And what’s going to drive that replacement cycle is new technology. And this is a picture of our TrueBeam machine that rolled out about two year ago. And again, what we are focused on is giving the best quality treatment at the lowest possible cost for treatment. So this is looking at precision, putting the dose exactly where it needs to be, looking at patient throughput, getting treatment done in as little as 10 to 15 minutes that use to take 30 to 45 minutes, and a lot of work around workflow and usability and making our equipment easy to use.The equipping of emerging markets I'm going to come back to, we’ll show you a few statistics. But suffice it to say, if we were to bring the international markets not even to the full U.S. standard, we would need 10,000 machines around the globe, so a lot of growth opportunity outside of North America. Our service business is growing in the low to mid teens. As the machines become more complex, it’s more difficult for the hospital to service their won equipment. So we get a higher capture rate of the service contracts.
Varian Medical's CEO Presents At Bank Of America Merrill Lynch Healthcare Conference Call (Transcript)
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.