Accuray Incorporated (ARAY Quick QuoteARAY - Free Report) recently announced that Japan-based Gifu Prefectural General Medical Center became the first hospital in the country to treat patients with surface-guided radiation therapy (SGRT) using its Radixact Radiation Delivery System and VitalHold (ARAY’s joint solution in partnership with C-Rad) package. The technology is expected to play a crucial role in the hospital's plan to expand patient access to high-precision radiation therapy treatments.

Per Accuray, high-resolution cameras continuously monitor a patient's breathing and position in real-time to create a three-dimensional map of a patient's skin during treatment with SGRT. The image enables medical care teams to easily visualize the difference between the current body position and the target position, helping to ensure the patient is appropriately positioned when radiation is delivered.

Following the release announcement on Sept. 10, ARAY’s shares have gained 7.9% till the last trading.

The latest product adoption is a significant stepping stone for Accuray, which is expected to significantly strengthen its TomoTherapy platform on a global scale.

Significance of the Latest Adoption of ARAY’s Technology

Per Accuray, SGRT has been designed to aid medical care teams to effectively position the patient and monitor the accuracy of that positioning throughout treatment. The ability to monitor is also likely to enable the deep inspiration breath hold technique, which is often used in left breast cancer treatment to help protect the heart from radiation.

Accuray estimates that approximately 50% of all cancer patients need radiotherapy at least once to cure their cancer, increase the chance of cure or relieve symptoms caused by cancer. The company believes that the Gifu Prefectural General Medical Center team is focused on driving a fundamental change in cancer management.

Per Accuray’s management, the customer interest in Japan for VitalHold since receiving the Shonin approval at the end of 2023 raises optimism. Management believes that the adoption will likely accelerate the team's efforts to improve access, outcomes and the patient experience.

Gifu Prefectural General Medical Center’s management believes that by using VitalHold, the center will be able to set up patients faster than initially anticipated and monitor the patient's position throughout the radiation treatment. With the use of hypofractionation (the delivery of increased dose per session), monitoring the patient's position during irradiation has become extremely important. These factors are expected to enable Gifu Prefectural General Medical Center to deliver highly-accurate treatments and medical services to patients.

Industry Prospects for Accuray

Per a report by Precedence Research, the global radiation therapy market was estimated at $7.47 billion in 2023 and is anticipated to reach $16.30 billion by 2033 at a CAGR of approximately 8.6%. Factors like the increased prevalence of cancer, the growing adoption of radiotherapy in cancer treatment and technological advancements are likely to drive the market.

Given the market potential, the latest product adoption is expected to provide a significant boost to Accuray’s business globally.

Notable Developments by ARAY

Last month, Accuray received the CE Mark for its Helix, a CT-guided helical radiotherapy system designed to provide high performance and high throughput.

The same month, Accuray reported its fourth-quarter fiscal 2024 results, wherein it saw a solid uptick in its net revenues and gross orders. During the quarter, the company achieved record quarterly system shipments with a 24% increase in systems shipped year over year, resulting in the highest revenue quarter in its history.

Also, in August, Accuray, along with Halifax Health, announced that the Charles L. and Miki N. Grant Cancer Center for Hope medical team is the first in the United States to treat cancer patients using the company’s Radixact System with VitalHold technology.

Accuray’s Share Price Performance

Shares of the company have lost 19.2% in the past year against the industry’s 17.6% rise and the S&P 500's 25.7% growth.

Image Source: Zacks Investment Research

ARAY’s Zacks Rank & Key Picks

Currently, Accuray carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA Quick QuoteDVA - Free Report) , Baxter International Inc. (BAX Quick QuoteBAX - Free Report) and Boston Scientific Corporation (BSX Quick QuoteBSX - Free Report) .

DaVita, carrying a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 17.5%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 24.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

DaVita’s shares have gained 65% compared with the industry’s 29.5% rise in the past year.

Baxter, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 10%. BAX’s earnings surpassed estimates in each of the trailing four quarters, with the average being 3.7%.

Baxter has gained 2.9% compared with the industry’s 19.5% rise in the past year.

Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.6%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.2%.

Boston Scientific’s shares have rallied 57.7% compared with the industry’s 19.5% rise in the past year.