Varian VAR recently announced the receipt of ANVISA registration for the Halcyonsystem in Brazil. With this registration, Varian will now be able to market this system in country.
Treatment using the Halcyon platform is cost effective and of short duration. It also enhances patient comfort. The system has been ergonomically designed to provide a user-friendly platform for clinical staff and patients. The company also stated that the system helps accelerate a complex image-guided IMRT plan compared to traditional devices.
Halcyon can treat majority of cancer patients. It offers advanced treatments for prostate, breast, head & neck, and many other forms of the disease. Notably, the platform received 23 orders in the last reported fourth quarter, of which 12 orders were from EMEA, 10 from North Africa and one from APAC.
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Developments in Oncology
Varian is consistently trying to boost its Oncology Segment. In this regard, the company has initiated its first education workshop for radiotherapy practitioners in Algeria. Further, the company recently announced that the first cancer patient was treated using its HyperArc High Definition Radiotherapy (HDRT), a new type of radiosurgery treatment, at Sacro Cuore Don Calabria Cancer Care Center in Negrar-Verona, Italy. Notably, revenues were up 1% at CER at this segment in the fourth quarter.
Of late, the company has been focusing on expansion in Brazil. In this regard, Varian recently announced plans of opening a new facility in Jundiai, Brazil, reflecting its long-term commitment and partnership with the Brazilian Ministry of Health. The facility has been fully-equipped to provide Varian Trilogy linear accelerator for hands-on training to physicians.
Growth With Halcyon
Recently, the Halcyon platform received both 510(k) clearance and CE Mark from the European directive, allowing Varian to start selling the system in the United States and Europe. Also, in November, the company announced the receipt of Shonin approval from the Ministry of Health, Labor and Welfare (MHLW) to market Halcyon in Japan.
The company’s strong overseas presence is expected to enable it to cash in on this opportunity in emerging markets.
Market Prospects
According to a report by Markets and Markets, the global radiotherapy market is projected to reach a worth of $9.47 billion by 2022, at a CAGR of 6.8%. Looking at the bountiful opportunities in this niche space, we believe the company’s latest development is a strategic fit.
Stock Performance Solid
Over the past six months, Varian has outperformed the broader industry in terms of price. The company has returned 8.5%, comparing favorably with the sub-industry’s gain of just 2%.
Zacks Rank and Key Picks
Varian carries a Zacks Rank #4 (Sell).
A few better-ranked medical stocks are PetMed Express, Inc. PETS, Align Technology, Inc. ALGN and Myriad Genetics, Inc. MYGN. Notably, PetMed, Align Technology andMyriad Genetics sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 87.9% over a year.
Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has gained 143.1% in a year.
Myriad Genetics has a long-term expected earnings growth rate of 15%. The stock has gained 94.69% in a year’s time.
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