Varian's RapidArc Comes to Africa - Analyst Blog

Varian Medical Systems (VAR), a leading integrated radiotherapy systems maker, recently announced that a prostate cancer patient has become the first individual in sub-Saharan Africa to receive treatment with its RapidArc technology. The patient was treated at the Netcare Unitas Hospital, the largest private hospital in the region, located in Centurion, a suburb of Pretoria. 

Tecmed Africa (Pty) Ltd represents Varian in sub-Saharan Africa. Since it started operations in 1992, it has gradually become the leading provider of medical equipment in Africa.

The state-of-the-art RapidArc technology operating on the facility's Varian Clinac iX medical linear accelerator renders accurate image-guided “IMRT” (intensity modulated radiotherapy) up to four times quicker than the conventional mode. The RapidArc IMRT beam quickly delivers the requisite dosage while continuously revolving around the recipient. According to studies, rapid treatment permits higher precision since there is less probability of movement of tumor during delivery of treatment.

The Netcare Unitas Hospital, with 470 beds, is the flagship facility of the Netcare group's 54 facilities in South Africa. Its radiotherapy wing handles about 300 fresh cases each year. The hospital plans to utilize RapidArc for treating prostate and neck/head cancer patients before extending it to difficult procedures, like extra-cranial stereotactic treatment, which require the usage of much higher-dosage beams to rapidly tackle certain tumors in the lungs, spine or liver.

Varian is the world's leading manufacturer of integrated radiotherapy systems for treating cancer and a premier supplier of X-ray tubes for diagnostic imaging applications. The company operates in a technology-driven environment, where success depends on the use of new technology, new product development and product upgrades. In the radiation oncology market, Varian competes head-to-head with Accuray Incorporated (ARAY) and TomoTherapy (TOMO).

Varian is poised to increase its market share in the radiation oncology market. The company is currently enjoying a healthy demand for its coveted RapidArc radiotherapy technology, which is meaningfully contributing to its oncology net order growth.

However, uncertainties stemming from health care reform and a still weak hospital capital spending environment across many developed countries provide headwinds. We currently have a Neutral recommendation on Varian.

 
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