Oncology and X-Ray products company
Varian Medical Systems
) recently revealed that medical practitioners at the Beatson West
of Scotland Cancer Centre in Glasgow, U.K. have started to provide
cancer therapy with the TrueBeam STx linear accelerator.
Varian's TrueBeam reduces time required for treatment. It enhances
precision by curtailing movement. If the High Intensity Mode of
TrueBeam were not available, the time required for treatment would
be much longer along with other limitations.
In conjunction with the High Intensity Mode, the first therapy at
Glasgow also used Varian's RapidArc know how. In RapidArc therapy,
the beam is continuously configured to align the dosage to the
shape of the tumor, thereby reducing damage to nearby healthy
The Beatson West of Scotland Cancer Centre in Glasgow provides
cancer care to over 7,000 individuals each year using 11 linear
accelerators from Varian.
Varian is a leading manufacturer of integrated radiotherapy systems
for cancer treatment and a premier supplier of X-ray tubes for
diagnostic imaging applications. The company operates in a
technology-driven environment where success depends on the use of
new technology, product development and upgrades. In the radiation
oncology market, Varian competes with
The company is poised to increase its market share in radiation
oncology. It currently enjoys a healthy demand for its coveted
TrueBeam technology, which has meaningfully contributed to its net
order oncology growth. Varian's TrueBeam was designed to treat
tumors with beams of high speed and precision. It incorporates
several technological innovations such as patient positioning and
managing his/her motion. TrueBeam can dispense dosage roughly four
times faster than that possible with earlier equipment.
Moreover, Varian enjoys a strong balance sheet marked by low debt
and moderate cash. The company from time to time uses a part of its
healthy cash flow for share repurchases.
Varian competes with larger players in a technology-intensive
industry. Further, uncertainties stemming from health care reform
and a still weak hospital capital spending environment across many
developed countries, especially in Europe, are significant
We are currently 'Neutral' on Varian. The stock retains a Zacks #2
Rank, which translates into a short-term Buy rating.
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