Varian Medical Systems'
) RapidArc radiotherapy systems have become available to cancer
patients in Venezuela. Caracas-based GURVE Radiation Oncology Group
is the first cancer treatment center in the Latin American country
to provide RapidArc radiotherapy to more than 100 patients to
This marks increased market reach for Varian's state-of-the-art
RapidArc systems. According to the company, RapidArc can bolster
long run demand for its linear accelerators, intensity-modulated
radiotherapy (IMRT) and image-guided radiotherapy (IGRT) related
products comprising the Oncology Systems segment.
Revenues from Oncology Systems came in at $565.4 million in the
second quarter, up 11.3% year over year. Net orders for the segment
rose 8.6% to $564.8 million.
Until the most recent quarter, growth in orders in the North
American market and robust orders from Asia helped to drive the net
orders for the Oncology Systems segment. The company believes
countries in Latin America will have high growth potential for its
Fluctuation in revenues from quarterly net orders due to
shipment delay, customer order timing and other factors have been a
cause for concern for the company. With more orders for RapidArc
from GURVE Radiation Oncology Group, Varian can expect these orders
to mature into revenues in the near-term.
RapidArc can offer accurate image-guided treatment to target
tumors for precision treatment and reduce the exposure of
surrounding tissues and organs to radiotherapy. Experts at GURVE
Radiation Oncology Group point out this focus capability of
RapidArc. Additionally, treatment using RapidArc is quicker
compared with other conventional radiotherapy systems. This implies
a 15% increase in the number of patients treated each day for lung,
brain, prostrate and gynecological and other forms of cancer.
Varian is a leading manufacturer of integrated radiotherapy
systems for treating cancer 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
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 the
stock, backed by a short-term Zacks #3 Rank (Hold).
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