Varian Medical Systems’ growth strategies
Varian Medical Systems (VAR) is focused on improving revenues and increasing profitability through consistent growth strategies and initiatives. The company’s primary growth strategies are globalization, expansion of software and service offerings, innovation, operational excellence, and proton therapy advancement.
Varian Medical Systems’ major peer companies, including C R Bard (BCR), Intuitive Surgical (ISRG), and Accuray (ARAY), are also striving to improve their market share through various initiatives and strategies. For exposure to VAR, you can invest in the iShares Edge MSCI Min Vol USA ETF (USMV), which invests approximately 0.61% of its holdings in the company.
Varian Medical Systems sells its products around the globe and partners with a large number of organizations to improve cancer care and treatment. The company has been expanding its installed machine base, especially in emerging markets, which have immense growth potential.
Software and service portfolio expansion
Varian Medical Systems has increased its product portfolio over time and has expanded across data-enabled platforms, leading to more intelligent software systems and services. The company’s service business accounts for approximately ~$1 billion of overall revenue. One of the recent software expansion initiatives is the company’s new RapidPlan treatment. The data analytics tools offered by the company include InSightive Analytics and Velocity.
Varian Medical Systems has been growing primarily in the radiation oncology area through consistent technology innovations. The company is looking into high-definition radiation therapy to deliver more efficient tumor treatments. The company’s recent innovation initiatives include RapidPlan, multi-modality imaging, intelligent treatment delivery, advanced analytics, and proton therapy.
The company’s software and services advancements, along with innovations that provide enhanced value to customers, enable operational efficiency. The company’s initiatives to improve quality and efficiency continue to drive its growth.
Proton therapy advancements
Varian Medical Systems has ventured into the proton therapy business and has a huge product pipeline in this area. The company generated approximately $300 million through its proton therapy business in 2015.
In the next part of this series, we’ll discuss Varian Medical Systems’ geographical landscape and strategies for growth.