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Varian Medical Systems and International Market Penetration

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Revenue distribution

In 1Q18, Varian Medical Systems (VAR) reported revenues of $356.7 million from the Americas region, which was a YoY (year-over-year) growth of 20% on a reported as well as constant currency basis. The company reported revenue of $193 million from EMEA (Europe, the Middle East, and Africa) sales in 1Q18, which is a YoY rise of 5% on a reported basis but a decline of 2% on a constant currency basis. The company also reported revenues of $128.8 million from the APAC (Asia-Pacific) region in 1Q18, which is a YoY rise of 8% on a reported basis and a 10% rise on a constant currency basis.

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In 1Q18, Varian Medical Systems’ oncology business reported revenues of $347.1 million from the Americas region, which is a YoY growth of 16% on a reported as well as a constant currency basis. It reported revenues of $183.5 million for its oncology business in the EMEA region in 1Q18, which is a YoY rise of 9% on a reported basis and a 2% rise on a constant currency basis. The company reported revenues of $128.5 million for its oncology sales in the APAC region in 1Q18, which is a YoY rise of 15% on a reported basis and a 17% rise on a constant currency basis.

The above map shows growth in total orders for Varian Medical Systems in key markets. In 1Q18, the company reported total oncology orders worth $300 million, $190.4 million, and $130.0 million from the Americas, the EMEA, and APAC markets, respectively. International markets have emerged as a key growth driver for other medical device companies such as Baxter International (BAX), Medtronic (MDT), and Abbott Laboratories (ABT).

Latin America market trends

In 1Q18, Varian Medical Systems managed to secure four new orders for its Halcyon system from the Latin American markets, with two orders from Brazil and one each from the Dominican Republic and Aruba. Total orders from the Latin American market, however, declined 3% on a YoY basis in 1Q18 due to decreasing demand in Brazil.

In the next part, we’ll look at the growth prospects for the HyperArc System.

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