Varian Medical's Eclipse Picked By Paul Scherrer Institute

Varian Medical Systems, Inc. (NYSE:VAR) recently announced that Paul Scherrer Institute ("PSI") Center for Proton Therapy has begun utilizing the company’s flagship Eclipse treatment planning system for intensity modulated proton therapy (IMPT) treatments. Switzerland-based PSI is also employing Varian's ARIA oncology information management software. The latest development is likely to fortify Varian Medical’s foothold in the cancer therapeutics industry.

Following the announcement, shares of Varian Medical inched up 1.4% to $120.86 at close.

Coming back to the news, PSI started using the Eclipse system earlier in 2018. Notably, the IMPT treatment was delivered on a Varian ProBeam gantry. For investors’ notice, Varian Medical's ProBeam system is the world's first commercially available pencil beam scanning system.

Eclipse & ARIA at a Glance

Varian Medical’s Eclipse treatment planning system is an integrated and comprehensive one, which supports a variety of treatment options including protons, electrons, external beam, low-dose-rate brachytherapy and cobalt therapy.

Interestingly, the company’s Eclipse MCO (Multi-Criteria Optimization) delivered a strong performance in the last reported quarter, with more than 250 orders across all geographies. The system lets every patient have an optimal plan tailor-made for their respective disease needs.

It is encouraging to note that last month, Medical Specialist Holdings equipped seven of its centers in South Africa with Varian linear accelerators and Eclipse treatment planning system.

Varian Medical’s ARIA oncology information system is a comprehensive information and image management solution that lets clinicians oversee all aspects of oncology care for patients.

Market Prospects

Allied Market Research opines that the global cancer therapeutics market is estimated to reach $178,863 million by 2023, registering a CAGR of 11.9%.

Rise in cancer prevalence, increase in collaborations between pharmaceutical companies and extensive cancer research are key factors propelling growth.

Price Performance

We believe that such positive developments are likely to boost Varian Medical’s shares, which have rallied 10.1% compared with the industry’s 12.4% rise in a year’s time. The current level is higher than the S&P 500 index’s 0.6% decline.

Zacks Rank & Key Picks

Varian Medical currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Integer Holdings Corporation (NYSE:ITGR) , OPKO Health, Inc. (NASDAQ:OPK) and Surmodics (NASDAQ:SRDX) .

Integer Holdings has an earnings growth rate of 31.2% for the next quarter and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

OPKO Health’s long-term earnings growth rate is projected at 12%. The stock carries a Zacks Rank of 2.

Surmodics’ long-term earnings growth rate is estimated at 10%. The stock carries a Zacks Rank #2.

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