Oncology and X-Ray products company
Varian Medical Systems, Inc.
) recently revealed that it got 510(k) clearance from the Food
and Drug Administration (FDA) for its X-Ray image processor
workstation. The Nexus DRF Digital X-Ray Imaging System combines
digital radiography and radio frequency expertise within one
The Nexus system allows the lab specialist to generate, relay
and print quality X-Ray images. This equipment has the capability
to interface with a variety of systems. It has the ability to
capture minute image details that may be difficult with other
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 managing his/her motion. 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).
HeartWare International Inc.
Intuitive Surgical, Inc.
) are Zacks Rank #2 (Buy) stocks, which are expected to do
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