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Accuray's Radixact Gets AERB Nod in India, Prospects Solid

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Accuray Incorporated (ARAY - Free Report) recently received the Atomic Energy Regulatory Board (AERB) Type Approval for its flagship Radixact X9 System in India. Notably, the approval establishes safety standards of the system, besides enabling hospitals throughout India to import the next-generation TomoTherapy platform.

The Radixact System is fully integrated with the Accuray Precision Treatment Planning System (TPS) and iDMS Data Management System.

Notably, Apollo Hospitals in Chennai and New Delhi had acquired two Radixact Systems of the company in March. (Read More: Accuray Radixact Picked by India's Apollo for Cancer Treatment)

Accuray’s Exposure to AI and Medical Mechatronics

The latest regulatory approval signifies continued momentum in commercialization of the coveted Radixact System. This strengthens Accuray’s foothold in the use of Artificial Intelligence (AI) and Mechatronics, which are currently shaping the MedTech fraternity. Per Cision, the global medical device market is expected to reach an estimated $409.5 billion by 2023, at a CAGR of 4.5% from 2018.

Mechatronics, a high-end technology incorporating electronics, machine learning and mechanical engineering, has been in vogue of late. With growing prominence of AI and robotic companies, organizations with significant exposure to Mechatronics have been raking in huge profits.

Consequently, Accuray’s latest achievement is likely to prove beneficial for the company over the long haul.

Radixact Drives Accuray

Accuray recently announced the launch of its precision treatment planning system. The system leverages on the company’s flagship Radixact and CyberKnife system platforms. The company also plans to build on this technology with Precision 2.0 upgrade by fiscal 2018.

In fact, in the third quarter of fiscal 2018, Accuray witnessed $74.9 million of gross orders, with a substantial contribution from Radixact system. Moreover, Radixact systems represented over 80% of all TomoTherapy order volume.

Price Performance

In the past six months, Accuray’s shares have rallied 3.5%, against the industry’s decline of 4.2%.

Zacks Rank & Key Picks

Accuray currently carries a Zacks Rank #5 (Strong Sell).

A few better-ranked stocks in the MedTech space with solid exposure to Medical Mechatronics are Abiomed , Varian Medical Systems and Stryker Corporation (SYK - Free Report) .

Abiomed’s flagship product Impella is the world's smallest heart pump offering hemodynamic support to the heart. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Varian Medical’s coveted Halcyon and HyperArc platforms deserve a mention. The stock carries a Zacks Rank #2 (Buy).

Stryker’s FDA-approved Tritanium TL Curved Posterior Lumbar Cage is a 3D-printed interbody fusion cage. The stock carries a Zacks Rank #2.

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