Yahoo Finance Accuray (ARAY), TrueNorth Unite to Aid Radiation Departments
Accuray Incorporated ARAY recently announced an agreement with TrueNorth Medical Physics LLC, a private company offering radiation oncology consultancy to radiation oncology departments external help aimed to improve the capabilities of the departments.
Under the terms of the agreement, TrueNorth is likely to offer services that are complementary and supplementary to the services provided by Accuray, acting as an extension of the hospital team. This will enable hospitals to ensure that it has the staffing necessary to meet treatment goals for patients, whether on-site, remotely, or hybrid.
More on the News
TrueNorth, which has a significant number of clinical years of experience in the field of radiation medicine, is likely to use its extensive body of knowledge to support the commissioning, physics, and dosimetry of the Accuray TomoTherapy, Radixact, and CyberKnife platforms.
TrueNorth provides customized services that are suited to a hospital's unique needs and serve to supplement its staff. The organization is prepared to handle these demands, which range from offering extra support when the site hires new employees or when only part-time support is needed to share knowledge that helps new technologies and methods to be adopted by staff.
With the inclusion of the TrueNorth offerings, Accuray has demonstrated its commitment to providing a wider range of solutions that will allow medical professionals to use the company's technology from the beginning and throughout their careers.
More on Accuray’s Strategic Partnerships
Accuray has been entering into a slew of partnerships over the past few months. During the third quarter of fiscal 2024, the company announced a collaboration agreement with Oncopole Claudius Regaud (IUCT-Oncopole) in France and Airbus SAS to develop an artificial intelligence-driven solution for predicting radiotherapy system performance.
Accuray had also entered into a commercial collaboration agreement with GE Healthcare to complement their precision oncology solutions. The tie-up has driven an increase in Accuray’s near-term fiscal 2024 sales funnel and aided the total short-term and long-term opportunity pipeline. The partnership had also positively influenced the win rate in several of the key fiscal fourth-quarter wins by strongly positioning Accuray within the C-Suite of health systems.
Industry Prospects
Per a report by Predence Research, with a growth rate of 8%, the global radiation therapy market, which was valued at $7.3 billion in 2022, is expected to reach more than $14.9 billion by 2032.
With improved efficiency and efficacy and higher market demands from a growing customer base, developed technologies in radiation therapy contribute to growth of the radiation therapy market.
Notable Developments
In June, Accuray announced that the Chinese National Medical Products Administration approved the registration dossier of the Accuray Precision Treatment Planning System. The CNNC-Accuray joint venture Tomo C radiation therapy system and the Accuray Precision TPS are now compatible. These are likely to provide medical teams with a new way to administer highly accurate and precise radiation treatments, as well as expand access to care for more cancer patients in China.
In March, the company announced that new data presented at the 2024 Radiosurgery Society Meeting in Chicago supports the use of the CyberKnife System in the treatment of high-risk and recurrent prostate cancer.
Price Performance
For the past six months, ARAY’s shares have plunged 34.5% against the industry’s rise of 5.8%. The S&P 500 increased 15.2% in the same time frame.
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Zacks Rank & Stocks to Consider
ARAY carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space that have announced quarterly results are DaVita DVA, Ecolab ECL and Boston Scientific Corporation BSX.
DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 13.6%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 29.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita’s shares have gained 44% compared with the industry’s 20.4% rise in the past year.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 1.7%.
Ecolab’s shares have rallied 33.8% against the industry’s 9.3% decline in the past year.
Boston Scientific reported first-quarter 2024 adjusted earnings per share of 56 cents, which beat the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 12.5%. BSX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 7.5%.
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