Leading radiosurgery systems maker Accuray Incorporated (ARAY) has secured approval of the U.S. Food and Drug Administration (FDA) to market a new component of its CyberKnife VSI robotic radiosurgery System for the treatment of patients with lung cancer.
The approved component, dubbed “Lung Optimized Treatment,” will benefit lung cancer patients who are inoperable or ineligible for invasive treatments. According to Accuray, radiosurgery has been found to be effective for inoperable patients given its ability to offer good local control and survival rates.
Treatment of medically inoperable lung cancer patients is complex due to the movement of tumors (especially central and chest wall tumors) with breathing and their proximity to critical anatomical structures. Radiation oncologists place tiny gold seeds (implanted through incision) called “fiducial markers” for real-time tracking of the tumor position, which help them to deliver therapy while safeguarding surrounding healthy tissues.
However, implantation of fiducial markers is associated with a high risk of pneumothorax (a collapsed lung). Lung Optimized Treatment has been designed to offer physicians an accurate, more flexible and safe therapy alternative for lung cancer patients, especially those who are ineligible for fiducial implantation and are at high risk of pneumothorax. It enables treatment without a single incision while protecting nearby healthy tissues and structures.
As such, CyberKnife radiosurgery with Lung Optimized Treatment offers physicians a non-invasive therapy option while eliminating the need for fiducial markers. Its unique motion management capabilities, including the revolutionary tracking system, enables real-time monitoring and correction of tumors that move with a patient’s breathing patterns and those near to critical structures.
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. Till date, more than 100,000 people have been treated with CyberKnife globally.
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 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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