The recent display of a new product by Varian Medical System ( VAR ) at the 54th annual meeting of the American Society for Radiation Oncology (ASTRO) should further boost the positive trend demonstrated by VAR's stock over the last couple of weeks.
Varian's latest RapidPlan knowledge-based software provides standard of care models to clinicians to use as a baseline for formulating complex intensity-modulated radiotherapy (IMRT) treatment plans for their patients. However, the product from the company's Oncology Systems business is yet to receive U.S. Food and Drug Administration (FDA) approval and is not yet available for sale.
The RapidPlan tool is integrated within Varian's Eclipse treatment planning system, used for planning all types of external beam radiotherapy. The software helps automate an important part of the treatment planning process, thereby improving the quality and efficiency of care.
Similar products offered by the company include the RapidArc technology and the Smart Segmentation knowledge-based tool. Based on the cost effectiveness of the new softwares, management plans to create more knowledge-driven solutions for the entire oncology continuum.
Recently, VAR completed the first two planned installations of its Edge Radiosurgery Suite in Europe and the U.S. The Radiosurgery Suite is designed to perform advanced radiosurgery using real-time tumor tracking technology and motion management capabilities.
Varian will also launch The Edge Advisory Board to help clinicians perform the procedures. Through this board, VAR will provide clinical education by partnering with leaders in radiosurgery, including neuro- and thoracic surgeons as well as radiation oncologists.
Varian is poised to increase its global market share in the radiation oncology market as international markets are still under-equipped to address the growing incidence of cancer. Last month, the company received an order for 20 TrueBeam machines from NHS Supply Chain for NHS hospitals across the U.K.
VAR has a Zacks Rank #2 (Buy). Other medical instruments stocks such as Cynosure, Inc. ( CYNO ), Delcath Systems, Inc. ( DCTH ) and Echo Therapeutics, Inc. ( ECTE ) are worth a look at the moment. All of them carry a Zacks Rank #2 (Buy).