Oncology and X-Ray products company
Varian Medical Systems
) and Paul Scherrer Institute ("PSI") recently revealed a
collaborative effort to pursue further knowledge in advanced
management of motion in the field of proton therapy. The two
entities will focus on rationalizing treatment methodologies for
different cancers and use a 4-D simulator (designed by PSI)
useful for planning treatment.
In proton therapy, a regulated stream of highly focused
protons is used to tackle tumors. Every effort is made to curtail
damage to healthy cells.
The Paul Scherrer Institute based in Switzerland is a
developer of Intensity Modulated Proton Therapy ("IMPT")
know-how. It pays special attention to the treatment of children.
PSI's techniques allow doctors to single out malignant growths
for treatment deep within the body, while curtailing damage to
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 is designed
to treat tumors with beams of high speed and precision. It
incorporates several technological innovations such as patient
positioning and the individual's motion management. Given its
high intensity nature, TrueBeam can dispense strong dosage over
twice as fast as that possible with earlier equipment.
Moreover, Varian continues to post decent results despite the
contagion of economic problems in Europe and sustained softness
in certain end markets. It enjoys a strong balance sheet marked
by low debt and sizeable cash. The company also periodically
deploys capital to boost investor confidence via share
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.
The stock carries a Zacks Rank #3 (Hold).
) are Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks,
respectively, which are expected to do well.
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