Accuray Incorporated (ARAY) presented data from several studies on its TomoTherapy and CyberKnife systems at the 56th Annual American Society for Radiation Oncology (ASTRO) meeting held recently at San Francisco. The additional data at the meeting demonstrated that Accuray’s TomoTherapy and CyberKnife systems provide accurate dose delivery and tumor management.
Despite positive data on Accuray’s TomoTherapy and CyberKnife systems, shares of the company fell nearly 5.4% in the trading sessions following the announcement, to close at $7.73 yesterday.
ASTRO 2014 TomoTherapy clinical presentations focused on treatment of breast, brain, and head and neck cancer, and illustrated the system's versatility, efficiency and effectiveness in the treatment of routine or complex cases.
Meanwhile, ASTRO 2014 CyberKnife presentations focused on a range of indications including lung, brain and prostate cancer. The presentations highlighted the benefits of Accuray’s system that automatically tracks the tumor and adjusts the beam, maximizing the dose delivered to the tumor and minimizing side effects.
In Sep 2014, Accuray entered into an exclusive three-year group purchasing agreement with leading healthcare improvement company – Premier, Inc – to expand its network of CyberKnife M6 and TomoTherapy HDA product portfolios.
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 open up 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 and reliability, service response time and applications training for both the systems.
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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