Varian's (VAR) ProBeam System Gets Picked by Delray Medical

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Varian Medical Systems, Inc.VAR recently installed the cyclotron for its coveted ProBeam Compact single-room proton therapy system at the cancer treatment center of the Delray Medical Center, Florida. Notably, Varian Medical is partnering with Proton International for the installation and the company expects to start treating patients by fall 2019.

The latest development is likely to boost Varian Medical's proton therapy business.

Notably, Varian Medical's ProBeam is the world's first commercially available pencil beam scanning system, designed for intensity modulated proton therapy (IMPT). Combined with Varian Medical's ARIA oncology information system and Eclipse treatment planning system, ProBeam enables an efficient workflow.

Market Prospects

An article by Grand View Research states that the global proton therapy market was valued at $1,099.2 million in 2016 and is projected to see a CAGR of 3.1% by 2025. Increasing number of proton therapy centers and a surge in the number of cancer cases drive the market.

Hence, Varian Medical's latest move has been a well-timed one.

A Peek Into Varian's Proton Therapy Business

Proton therapy constitutes of Varian Medical's Particle Therapy business. Currently, proton therapy as a whole is offered at 48 centers worldwide.

Earlier this year, the company installed a Varian ProBeam cyclotron at University College Hospitals London NHS Foundation Trust's (UCLH) proton beam therapy center. (Read More: Varian Medical's ProBeam Platform Gains Foothold in UK )

Management is optimistic about Varian Medical's current Georgia Proton Treatment Center Project. The company's Maryland Proton facility also continues to perform well and treats over 100 patients a day.

Moreover, in the recently reported third quarter of fiscal 2018, the company won a five-year contract for a patient engagement platform at The New York Proton Center - which is an alliance between Memorial Sloan Kettering, Montefiore and Mount Sinai.

Price Performance

Shares of Varian Medical have rallied 5.1% against the industry 's decline of 4.7% in a year's time.

However, the current level is lower than the S&P 500 index's return of 18.6%.

Key Picks

Varian Medical currently carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the broader medical space are athenahealth ATHN , Intuitive Surgical ISRG and Masimo Corporation MASI .

athenahealth has a long-term expected earnings growth rate of 17.6%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Intuitive Surgical's expected long-term earnings growth rate is 14.7%. The stock sports a Zacks Rank #1.

Masimo's long-term earnings growth rate is projected at 14.8%. The stock carries a Zacks Rank #2 (Buy).

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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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