Varian Medical Systems, Inc. VAR recently announced the completion of the cyclotron installation for the Varian ProBeam Compact single-room proton therapy system at Biopolis, an international biomedical research hub in Singapore. Notably, this is in partnership with Proton Therapy Pte., Ltd.

Earlier this year, this Zacks Rank #3 (Hold) company had announced the installation of the gantry for the Varian ProBeam Compact single-room proton therapy system at the new oncology center in Biopolis. (Read More: Varian Medical's ProBeam Compact Picked by Biopolis)

Brief Note on ProBeam

Varian's ProBeam is the world's first commercially available pencil beam scanning system, which is the most precise form of proton therapy available. Notably, the ProBeam Compact system is a single-room system equipped with a 360-degree gantry for intensity modulated proton therapy. When combined with ARIA oncology information system and Eclipse treatment planning system, the ProBeam system enables an efficient adaptive workflow.

It is encouraging to note that in the recently reported second quarter of fiscal 2019, revenues from the company’s Protons solutions business totaled $33 million, up 2% year over year.

Presence in Asia

Varian Medical has a significant presence in Asia. Notably, the company delivered strong double-digit growth in the fiscal second quarter in China, Japan and Southeast Asia, China being the second-largest market for expansion. APAC revenues grew 7% year over year.

Also, last month, the company announced the installation of cyclotron for the Varian ProBeam proton therapy system at Hefei Ion Medical Center in China, on completion of which the center will feature three proton therapy treatment rooms with full 360-degree rotational gantries. Additionally, the company’s much-coveted Halcyon system recently treated its first patient in Malaysia, marking the first successful patient demonstration in Southeast Asia.

In March, Varian Medical signed a three-year agreement with Tata Trust with a view to increase patient access to advanced radiation therapy treatments in India.

Market Prospects

Technavio analysts expect the global proton therapy market to see a CAGR of more than 9% between 2018 and 2022. Advantages of proton therapy over standard radiation therapies currently fuel demand for proton therapy around the world.

Hence, the developments have been well-timed for Varian Medical.

Price Performance

Over the past year, shares of Varian Medical have rallied 10.6% against the industry’s 1.3% decline. The current level is also higher than the S&P 500 index’s 4.2% rally.

Key Picks

Some better-ranked stocks in the broader medical space are DENTSPLY SIRONA XRAY, Masimo Corporation MASI ad CONMED Corporation 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 at 11.5%.

Masimo’s long-term earnings growth rate is projected at 16.1%.

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

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