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Accuray's (ARAY) CyberKnife System Gets Shonin Approval

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Accuray Incorporated (ARAY - Free Report) recently received approval from the Japanese Ministry of Health, Labor and Welfare (Shonin) with respect to marketing the CyberKnife Robotic Radiosurgery System in Japan. Presently this system is utilized for treating trigeminal neuralgia (TN) in the United States, EIMEA and certain other parts of the globe.

The Shonin approval is likely to enable more TN patients to get access to a high-precision radiosurgery treatment that is traditionally delivered in just one outpatient procedure.

This approval will not only provide a boost to the CyberKnife System but also strengthen Accuray’s global foothold.

Few Words on TN

TN is a chronic pain condition, affecting the trigeminal nerve, which carries sensation from the face to the brain and can be extremely painful when experienced. TN primarily occurs in people above 50 and is more common in women than men. Apart from this, people diagnosed with this condition require long-term medical care, which starts with medication to block the pain signals sent to the brain.

Significance of the Approval

Per management, the approval reinforces Accuray’s commitment toward offering customers with innovative products that broaden the potential to utilize radiation in a new field of application, which can improve the quality of patient care as well as experience.

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The system offers a proven, non-surgical option for the treatment of TN without a fixed frame that must be secured to the patient's head to prevent movement, which is necessary with other devices.

Market Prospects

Per a report by MarketsandMarkets, the global radiotherapy market is worth $5.9 billion in 2021 and is projected to reach $7.3 billion by 2026 at a CAGR of 4.2% during the forecast period (2021-2026). The growing incidence of cancer and technological advancements in radiotherapy are the primary factors driving this market’s growth.

Hence, this approval comes at an opportune time for Accuray.

Recent Developments

In November, Accuray announced that globally-driven clinical data supports the use of the CyberKnife robotic radiotherapy platform for the delivery of stereotactic radiosurgery (SRS) treatments for neurological diseases.

In October, the company announced that a study published in Frontiers in Oncology found that early-stage breast cancer patients could experience significant improvements in survival if treated with accelerated partial breast irradiation (APBI) delivered utilizing the Accuray CyberKnife robotic radiotherapy platform.

Price Performance

Shares of the Zacks Rank #2 (Buy) company have gained 6.8% in the past year compared with the industry’s growth of 7.6%.

Other Stocks to Consider

Some other top-ranked stocks in the broader medical space include Thermo Fisher Scientific Inc. (TMO - Free Report) , McKesson Corporation (MCK - Free Report) and NextGen Healthcare, Inc. (NXGN - Free Report) .

Thermo Fisher surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.02%. The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Thermo Fisher’s long-term earnings growth rate is estimated at 14%. The company’s earnings yield of 3.7% compares favorably with the industry’s (3.6%).

McKesson beat earnings estimates in each of the trailing four quarters, the average surprise being 19.9%. The company currently carries a Zacks Rank #2.

McKesson’s long-term earnings growth rate is estimated at 8.9%. The company’s earnings yield of 9.9% compares favorably with the industry’s 3.2%.

NextGen Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 16%. The company currently carries a Zacks Rank of 2.

NextGen Healthcare’s long-term earnings growth rate is estimated at 8.5%. The company’s earnings yield of 5.9% compares favorably with the industry’s (4.1%).