Leading radiosurgery systems maker Accuray Incorporated (ARAY) recently disclosed that the Instituto Neurologico de Colombia (“INDEC”) of South America, for the first time, has started treating its patients with the CyberKnife Radiosurgery System in May 2012. The INDEC is the largest clinical neuroscience center in Latin America, which houses some of the best technologies and physicians in the region.
The Columbia-based INDEC is the pioneer institute in South America to be using this advanced robotic radiosurgery device to cure both cancerous as well as non-cancerous tumors in the body. The first patient treated with the CyberKnife at the INDEC had a complex spinal tumor which could not be treated with any other medical device available at the center.
Since then, the CyberKnife is being used to treat all kinds of tumors (including both intracranial and extracranial) in a safe non-invasive manner that were earlier rendered untreatable in the sub-continent.
Accuray is a renowned radiation oncology company with a rich history of rapid innovation and cutting-edge technologies. CyberKnife and the TomoTherapy Systems are two of its flagship products. With the market size for the global radiation therapy market expected to reach $3.6 billion by 2018 (as per GlobalData), Accuray is focussing on investing in emerging markets to expand its business.
The CyberKnife System boasts of a technology that differentiates it from traditional treatments. CyberKnife, a non-invasive alternative to conventional surgery, is the first and only commercially available intelligent robotic radiosurgery system designed to treat solid tumors anywhere in the body.
CyberKnife System reduces the overall time and resources required for surgery, when compared to traditional methods. This leads to an increase in the volume of procedures performed and lower per procedure costs for the hospital.
Accuray continues to enjoy healthy demand for CyberKnife radiosurgery system as evidenced by sustained growth in the number of patients receiving treatment with the device. Moreover, the acquisition of rival TomoTherapy has bolstered the company’s foothold in the radiation oncology space.
However, Accuray remains susceptible to reimbursement uncertainties and faces stiff challenges from competitive product offerings of Varian Medical (VAR). We currently have a Neutral recommendation on Accuray. The stock currently retains a Zacks #2 Rank, which translates into a short-term Buy rating.Read the Full Research Report on ARAY
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