Accuray Incorporated (ARAY - Free Report) recently published data showing the benefits of its flagship CyberKnife in treating low- and intermediate-risk prostate cancer. Per management, the survival rates in low-risk patients was an impressive 97-100%, while the same in intermediate-risk patients was observed to be 88-97%.
Notably, the CyberKnife study has been the largest one conducted till date evaluating stereotactic body radiation therapy (SBRT) in patients with localized prostate cancer. Per management, Accuray examined over 300 prostate cancer patients across 21 centers throughout the United States.
Clearly, this fortifies Accuray’s foothold in the radiotherapy market.
Following the announcement, shares of Accuray inched up 1.2% to $4.15 at close. We believe positive developments such as these will provide cushion to the stock, which has declined 3.5% against the industry’s rise of 28.7% in a year’s time. The current level is also lower than the S&P 500 index’s increase of 16.9%.
The stock currently has a Zacks Rank #3 (Hold).
His Prostate Cancer website estimates 164,690 men with prostate cancer in 2018, worldwide.
Per MarketsandMarkets, the global radiotherapy device market is projected to reach $9.47 billion by 2022, at a CAGR of 6.8%.
Hence the latest development has been a well-timed one for the California-based provider of radiation therapy.
CyberKnife in Focus
Accuray’s CyberKnife system helps clinicians to effectively treat cancer. Notably, its is the only robotic radiotherapy system that offers highly precise, non-surgical treatment for tumors and lesions anywhere in the body. Per management, the system comes with an intra-fraction motion tracking and correction capability.
The much-coveted system has been consistently driving Accuray’s top line. In fact, in the last reported quarter, the company received a multisystem order for CyberKnife from Mercy system in St. Louis.
Additionally, the company saw strong contribution from CyberKnife system orders in Europe, which exceeded management’s expectations.
Some better-ranked stocks in the broader medical space are athenahealth (ATHN - Free Report) , Baxter International (BAX - Free Report) and Veeva Systems (VEEV - Free Report) .
athenahealth has a long-term expected earnings growth rate of 17.6%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Baxter’s long-term earnings growth rate is projected at 12.4%. The stock carries a Zacks Rank #2 (Buy).
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #1.
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