Varian Medical Systems

(VAR) - Get Report

shares jumped Monday after the medical equipment company said it was experiencing strong order growth in its oncology systems business.

Varian said demand for new products for IGRT, image-guided radiation therapy, in the fourth-quarter was driving 20% order growth over a year ago.

"Demand for our IGRT-enabled products for more precise forms of radiation therapy and radiosurgery continues to be robust, and we have established a clear lead in the deployment of this technology," the company said.

Shares jumped $6.16, or 17.8%, to $40.80. More than 3 million shares changed hands -- twice the average daily trading volume.

The Palo Alto, Calif.-based company made the announcement ahead of its annual investor meeting Tuesday.

In July,

the company forecast flat North American orders in the third quarter.

Varian reports fourth-quarter and full-year results Oct. 27.