As a part of its strategy to expand its reach in the global
Varian Medical Systems
) announced the sale of its products to the Algerian government.
The Varian Clinac iX devices along with Eclipse treatment
planning and Aria oncology information management softwares will
be installed at a radiotherapy clinic located in Setif,
An aging population along with a high rate of smoking has led
to an increase in cancer count in Algeria. Lungs and breast
cancer account for one-fourth of new cancer cases every year. As
per the World Health Organization's ("WHO") GloboCan project,
cancer incidences will increase by almost 25% in 2015.
In an effort to capture this opportunity, the oncology and
X-Ray products company has collaborated with the Algerian
Ministry of Health to provide three of its best linear
accelerators to the new medical center in Setif. The devices from
the company's Oncology Systems segment will assist physicians to
provide high quality and cost effective treatments such as
intensity modulated radiotherapy (IMRT) and image-guided
Varian is poised to increase market share in the radiation
oncology market. International markets are too under-equipped to
address the growing incidence of cancer. The company's strong
overseas presence is expected to enable it to leverage this
opportunity in the emerging markets.
The company currently enjoys a healthy demand for its coveted
TrueBeam technology in emerging markets. In Dec 2012, the company
had announced that the Clínicas Oncológicas Integradas (GRUPO
COI) is the first cancer treatment facility in South America to
order a TrueBeam system for treating tumors. Moreover, it had
obtained permission from the Indian Atomic Energy Regulatory
Board in the recent past for the usage of its TrueBeam High
Intensity Mode for cancer treatment.
However, Varian competes with larger players in a
technology-intensive industry. In the radiation oncology market,
the company competes with
). Further, uncertainties stemming from health care reforms and a
still weak hospital capital spending environment are matters of
The stock carries a Zacks Rank #3 (Hold).
Cantel Medical Corp.
) with Zacks Rank #1 (Strong Buy) are expected to do well in the
medical instruments industry.
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