Oncology and X-Ray products company,
Varian Medical Systems
) recently revealed that a number of hospitals under the National
Health Service of the U.K. are utilizing RapidArc radiosurgery
know-how for providing stereotactic ablative body radiotherapy.
Thus, lung cancer victims have another option to surgery.
Lung cancer is hard to treat and, as per the World Health
Organization, constituted 18.2% of cancer mortality in 2010.
Survival rates for lung cancer are largely poor partly because it
goes undetected till it is in an advanced state.
By utilizing RapidArc know-how, stereotactic ablative body
radiotherapy provides certain lung cancer victims a less invasive
therapy alternative. Stereotactic ablative body radiotherapy has
been the topic of more than 40 recognized clinical papers and about
30 review papers.
Hospitals in London, Glasgow, Guildford and Wirral are currently
using offerings from Varian to tackle lung tumors often in the
elderly or inoperable cases. For this purpose, they send well
crafted, strong dosage X-Ray beams in therapy sessions that last 3
to 8 periods.
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
Varian 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 created to treat
tumors with beams of high speed and precision. It incorporates
several technological innovations such as positioning the patient
and managing his/her motion. It 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.
However, 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 challenges.
We are currently 'Neutral' on Varian. The stock retains a Zacks #4
Rank, which translates into a short-term Sell rating.
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