyclotron in its flagship ProBeam Compact single-room proton therapy system at the Sylvester Comprehensive Cancer Center in the University of Miami. In July, the company installed the cyclotron for its flagship ProBeam Compact single-room proton therapy system at the King Chulalongkorn Memorial Hospital in Bangkok, Thailand.

Apart from these, management also confirmed that Varian’s proton therapy arm has a healthy pipeline.

Market Prospects

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.

Price Performance

Reflective of the developments, the stock has rallied 5.3% against the industry's 5.6% decline.

Key Picks

A few better-ranked stocks in the broader medical sector are Baxter International (BAX - Free Report) , Intuitive Surgical (ISRG - Free Report) and Masimo Corporation (MASI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Baxter’s long-term earnings are expected to grow 12.8%.

Intuitive Surgical’s long-term earnings are projected to increase 12.8%.

Masimo’s long-term earnings are estimated to rise 20.5%.

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