Leading radiosurgery systems maker Accuray Incorporated (ARAY) has formed a new functional organization in an effort to boost data collection and utilization of its coveted CyberKnife robotic radiosurgery system.
The new organization, dubbed “Medical Affairs,” will focus on offering strategic guidance on clinical processes and will play a vital role in furthering medical research and development and supporting the efforts of clinicians to advance the field of radiosurgery and improve patient care. Medical Affairs represents a part of the company’s ongoing commitment toward clinically-driven research, innovation and customer support.
California-based Accuray is a global leader in the field of radiosurgery and provides a non-surgical treatment option for patients diagnosed with cancer. In the radiation oncology market, the company competes head-to-head with Varian Medical (VAR) and TomoTherapy (TOMO).
CyberKnife leverages a technology that differentiates it from traditional treatments. It is a non-invasive alternative to traditional surgery and is the first and only commercially available intelligent robotic radiosurgery system designed to treat solid tumors anywhere in the body.
CyberKnife continues to gain significant traction in the global medical communities, thereby boosting Accuray’s sales. To date, more than 100,000 people have been treated with CyberKnife globally.
Accuray recently secured approval of the U.S. Food and Drug Administration (FDA) to market a new component of its CyberKnife system for the treatment of patients with lung cancer. The approved component, called “Lung Optimized Treatment,” will benefit lung cancer patients who are inoperable or ineligible for invasive treatments. Radiosurgery has been found to be effective for inoperable patients given its ability to offer good local control and survival rates.
Accuray has provided a conservative guidance for fiscal 2011 with a sizable sales deficit, expected to be a drag on the top and bottom lines for the year. Moreover, the CyberKnife system faces a stiff challenge from competitive product offerings, especially from Varian. Currently, we have an Underperform recommendation on the stock. Accuray currently retains a Zacks #5 Rank, which translates into a short-term “Strong Sell” recommendation.
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