Radiation Treatment Companies To Consider In Light Of The Earthquake (CBLI, VAR, ARAY)

Shares of Cleveland BioLabs, Inc. CBLI are rallying sharply this morning on rumors that the company's irradiation treatment technology might be helpful for Japan's quake-induced nuclear accident.

Companies like Varian Medical Systems VAR and Accuray Incorporated ARAY could also benefit from increased business in this area.

Varian Medical Systems provides cancer therapy systems and X-ray products worldwide. The company's Oncology Systems segment designs, manufacturers, sells, and services hardware and software products for treating cancer. Its product line includes linear accelerators, brachytherapy afterloaders, treatment simulation, verification equipment, and accessories; as well as information management, treatment planning, and image processing software. Its X-ray Products segment designs, manufactures, and sells x-ray tubes for use in a range of applications, including computed tomography, scanning, radiographic or fluoroscopic imaging, mammography, special procedures, and industrial applications; and flat panel digital image detectors for filmless x-ray imaging.

The company recently announced it would be buying back $280 million in shares from Bank of America. The $8 billion market-cap company is trading at 17 times 2011 earnings. The company is set to report second quarter earnings following the close of regular trading on April 27, 2011.

Accuray might benefit from its TomoTherapy acquisition, which it just announced last week for $277 million. TomoTherapy markets advanced radiation therapies for treating multiple cancer types.