Varian Medical (VAR) Initiates Halcyon Treatment In Europe

Strengthening its focus on image-guided volumetric intensity modulated radiotherapy to cancer patients, Varian Medical Systems Inc. (NYSE:VAR) announced that it has initiated treatment with its latest Halcyon radiotherapy treatment system in Europe. Notably, treatment was provided to an 80-year-old male with head and neck cancer at Belgium-based University Hospitals Leuven (UZ Leuven) just two months after the hospital had ordered the new system.

The Halcyon radiotherapy treatment system has been designed to offer cost-effective cancer care worldwide. 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 was cost effective and of short duration. The system has been ergonomically designed to provide a user-friendly platform for clinical staff and patients.

Halcyon Fortifies Varian’s Global Foothold

Varian has a long-term goal to treat 6 million cancer patients every year with its highly exclusive radiotherapy treatments. By the end of the third quarter, management at Varian announced that Halcyon has received orders from 10 countries. In North America, Varian struck a strategic deal with PetCure to deliver six Halcyon units for a veterinary oncology network. Per management, regulatory clearances from China and Japan should follow next year.

Furthermore, Varian received orders for two Halcyon systems from the Icon Group in Australia. The company booked several orders from countries like India, Morocco, Romania, Russia, Turkey and the U.K.

Market Prospects

Varian has been taking initiatives to gain customers for its broad spectrum of products, especially targeting the emerging markets. Strong revenue opportunity from its Oncology and Imaging Component products, growing adoption of Proton Therapy, strong overseas presence, particularly in emerging countries, and new partnership deals are positives for Varian. Data from Markets And Markets reveals that the global radiotherapy market is projected to reach a worth of $9.47 billion by 2022, at a CAGR of 6.8%.

Other Companies Eyeing Emerging Markets

The ongoing political uncertainty in the United States along with the deteriorating economic condition in Europe automatically shifted focus of several MedTech players to emerging geographies like China, India, Latin America and others.

Johnson & Johnson (NYSE:JNJ) had set up manufacturing and R&D centers in Brazil, China and India. It has been doing business in China for nearly 30 years and is expanding further on the back of the Synthes acquisition.

Thermo Fisher (NYSE:TMO) is also leaving no stone unturned to expand its presence in emerging markets. The company garnered 20% of total revenue from the high-growth Asia Pacific and emerging markets in 2016, up from 10% in 2006.

Abbott (NYSE:ABT) continues to lead the emerging market investment trend with about 50% of sales from this region. In recent quarters, sales in key emerging markets were up double digits, driven by strong growth in countries like Colombia, Mexico, Peru and Argentina.

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