Accuray (ARAY) Launches VitalHold in Japan for Use With Radixact
Accuray Incorporated ARAY announced the launch of its VitalHold package in Japan. The company commenced sales from Nov 30, 2023. This package supports surface-guided radiation therapy (SGRT) on the Radixact System, advancing breast cancer treatment.
The Radixact System, with the VitalHold package, will widen Accuray's offerings. With more than 100 units of the Radixact System in routine use for cancer treatment in the Japanese market, this latest technological innovation is poised to play a pivotal role, particularly in the treatment of breast cancer.
Accuray's focus on advancing radiotherapy will likely solidify its foothold in the Japanese market and reinforce its contribution to the development of cancer care.
Price Performance
Shares of ARAY have risen 31.6% year to date against the industry’s 3.3% decline. The S&P 500 has increased 19.6% in the said time frame.
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Enhancing Precision With SGRT
The VitalHold feature integrates SGRT capability on the Radixact System using the Catalyst+ HD system by C-RAD. This integration facilitates deep inspiration breath hold (DIBH) treatments, particularly crucial in addressing left-sided breast cancers. SGRT technology ensures highly accurate positioning by scanning the patient's body surface with a high-resolution camera and reconstructing it as a real-time 3D image. This capability aids medical teams in visualizing and maintaining the precise alignment of the patient during treatment, contributing to increased reproducibility.
DIBH irradiation is currently the gold standard in treating left breast cancer due to its ability to separate the chest wall and targeted tumor from the heart. The VitalHold package, by enabling markerless patient setup and real-time confirmation of correct positioning, not only streamlines the treatment process but also reduces stress on patients. This is particularly significant as it eliminates the need for permanent marks or lines on the patient's body.
The markerless patient setup and the ease of performing DIBH treatments mark a considerable advancement in the efficiency and patient experience of breast cancer radiotherapy.
Industry Prospects
Per a report by Market Data Forecast, the radiation therapy market in the Asia Pacific region was estimated at $1.37 billion in 2023 and is anticipated to reach $1.90 billion by 2028 at a CAGR of 6.8%. Several factors like large and increasing elderly population, better healthcare infrastructure, increasing per capita income and rising cancer cases are likely to drive demand for radiation therapies.
Given the market potential, the latest product offering is expected to provide a significant boost to Accuray’s business in the country.
Recent Developments
Last month, the company reported first-quarter fiscal 2024 results, wherein its overall top-line performance and robust Product revenues were encouraging. Geographically, Accuray’s performance was strong in EIMEA (Europe, India, the Middle East and Africa), China and Japan, which was also impressive. The expansion in the global installed base looks promising.
Continued strong demand for Accuray’s CyberKnife, Radixact and TomoTherapy platforms buoys optimism. The gross margin expansion also bodes well. However, dismal bottom-line performance and a decline in gross orders were disappointing.
In October, Accuray announced that an online adaptive therapy option, Cenos, is under review with the FDA for a 501(k) clearance. Cenos will be used with ARAY’s Radixact system, enabling medical care teams to quickly and efficiently make the necessary adjustments to a treatment plan while operating.
The therapy option leverages real-time adaptive therapy through the company's proprietary Synchrony technology and offline adaptive with PreciseART radiotherapy to check for any anatomical changes during radiation delivery. The solution was developed in partnership with Limbus AI. The latest offering is expected to significantly strengthen Accuray’s TomoTherapy radiation therapy platform on a global scale.
In October, the CNNC-Accuray joint venture Tomo C radiation therapy system got approval from the Chinese National Medical Products Administration.
Accuray Incorporated Price
Accuray Incorporated price | Accuray Incorporated Quote
Zacks Rank & Stocks to Consider
Currently, Accuray carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, Biodesix BDSX and Integer Holdings Corporation ITGR.
DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 18.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.55%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have risen 35.9% year to date compared with the industry’s 2.3% growth.
Biodesix, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 32.3% for 2024. BDSX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 9.76%.
Biodesix’s shares have lost 35.2% year to date compared with the industry’s 11.9% decline.
Integer Holdings, sporting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have rallied 27.4% year to date against the industry’s 4.9% decline.
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