Momentum Continues for Accuray

Leading radiosurgery systems maker Accuray Incorporated (ARAY - Analyst Report) continues to witness significant adoption of its popular CyberKnife radiosurgery system and the TomoTherapy radiation therapy system globally. The California-based company said, at the 30^th Annual J.P. Morgan Healthcare Conference in San Francisco, that global installation base for its therapy systems have crossed 600 across 33 nations in roughly a decade.   

Medical centers continues to adopt the company’s innovative radiosurgery and radiation therapy systems globally thanks to the growing demand for effective radiation oncology treatments in emerging growth markets. The growing traction is also backed by increasing clinical evidence which supports the benefits of the company’s technologies.

The increasing uptake of the CyberKnife and TomoTherapy systems reinforces Accuray’s foothold in the rapidly growing radiation oncology space. The growing installation base should help drive the company’s revenues through service agreements.

Accuray also stated that its first-generation CyberKnife and TomoTherapy systems have reached the end of their life cycle and it envisions emerging opportunities for organic replacement business.   

Accuray’s CyberKnife system boasts of a technology that differentiates it from traditional treatments. CyberKnife, a non-invasive alternative to conventional surgery, is the first and only commercially available intelligent robotic radiosurgery system designed to treat solid tumors anywhere in the body.

The acquisition of TomoTherapy has bolstered Accuray’s foothold in the radiation oncology market. The merger marked the union of TomoTherapy’s best-in-class radiation therapies and Accuray’s coveted radiosurgery systems to create a leading player in this market.

While Accuray is expected to benefit from the gradual recovery in hospital capital equipment spending, it remains exposed to reimbursement uncertainties and faces stiff challenges from competitive product offerings of Varian Medical (VAR - Analyst Report). We currently have a Neutral recommendation on the stock, which is in line with a short-term Zacks #3 Rank (Hold).

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