Varian's New Products at RSNA - Analyst Blog

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Leading integrated radiotherapy systems maker Varian Medical Systems ( VAR ) said that it will be exhibiting its new X-ray tubes and PaxScan flat panel image detectors at the forthcoming Radiology Society of North America ("RSNA") annual meeting, scheduled to be held in Chicago from November 27 - December 1.

The California-based company will unveil a new range of PaxPower X-ray tubes at the RSNA meet. The PaxPower tubes are smaller, lighter and offer more power than the conventional X-ray tubes. These new tubes are geared for use with the compan y's PaxScan detectors for filmless imaging. Varian will also exhibit, at the RSNA, its technologies for treating cancer with targeted radiotherapy and radiosurgery.

Moreover, Varian will also highlight its proprietary PaxScan X flat panel technology, a new digital image detector platform that feature faster imaging frame rates and improved low dose fluoroscopy and dental panoramic imaging and better data acquisition.

Some of the PaxScan flat panel detectors to be featured at the RSNA are the PaxScan 3024M flat panel detector (developed for full field digital mammography), the PaxScan 1515DX (for cone-beam CT and panoramic imaging) and the PaxScan 2530C (for radiographic applications).

In addition to the X-ray tubes and PaxScan detectors, the company's oncology solutions will also be showcased at the RSNA meet. These include, among oth ers, a new user-centric design for the company's ARIA oncology information system, higher dose delivery rates on the Trilogy and Clinac machines and the ProBeam proton therapy solution.

Varian is the world's leading manufacturer of integrated radiotherapy systems for treating cancer and a premier supplier of X-ray tubes for diagnostic imaging applications.In the radiation oncology market, the company competes head-to-head with Accuray Incorporated ( ARAY ).

Varian's X-ray products segment is a distinct business unit, set apart from its oncology products business. The company offers a vast array of medical and industrial X-ray tubes, besides its PaxScan series of silicon flat panel detectors for digital radiography or imaging (without using films).

Varian is poised to increase its market share in radiation oncology. The company is currently enjoying a healthy demand for its coveted RapidArc and TrueBeam radiotherapy technology, which is meaningfully contributing to its oncology net order growth.

However, uncertainties stemming from health care reform and a still weak hospital capital spending backdrop across many developed countries, especially in Europe, represent headwinds. We currently have a Neutral recommendation on Varian, supported by a short-term Zacks #3 Rank (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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