Radiosurgery systems maker,
) published encouraging data about its CyberKnife Robotic
Radiosurgery System, which provides stereotactic body radiation
therapy (SBRT) to treat prostrate cancer.
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Clinical findings from the 5-year long term study of 304 patients
demonstrated the efficacy of the device in successfully treating
patients with low and intermediate risks of prostrate cancer. It
has been found that majority of the people with such risks
recorded zero cancer rate during the five year median time period
Additionally, the short duration of the treatment along with
minimal side effects and the ability to maintain a healthy
lifestyle post-treatment renders a competitive edge to the
CyberKnife treatment. Moreover, the recently updated Model Policy
of the American Society for Radiation Oncology (ASTRO),
recommending SBRT for prostrate cancer treatment, is encouraging
news for Accuray.
The CyberKnife system is a non-invasive alternative to
traditional surgery and is the first and only commercially
available intelligent robotic radiosurgery system designed to
treat solid tumors anywhere in the body. The product faces stiff
Varian Medical System
) TrueBeam technology.
The company had also launched a new CyberKnife M6 System and a
TomoTherapy H Series, featuring the TomoHDA System at the ASTRO
meeting in 2012. We are impressed with Accuray's achievement of
improving product order momentum in the third quarter, on the
back of healthy product adoption of these new products.
However, a lot needs to be done to bring the company back on
track. We remain concerned over Accuray's declining top and
bottom line along with reduced full-year guidance. Management
needs to improve its higher-margin product revenues and
aggressively remediate its structural issues for new offerings to
fully contribute to total sales.
Moreover, Accuray remains susceptible to the weak U.S. and
European markets, reimbursement uncertainties and faces stiff
challenges from competitive product offerings.
Currently, the company carries a Zacks Rank #3 (Hold). Other
medical instrument companies such as
) with a Zacks Rank #2 (Buy) are worth considering.