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Leading radiosurgery systems maker Accuray Incorporated ( ARAY - Analyst Report ) entered into a collaborative research alliance with Deutsches Krebsforschungszentrum (“DKFZ”), a German Cancer Research Center. Per the master agreement, Accuray and DKFZ will join forces to advance research in the field of radiation oncology. This latest partnership is yet another addition to Accuray’s long history of association with DKFZ.
Accuray will be working with DKFZ and the University of Heidelberg to expand its cancer treatment product portfolio, especially the CyberKnife and the TomoTherapy Systems.
Accuray continues to enjoy healthy demand for CyberKnife radiosurgery system as evidenced by sustained growth in the number of patients receiving treatment with the device. Moreover, the acquisition of rival TomoTherapy has bolstered the company’s foothold in the radiation oncology space.
Earlier, Accuray had collaborated with DKFZ to develop the Iris Variable Aperture Collimator, which when used with the CyberKnife Robotic Radiosurgery System discharges a lesser dose during treatment and also reduces procedural time. There is also a pending TomoTherapy research collaboration intended to further explore opportunities associated with the helical TomoTherapy.
Accuray is a renowned radiation oncology company with a rich history of rapid innovation and cutting-edge technologies. CyberKnife and the TomoTherapy Systems comprise two of its flagship products. The CyberKnife is a full body radiosurgery device used to treat cancerous tumors and the TomoTherapy Systems are fully integrated and advanced radiation therapy systems for all types of cancer treatments.
The company installed 22 new CyberKnife and TomoTherapy systems during the most recent quarter, taking the aggregate global installed base to 635 units. The company added $64.2 million of new system orders in the quarter, leading to a total system backlog of $279.6 million.
However, Accuray remains susceptible to reimbursement uncertainties and faces stiff challenges from competitive product offerings of Varian Medical ( VAR - Analyst Report ) . We currently have a Neutral recommendation on Accuray. The stock currently retains a short-term Zacks #3 Rank (Hold).
Read the full Analyst Report on VAR
Read the full Analyst Report on ARAY