Oncology and X-Ray products company
Varian Medical Systems
) recently revealed that it had obtained permission from the
Indian Atomic Energy Regulatory Board for the usage of its
TrueBeam High Intensity Mode for cancer treatment.
Varian's equipment for cancer treatment is on display at the 34th
Annual National Conference of the Association of Radiation
Oncologists of India (AROICON 2012) in Kolkata this week
(November 29 to December 2, 2012).
The population in India exceeds one billion. Women are frequently
afflicted by breast and cervical cancer whereas men often suffer
from stomach and lung cancer. Varian has placed a sizeable number
of linear accelerators in the country and holds a notable
position in the market. The company has set up an educational
facility in Mumbai to impart training to physicists and medical
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. Given its high intensity
nature, TrueBeam can dispense strong dosage over two times faster
than that possible with earlier equipment.
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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