Oncology and X-Ray products company
Varian Medical Systems
) recently revealed that it has provided a grant of $100,000 to
the American Board of Radiology Foundation to set up a
nation-wide brachytherapy registry.
According to the American Board of Radiology, this project
permits it to enhance its accountability before the public on the
proper usage of radiation therapy and medical imaging. As per
Varian, the endeavor will permit gathering of vital data for
creating fact-based therapy protocols.
Brachytherapy entails providing radiation therapy by positioning
minute radioactive substances into any tumor-related area of the
human body. This method is intended to maximize dosage on the
targeted area while minimizing damage to neighboring healthy
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
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
#3 Rank, which translates into a short-term Hold rating.
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