Accuray Incorporated ARAY recently announced the availability of its InCise Multileaf Collimator (MLC) for the CyberKnife M6 System in international markets, where it has already been approved for commercialization. Notably, the InCise MLC was launched in the U.S. market in February this year.
The announcement of the launch in international markets came shortly after Erasmus MC Cancer Institute in Rotterdam successfully evaluated the InCise MLC. Apart from this European evaluation site, two U.S. sites have previously completed their assessment of the InCise MLC. The device has successfully met all predetermined criteria.
Last month, Accuray declared the completion of the first patient treatment using the company’s CyberKnife M6 System with the InCise Multileaf Collimator (MLC). The treatment was part of an integrative effort with University of Pittsburgh Medical Center (UPMC). Notably, UPMC was one of the InCise MLC evaluation sites jointly working with Accuray.
In Feb 2015, Lancaster General Health hospital received the first commercially available InCise MLC for the CyberKnife M6 System. The hospital reportedly proffered the InCise MLC due to its efficiency and ability to cater to a broader range of patient cases.
Notably, CyberKnife M6 is a robotic radio surgery system which can treat both cancerous as well as non-cancerous tumors. The system’s mobility allows it to destroy tumors with enhanced precision by emitting radiation beams, while avoiding healthy tissues. In 2012, Accuray initially received the U.S. Food and Drug Administration (FDA) 510(k) approval for its CyberKnife M6 Series.
We believe the launch of the InCise MLC in the international markets marks a significant development for the company. The global radiation therapy market is on the verge of significant growth, primarily driven by higher incidence of cancer and an overall rise in aging population.
Demand for radiotherapy services in the Asia Pacific region is poised for major growth, primarily driven by China. The growth in the domestic market is mainly due to increasing occurrence of cancers, replacements of older radiotherapy systems and reimbursement levels for radiation therapy.
In such a lucrative growth scenario, the launch of its InCise Multileaf Collimator MLC for the CyberKnife M6 System should help Accuray gain significant contracts, going forward. This will eventually drive top-line growth at the company. However, the CyberKnife system involves significant capital spending, which many healthcare providers are reluctant to spend, primarily due to the prevailing sluggish macro-economic conditions.
Zacks Rank
Currently, Accuray has a Zacks Rank #3 (Hold). Better-ranked stocks in the medical sector are LeMaitre Vascular LMAT, SurModics SRDX and Capricor Therapeutics CAPR. While LeMaitre Vascular and SurModics sport a Zacks Rank #1 (Strong Buy), Capricor Therapeutics holds a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment