Varian Products Expand to Algeria - Analyst Blog
January 30 2013 - 12:56PM
Zacks
As a part of its strategy to expand its reach in the global
economy, Varian Medical Systems (VAR) announced
the sale of its products to the Algerian government. The Varian
Clinac iX devices along with Eclipse treatment planning and Aria
oncology information management softwares will be installed at a
radiotherapy clinic located in Setif, Algeria.
An aging population along with a high rate of smoking has led to
an increase in cancer count in Algeria. Lungs and breast cancer
account for one-fourth of new cancer cases every year. As per the
World Health Organization's (“WHO”) GloboCan project, cancer
incidences will increase by almost 25% in 2015.
In an effort to capture this opportunity, the oncology and X-Ray
products company has collaborated with the Algerian Ministry of
Health to provide three of its best linear accelerators to the new
medical center in Setif. The devices from the company’s Oncology
Systems segment will assist physicians to provide high quality and
cost effective treatments such as intensity modulated radiotherapy
(IMRT) and image-guided radiotherapy (IGRT).
Varian is poised to increase market share in the radiation
oncology market. International markets are too under-equipped to
address the growing incidence of cancer. The company’s strong
overseas presence is expected to enable it to leverage this
opportunity in the emerging markets.
The company currently enjoys a healthy demand for its coveted
TrueBeam technology in emerging markets. In Dec 2012, the company
had announced that the Clínicas Oncológicas Integradas (GRUPO COI)
is the first cancer treatment facility in South America to order a
TrueBeam system for treating tumors. Moreover, it had obtained
permission from the Indian Atomic Energy Regulatory Board in the
recent past for the usage of its TrueBeam High Intensity Mode for
cancer treatment.
However, Varian competes with larger players in a
technology-intensive industry. In the radiation oncology market,
the company competes with Accuray (ARAY). Further,
uncertainties stemming from health care reforms and a still weak
hospital capital spending environment are matters of concern.
The stock carries a Zacks Rank #3 (Hold). Cantel Medical
Corp. (CMN) and Cyberonics Inc. (CYBX)
with Zacks Rank #1 (Strong Buy) are expected to do well in the
medical instruments industry.
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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