Keeping in line with its plan to expand through strategic partnerships and joint ventures, Accuray Incorporated (ARAY) entered into an exclusive three-year group purchasing agreement with a leading healthcare improvement company – Premier, Inc. The company expects this partnership to expand its network of CyberKnife M6 and TomoTherapy HDA product portfolios. However, financial terms of the deal have not been disclosed.
Under the contract, Accuray will gain access to over 3,000 hospitals and 110,000 other providers, including oncology centers which are served by Premier. In addition, the deal will allow Accuray to partner with Premier’s integrated delivery network partners, boosting its group purchasing organizations (GPO) strategic accounts contract portfolio.
Per the deal, Accuray's radiation oncology treatments were made available to Premier member hospitals and providers starting Sep 1, 2014.
The partnership with Premier is expected to significantly enhance the visibility of Accuray’s CyberKnife and TomoTherapy Systems, provide improved deal visibility to radiation equipment purchasing decisions and, ultimately, result in new opportunities for Accuray equipment and services.
In May, Accuray cut a similar deal with leading national healthcare solutions organization –Amerinet, to offer its radiation oncology solutions to the latter. Per the contract, Accuray’s CyberKnife M6 and TomoTherapy H Series were immediately made available to over 3,000 member hospitals served by Amerinet.
Accuray’s CyberKnife and TomoTherapy Systems represent great potential for the company. According to the latest MD Buyline Market Intelligence Briefing Report, Accuray’s Systems have received the highest composite overall user satisfaction rating among radiation treatment delivery systems in the U.S.
Apart from continuous improvement in customer satisfaction, the reports also indicate higher scores for system performance, system reliability, service response time and applications training for both the systems.
Recently, Accuray signed the first multi-system purchase deal for its TomoTherapy HDA system with the Veterans Administration (VA) Health System and expects more such deals to follow. The company not only intends to increase its presence in GPO and Integrated Delivery Network (IDN) related groups, but also government customer channels such as the Department of Defense and the VA Health System.
The latest partnership with Premier hints at Accuray’s relentless focus to drive improved patient care through meaningful technical innovation. With growing market confidence in the enhanced performance and clinical versatility of the CyberKnife and TomoTherapy Systems, Accuray is placed well to serve the radiation oncology community.
Currently, Accuray carries a Zacks Rank #3 (Hold). Better-ranked medical instrument stocks include Alphatec Holdings, Inc. (ATEC), ERBA Diagnostics, Inc. (ERB) and RTI Surgical Inc. (RTIX). All these stocks sport a Zacks Rank #1 (Strong Buy).
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