Accuray CyberKnife M6 System Now Available in Manhattan - Analyst Blog

Developer of radiation therapy systems, Accuray Inc (ARAY) recently announced that Winthrop University Hospital's NYCyberKnife Center has started treating patients with the company's CyberKnife M6 System. Notably, it is the first CyberKnife system used for treating tumors in Manhattan.

CyberKnife M6 is a robotic radio surgery system which treats 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.

The device is also used to deliver high doses of radiation to tumors anywhere in the body, including the prostate, lung, brain, spine, liver, pancreas and kidney. This form of treatment is apt for surgically complex tumors or patients seeking a non-invasive option.

The CyberKnife system is clearly more efficacious than the other radiation therapy systems presently available as it offers accuracy while delivering radiation, even if there is movement by the patient during the treatment. This allows surgeons to carry out medical processes with utmost exactness while also bringing down the risk of side effects.

We believe the higher efficiency of the CyberKnife system will drive Accuray's top-line results going forward. The company's results are also expected to benefit from lucrative partnerships.  

In Sep 2014, Accuray partnered Premier, Inc., which will help its CyberKnife M6 and TomoTherapy HDA products to gain significant market traction. We believe that the partnership will also open up new revenue generating avenues for Accuray's equipment and services.

However, Accuray's dismal result remains a concern. In the recently concluded first quarter of fiscal 2015, the company's earnings and revenues both fell shy of the Zacks Consensus Estimate.

Further, operating loss widened 19.6% year over year to $15.3 million, mainly owing to higher expenses.

Additionally, growing competition from the likes of Varian Medical Systems (VAR), Elekta AB (EKTAY) and IsoRay (ISR) is a major headwind, in our view

Currently, Accuray carries a Zacks Rank #4 (Sell).