Varian Receives FDA Clearance - Analyst Blog
January 28 2013 - 9:20AM
Zacks
Oncology and X-Ray products company
Varian Medical Systems (VAR) recently revealed
that it has received FDA 510(k) clearance for its Edge radiosurgery
offering. This is Varian’s latest system for carrying out
radiosurgery using modern and timely movement management and tumor
monitoring know-how.
The Edge radiosurgery suite
includes several technologies which are approved by the FDA. These
components may also be rendered available as upgrades for suitable
Varian systems and may be listed as – the Calypso system, the
Advanced Motion & Image-Guided Radiotherapy package, the
PerfectPitch couch and the Intra-cranial radiosurgery package. The
Beacon transponders anchored to Calypso for lung radiosurgery are
awaiting FDA 510(k)
clearance.
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
Accuray (ARAY).
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 is 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 twice as
fast as that possible with earlier equipment.
Moreover, Varian continues to post
decent results despite the contagion of economic problems in Europe
and sustained softness in certain end markets. It enjoys a strong
balance sheet marked by low debt and sizeable cash. The company
also periodically deploys capital to boost investor confidence via
share repurchases.
However, 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 challenges.
The stock carries a Zacks Rank #3,
which translates into a short-term Hold rating. Cantel
Medical Corp. (CMN) and Cyberonics Inc.
(CYBX) are Zacks Rank #1 (Strong Buy) stocks which are expected to
do well.
ACCURAY INC (ARAY): Free Stock Analysis Report
CANTEL MED CORP (CMN): Free Stock Analysis Report
CYBERONICS INC (CYBX): Free Stock Analysis Report
VARIAN MEDICAL (VAR): Free Stock Analysis Report
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