Varian (VAR) & Tennessee Oncology To Implement Use Of Noona

With an effort to boost cancer care, Varian Medical Systems, Inc. (NYSE:VAR) recently announced a tie-up with Tennessee Oncology for the implementation of Noona. Notably, Noona is a software application for managing patient symptoms and capturing patient reported outcomes. This is likely to drive Varian’s core Oncology business.

For investors’ notice, Varian Medical acquired Noona Healthcare last October, to help enable direct communication with patients. (Read More: Varian Buys Noona to Boost Oncology Software Services)

Rationale Behind the Tie-Up

Per terms of the collaboration, Noona will be deployed at more than 30 centers across Tennessee, targeting approximately 25,000 patients per year. Noona is designed to collect standardized dataset pertaining to patients' quality of life, including new or shifting symptoms that may signal a necessary shift in care. The software may be accessed on any device through Apple (NASDAQ:AAPL) or Android applications.

The software has proven to deliver higher clinical efficiency and reduced workload and improved information.

As a result of the deal, Varian’s core Oncology unit is expected to get a boost.

The company’s comprehensive oncology software provides a seamless flow of information for accurate, efficient and timely information helping build a solid foundation for patient safety and well-being.

In the last reported quarter, the company’s largest business segment contributed 95.8% to net quarterly sales. Some of the noteworthy platforms in the Oncology segment are 360 Oncology, Eclipse for Proton and Eclipse Treatment planning system, which are currently much in demand.

Market Prospects

Allied Market Research predicts the global oncology information system market to reach a worth of $4.57 billion by 2025, at a CAGR of 7.1%. Surge in prevalence of cancer cases and technological advancements in these systems currently fuel growth.

Hence, the latest development has been a strategic one for Varian.

Price Performance

Over the past year, this Zacks Rank #3 (Hold) stock has rallied 14% compared with the industry’s 4.1% rise and the S&P 500 index’s 6.7% growth.

Key Picks

A few better-ranked stocks in the broader medical space are DENTSPLY SIRONA (NASDAQ:XRAY) , Penumbra (NYSE:PEN) and CONMED Corporation (NASDAQ:CNMD) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DENTSPLY’s long-term earnings growth rate is expected to be 11.5%.

Penumbra’s long-term earnings growth rate is projected at 21.5%.

CONMED’s long-term earnings growth rate is estimated at 13.3%.

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