Accuray Expands Product Portfolio, Radixact Now CE-Marked

Accuray Inc ARAY is expanding its product portfolio on the back of regulatory approvals. The company recently announced the receipt of CE-Marking for its Radixact Treatment Delivery System, Precision Treatment Planning System and iDMS Data Management System.

Additionally the company's flagship CyberKnife and TomoTherapy systems continue to win accolades. Accuray presented significant clinical data demonstrating the growing utilities of both the products at the recently concluded annual meeting of the American Association of Physicists in Medicine (AAPM).

Although the expanding product portfolio and the growing clinical evidence is positive, we believe that they are yet to translate into key growth drivers for the company. Year-to-date, Accuray's share price is down almost 19.11%, which primarily reflects the company's modest third quarter results and fiscal year 2016 view cut.

Accuray is set to report its fourth quarter and fiscal 2016 results on Aug 17.
 

ACCURAY INC Price

ACCURAY INC Price | ACCURAY INC Quote

The Radixact System Holds Promise

Notably, in June, all the three systems that form the Radixact System had received 510K clearance from the U.S. Food and Drug Administration (FDA). (Read More: Accuray Receives 510(k) FDA Clearance for Radixact)

As per data available from Markets & Markets, the radio-therapy market is estimated to reach $7.54 billion by 2020, which presents a considerable growth opportunity for Accuray. We believe the addition of Radixact in Accuray's product portfolio will aid the company in penetrating this fast growing market.

As per Accuray, the Radixact system features a more powerful linear accelerator as compared with the TomoTherapy system. Moreover, the availability of MVCT imaging and helical treatment delivery will help clinicians administer highly conformal and homogeneous dose to any cancer affected region, without hurting the surrounding normal healthy tissues.

The CE-Mark will now allow Accuray to commercialize the product in certain markets of Europe. The company plans to ship the first product during first quarter of 2017.

CyberKnife and TomoTherapy in Focus

According to the second quarter of 2016 MD Buyline Market Intelligence Briefing, CyberKnife and TomoTherapy systems received the highest composite overall user satisfaction rating among radiation treatment delivery systems in the U.S.

Meanwhile, Accuray presented more than 45 studies on the use of the CyberKnife at the annual meeting of the AAPM. The clinical data displayed the growing utility of the InCise Multileaf Collimator (MLC) with the CyberKnife System to deliver full-body radiosurgery.

Accuray also presented clinical data from more than 35 studies related to TomoTherapy, which confirmed the versatility and effectiveness of the system in treating cancer patients with extreme precision.

Last month, Accuray announced preliminary results from a prospective, phase II trial evaluating once-daily accelerated partial breast irradiation (APBI) in patients treated with the TomoTherapy system.

The trial reported no recurrence of cancer in the treated breast at median follow-up of 34 months. Additionally, more than 95% of patients and their physicians rated cosmesis — preservation of the normal appearance of the breast — as good or excellent.

Zacks Rank & Key Picks

Accuray carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the medical space are Cryolife Inc CRY, Natus Medical BABY and Masimo Corp MASI. All the three stocks sport a Zacks Rank #1 (Strong Buy).

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