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Varian to Exhibit at the ECR 2012

Zacks Equity Research

Leading integrated radiotherapy systems maker Varian Medical Systems (VAR) will be showcasing its X-ray tubes and PaxScan flat panel image detectors at the European Congress of Radiology (“ECR”) annual meet, scheduled to be held in Vienna, Austria, from March 1-5. ECR is the annual meeting of the European Society of Radiology (“ESR”) and is the largest radiological meeting in Europe.

The California-based company will exhibit, at the ECR 2012, a range of PaxScan flat panel detectors and PaxPower X-ray tubes. Some of the PaxScan products to be featured at the meet are the PaxScan 1515DX for cone-beam computed axial tomography (“CT”) and panoramic imaging and the PaxScan 4343CB for a number of applications including surgical, ENT, oncology and orthopedics. 

Moreover, Varian will also highlight the PaxPower M-1500, its first X-ray tube designed specifically for advanced mammography applications. The company will also feature the PaxPower FP 2250 X-ray tube, geared for interventional procedures and portable surgical CT systems. Varian believes that these products will offer good value by combining enhanced image quality and higher patient throughput.

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. In the radiation oncology market, the company competes head-to-head with Accuray Incorporated (ARAY).

Varian's X-ray products segment is a distinct business unit, set apart from its oncology products franchise. The company offers a vast array of medical and industrial X-ray tubes, besides its PaxScan series of silicon flat panel detectors for digital radiography or imaging (without using films).

Varian is poised to increase its market share in radiation oncology. The company is currently enjoying a healthy demand for its coveted TrueBeam 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 backdrop across many developed countries, especially in Europe, represent headwinds. We currently have a Neutral recommendation on Varian, supported by a short-term Zacks #3 Rank (Hold).

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