Leading radiosurgery systems maker
) has announced that it has inked a definitive agreement to acquire
privately held Morphormics, Inc., founded by University of North
Carolina. Per the agreement, Accuray will pay approximately $5.7
million for the buyout.
The agreement reflects Accuray's focus on its growth strategy to
maintain product leadership via technological innovation. The
latest acquisition will enable the company to offer more effective
and efficient treatment by improving standards of care.
Morphormics is well known for its research in autosegmentation
of medical images. It develops software systems for medical imaging
that can identify and extract anatomical structures from medical
images. According to Morphormics, the agreement will enhance
patient access to its technology. The acquisition underlines the
superiority of its technology in delivery of efficient and accurate
image-guided medical treatment.
The acquisition of Morphormics will enable Accuray to enhance
the autocontouring capabilities for its CyberKnife Robotic
Radiosurgery System and TomoTherapy System. Accuray first began
licensing Morphormics' autocontouring technology in 2008. The
technology improves cancer treatment planning by reducing radiation
exposure to the surrounding critical structures.
Management at Accuray asserted the ability of Morphormics
technology to improve clinical efficiency as well as patient
outcomes, especially in the treatment of prostate cancer.
Morphormics acquisition will extend Accuray's intellectual property
implying a reduction in licensing expenses. The company also
expects a strengthened engineering team which will include experts
from University of North Carolina at Chapel Hill.
This newest acquisition is expected to yield positive results.
Accuray earlier achieved integration milestones with the
acquisition of TomoTherapy in June 2011. The combined entity is now
offering state-of-the-art therapies, ranging from high-precision
radiosurgery to image-guided intensity-modulated radiation therapy
to treat cancer and other critical diseases.
However, Accuray remains susceptible to reimbursement
uncertainties and faces stiff challenges from competitive product
). We currently have a long-term Neutral recommendation on Accuray.
The stock retains a Zacks #2 Rank, which translates into a
short-term Buy rating.
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