Yahoo Finance Accuray's (ARAY) Latest Collaboration to Improve Patient Care
Accuray Incorporated ARAY recently announced its partnership with Genolier Innovation Hub, a fully-owned subsidiary of AEVIS VICTORIA SA. The tie-up aims to support a unique approach to improve patient outcomes.
The Genolier Innovation Hub (which will be located at the center of the Genolier Healthcare Campus in Genolier, Switzerland) is expected to unite companies from the MedTech, pharma and biosciences sectors with physicians and scientists under one roof. The goal of this collaboration is to bring medical and technological advances to patients at a faster rate. The hub is expected to open in early 2024.
The latest partnership is expected to be a step forward for Accuray to strengthen its radiation therapy business on a global scale.
Rationale Behind the Tie-Up
The Genolier Innovation Hub will likely offer diverse workspaces to meet the wide-ranging requirements of the participants, including operating rooms to support simulation-based training, among others. Accuray expects to leverage it as a global training center where customers will have the opportunity to obtain hands-on training and learn about advanced radiation therapy techniques — using its CyberKnife and Radixact Systems — from well-known faculties.
The CyberKnife and Radixact Systems are radiation therapy devices that have delivered highly-effective treatments for a broad range of tumors almost everywhere in a patient’s body. The two systems are currently being used at the Clinique Générale-Beaulieu in Geneva and the Radixact System is also likely to be used at the Clinique de Genolier, both flagship clinics of the Swiss Medical Network, AEVIS's main shareholding.
Per Accuray’s management, the latest tie-up is expected to pave the way for speeding up the progress made in patient-centric care.
AEVIS’ management feels that the collaboration with Accuray will likely create a model that sets a new standard in the healthcare industry.
Industry Prospects
Per a report by MarketsandMarkets, the global radiotherapy market is valued at $6.3 billion in 2022 and is anticipated to reach $8.1 billion by 2027 at a CAGR of 5.1%. Factors like technological advancements in radiotherapy and the rising incidence of cancer are likely to drive the market.
Given the market potential, the latest collaboration is expected to provide a significant boost to Accuray’s business globally.
Notable Developments
Last month, Accuray reported its fourth-quarter fiscal 2022 results, wherein it saw a year-over-year uptick in Product revenues. Continued strong demand for ClearRT Helical kVCT Imaging for the Radixact System, the VOLO Ultra enhancement to the Accuray Precision treatment planning system for the Radixact System and CyberKnife S7 platform was also seen during the reported quarter.
In July, Accuray announced new clinical studies that reinforce the value of its CyberKnife platform in the treatment of neurological indications with non-invasive radiosurgery.
In June, Accuray announced its collaboration with Limbus AI Inc. to enhance its adaptive radiotherapy capabilities.
Price Performance
Shares of the company have lost 35.7% in the past year compared with the industry’s 31.4% fall and the S&P 500's 12.7% decline.
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Zacks Rank & Key Picks
Currently, Accuray carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, ShockWave Medical, Inc. SWAV and McKesson Corporation MCK.
AMN Healthcare, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.7%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has lost 8.6% compared with the industry’s 36.3% fall in the past year.
ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has gained 31.8% against the industry’s 31.4% fall over the past year.
McKesson, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 9.9%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 13%.
McKesson has gained 79.3% against the industry’s 13.4% fall over the past year.
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