Nov. 15 (Bloomberg) -- Varian Medical Systems Inc., the maker of tools to treat cancer with radiotherapy, climbed the most in seven weeks after an analyst said Siemens AG planned to reduce its business in radiation therapy.
Varian gained 6.1 percent to $60.50 at 2:06 p.m. New York time, after earlier rising to $60.73 for the biggest intraday increase since Sept. 27. The shares of the Palo Alto, California-based company had declined 18 percent this year before today.
Siemens, Europe’s largest engineering company, said last week that it would “selectively exit” radiation therapy, potentially adding to Varian’s market share, Tycho Peterson, an analyst with JPMorgan Chase & Co., wrote in a research note today. Elekta AB, based in Stockholm, may also benefit, he said.
“Siemens has been losing share in this market for years to both Varian and Elekta, so the news does not come as a complete surprise,” Peterson said in the note. “The exit should accelerate additional share shift and could provide upside to Street estimates.”
--Editors: Chris Staiti, Bruce Rule
To contact the reporter on this story: Meg Tirrell in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Reg Gale at email@example.com