Varian's Halcyon Receives Shonin Approval, Grows In Oncology

Varian Medical Systems (NYSE:VAR) announced the receipt of Shonin approval from the Ministry of Health, Labor and Welfare (MHLW) to market the Varian Halcyon system. The new system designed for cancer treatment simplifies and improves almost every aspect of image-guided volumetric intensity modulated radiotherapy (IMRT).

Notably, the 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. The company unveiled the Halcyon radiotherapy treatment system at the ASTRO conference in Vienna in the third quarter.

Notably, treatment using the Halcyon platform is cost effective and of short duration as well as 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 orders from North Africa and one from APAC.

Varian Medical 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.

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.

Over the past six months, Varian Medical has outperformed the broader industry in terms of price performance. The company has returned 13.9%, comparing favorably with the sub-industry’s gain of just 5.9%.

Zacks Rank & Key Picks

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

A few better-ranked medical stocks are PetMed Express, Inc. (NASDAQ:PETS) , Align Technology, Inc. (NASDAQ:ALGN) and Myriad Genetics, Inc. (NASDAQ:MYGN) . Notably, PetMed, Align Technology and Myriad 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 76.6% over a year.

Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has gained 163.9% over a year.

Myriad Genetics has a long-term expected earnings growth rate of 15%. The stock has gained 91.6% over a year.

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