Back to top

Analyst Blog

Radiosurgery systems maker, Accuray Inc. (ARAY - Analyst Report) announced that U.S.-based Lancaster General Health is the first to use its latest CyberKnife M6 system for treating patients. This unique system is capable of treating large, complicated tumors (which were rendered untreatable earlier), thereby increasing the number of patients who can benefit from this treatment.

The CyberKnife system is a non-invasive alternative to traditional surgery and is the first and only commercially available intelligent robotic radiosurgery system designed to treat solid tumors anywhere in the body.

The CyberKnife M6 FIM and FM Systems feature the unique InCise Multileaf Collimator (“MLC”), specially designed for stereotactic radiosurgery (SRS) and stereotactic body radiation therapy (SBRT) treatments. The flexibility of MLC helps deliver precise and accurate radiation dosages from multiple angles in less time, and thus improves the efficacy and treatment outcomes in the field of radiation oncology.

Its special features include a 3D robot, which can revolve around the patient in order to deliver non-isocentric, non-coplanar radiations to match the exact shape of the tumor. The InCise MLC’s capability is further enhanced when combined with CyberKnife's Synchrony System, which allows the CyberKnife M6 System to locate tumors while moving and instantly rectifying for their movement during treatment.

The company had launched the unmatched CyberKnife M6 System at the ASTRO meeting in 2012. The system was approved by the U.S. Food and Drug Administration (FDA) in Nov 2012. In Feb 2013, the European CyberKnife Center Munich-Grosshadern (ECZM), a global pioneer in radiosurgery, treated the world's first patient with the CyberKnife M6 System.

Our Take

Although we are impressed with the progress in the adoption of Accuray’s CyberKnife M6, a lot needs to be done to bring the company back on track. We remain concerned over Accuray’s declining top and bottom line along with reduced full-year guidance. Management needs to improve its higher-margin product revenues and aggressively remediate its structural issues for new offerings to fully contribute to total sales.

Moreover, Accuray remains susceptible to the weak U.S. and European markets, reimbursement uncertainties and faces stiff challenges from competitive product offerings. The product line faces stiff competition from Varian Medical System’s (VAR - Analyst Report) TrueBeam technology.

Accuray has a Zacks Rank #4 (Sell). While we prefer to avoid the stock, other medical stocks such as Natus Medical (BABY) and Myriad Genetics (MYGN - Analyst Report) warrant a look. These stocks carry a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 2.99 +2.75%
CHINA BIOLO… CBPO 46.81 +1.62%
CHIPOTLE ME… CMG 688.89 +1.54%
NN INC NNBR 28.43 +1.46%
INTEL CP INTC 34.88 +1.09%