ViewRay, Inc. recently reached a couple of collaborative agreements with two medical device majors, namely Elekta AB and Medtronic plc. (MDT) in the field of MR-guided radiation therapy.
With Elekta, an equipment and software provider for cancer and brain disorders, ViewRay signed a non-binding memorandum of understanding to advance in the field of MR-linac technology. This will likely improve MR-linac’s application as a radiation therapy with better precision, medical outcomes and operational efficiency.
Per this deal, both companies expect to work on clinical studies for exploring the impact of MR-guided therapy in oncology and coordinate on expanding its potential into other areas that could benefit from the technology.
The companies are also exploring initiatives, such as the formation of a cooperative group and working on healthcare policy.
Under the financial terms of this contract, Elekta will invest capital of up to a 9.9% minority interest in ViewRay. However, this is subject to conditions stated in a commitment pact that includes the condition of consummation of an equity capital raise of minimum $75 million. Elekta's investment in ViewRay is contingent on an aggregate cap of $36 million.
With Medtonic, ViewRay entered into a clinical collaboration through a non-binding memorandum of understanding. According to ViewRay, the partnership aims at exploring the clinical benefits of the MRIdian MR-guided radiation therapy system. Alike the Elektra alliance, Medtronic is also committed to invest in a minority stake in ViewRay, pending the approvals described in a commitment agreement.
The combined investments from Elekta and Medtronic are based upon the collaboration of an equity capital raise of at least $75 million.
Market Prospects
Going by a MarketsandMarkets report, the global Magnetic Resonance Imaging systems market is of late growing immensely on the back of an increasing geriatric population. This market was valued at $5.59 billion in 2017 and is projected to see a CAGR of 3.9% to $7.09 billion by 2023.
Looking at this growth trajectory, we believe, ViewRay’s double collaborations with the MedTech majors will be well-timed and strategic.
Share Price Performance
Shares of ViewRay have rallied 21.9% in a month’s time, outperforming the industry’s 4.7% growth.
Zacks Rank and Key Picks
ViewRay currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , National Vision Holdings, Inc (EYE - Free Report) and NuVasive, Inc .
Haemonetics has a Zacks Rank #1 (Strong Buy) and a projected long-term earnings growth rate of 13.5%.
National Vision’s long-term earnings growth rate is estimated at 17.8%. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NuVasive’s long-term earnings growth rate is estimated at 10.9%. It currently carries a Zacks Rank of 2.
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ViewRay, Inc. recently reached a couple of collaborative agreements with two medical device majors, namely Elekta AB and Medtronic plc. (MDT) in the field of MR-guided radiation therapy.
With Elekta, an equipment and software provider for cancer and brain disorders, ViewRay signed a non-binding memorandum of understanding to advance in the field of MR-linac technology. This will likely improve MR-linac’s application as a radiation therapy with better precision, medical outcomes and operational efficiency.
Per this deal, both companies expect to work on clinical studies for exploring the impact of MR-guided therapy in oncology and coordinate on expanding its potential into other areas that could benefit from the technology.
The companies are also exploring initiatives, such as the formation of a cooperative group and working on healthcare policy.
Under the financial terms of this contract, Elekta will invest capital of up to a 9.9% minority interest in ViewRay. However, this is subject to conditions stated in a commitment pact that includes the condition of consummation of an equity capital raise of minimum $75 million. Elekta's investment in ViewRay is contingent on an aggregate cap of $36 million.
With Medtonic, ViewRay entered into a clinical collaboration through a non-binding memorandum of understanding. According to ViewRay, the partnership aims at exploring the clinical benefits of the MRIdian MR-guided radiation therapy system. Alike the Elektra alliance, Medtronic is also committed to invest in a minority stake in ViewRay, pending the approvals described in a commitment agreement.
The combined investments from Elekta and Medtronic are based upon the collaboration of an equity capital raise of at least $75 million.
Market Prospects
Going by a MarketsandMarkets report, the global Magnetic Resonance Imaging systems market is of late growing immensely on the back of an increasing geriatric population. This market was valued at $5.59 billion in 2017 and is projected to see a CAGR of 3.9% to $7.09 billion by 2023.
Looking at this growth trajectory, we believe, ViewRay’s double collaborations with the MedTech majors will be well-timed and strategic.
Share Price Performance
Shares of ViewRay have rallied 21.9% in a month’s time, outperforming the industry’s 4.7% growth.
Zacks Rank and Key Picks
ViewRay currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , National Vision Holdings, Inc (EYE - Free Report) and NuVasive, Inc .
Haemonetics has a Zacks Rank #1 (Strong Buy) and a projected long-term earnings growth rate of 13.5%.
National Vision’s long-term earnings growth rate is estimated at 17.8%. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NuVasive’s long-term earnings growth rate is estimated at 10.9%. It currently carries a Zacks Rank of 2.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.6% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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