Accuray Incorporated ARAY is gaining prominence in the MedTech space, courtesy of solid demand for Radixact & CyberKnife platforms. Moreover, the company has been fortifying its foothold worldwide.
In 2018, the company received regulatory approval from India to sell its flagship Radixact X9 system. Management is optimistic about this development as it will expand Accuray’s precision treatment solutions in emerging markets. These apart, the company has a strong presence in India’s leading hospitals.
However, Accuray faces cutthroat competition in the radiation-oncology space. In a year’s time, this Zacks Rank #3 (Hold) stock has gained 3.1% compared with the industry’s 11.1% growth.
So here we take a quick look at Accuray’s major headwinds and discuss the factors that ensure near-term recovery.
Cutthroat Competition in the Niche Markets
Accuray is exposed to significant competition in the radiation oncology market, which is characterized by rapid technological changes.
The company competes head-to-head with Varian Medical, Elekta, ViewRay and BrainLAB AG in this market. While, the CyberKnife System faces challenges from Varian’s Trilogy system, TomoTherapy systems are challenged by Varian’s RapidArc technology and the TrueBeam systems.
A series of software upgrades has been acting as a key catalyst for Accuray. These upgrades were primarily focused on improvised imaging, faster planning capabilities as well as system connectivity.
Further, software enhancements involved improvisation of CyberKnife treatment planning efficiency. In this regard, it is imperative to mention that Accuray had introduced CTrue iterative reconstruction — an enhanced CT imaging capability for Radixact.
In fiscal 2018, Accuray launched an imaging software for Radixact. Per management, this software offers significant improvement in soft tissue resolution with up to 50% lesser image noise than the previous version. Another important development program for Radixact System is the launch of intra-fraction motion tracking and correction capability.
It is encouraging to note that in second-quarter fiscal 2019, Accuray received the FDA approval for its 510(k)-application motion synchronization on the Radixact treatment system. Notably, motion synchronization has been a unique functional feature of the CyberKnife platform. Meanwhile, the kVCT imaging on Radixact is under development.
Which Way Are Estimates Trending?
The Zacks Consensus Estimate for third-quarter fiscal 2019 is pegged at a loss of 4 cents. The same for revenues stands at $104 million, mirroring a 4.2% improvement year over year.
For fiscal 2019, the Zacks Consensus Estimate is pinned at a loss of 16 cents. The same for revenues is pegged at $420.4 million, reflecting a 3.8% improvement year over year.
Accuray Incorporated Price and Consensus
Accuray Incorporated Price and Consensus | Accuray Incorporated Quote
A few better-ranked stocks in the broader medical space are Surmodics, Inc SRDX, Abbott Laboratories ABT and Cardiovascular Systems, Inc. CSII.
Surmodics has a long-term expected earnings growth rate of 10%. The stock sports a Zacks Rank #1 (Strong Buy). stocks here.
凭借对 Radixact 和 CyberKnife 平台的强劲需求， Accuray Incorporated ARAY 在 MedTech 领域的地位日益突出。此外，该公司一直在巩固其全球地位。
2018年，公司获得印度监管机构批准销售其旗舰 Radixact X9系统。管理层对这一发展持乐观态度，因为它将扩大 Accury 在新兴市场的精准治疗解决方案。除此之外，该公司在印度主要医院拥有强大的影响力。
然而， Accuray 在放射肿瘤学领域面临着激烈的竞争。在一年的时间里， Zacks 排名第三（控股）的股票上涨了3.1%，而该行业的增长为11.1%。
因此，我们很快就看到了 Accuray 的主要逆风，并讨论了确保近期复苏的因素。
公司与 Varian Medical , Elekta , ViewRay 和 BrainLAB AG 在该市场上展开正面竞争。然而， CyberKnife 系统面临 Varian 三部曲系统的挑战， TomoTherapy 系统受到 Varian 的快速 Arc 技术和 TrueBam 系统的挑战。
一系列软件升级已经成为 Accury 的关键催化剂。这些升级主要集中在即兴成像、更快的规划能力以及系统连接。
此外，软件的改进还包括提高 CyberKnife 治疗规划效率。在这方面，必须指出的是， Accurray 已经引入 CTrue 迭代重建——增强了 Radixact 的 CT 成像能力。
2018财年， Accury 为 Radixact 推出了成像软件。根据管理，该软件提供了显着改善软组织分辨率高达50%的图像噪声比以前的版本。Radixact 系统的另一个重要开发程序是启动分数内运动跟踪和校正能力。
令人欣慰的是， Accurray 在2019年第二季度收到了 FDA 对其在 Radixact 治疗系统上510( k )-应用程序同步的批准。值得注意的是，运动同步是 CyberKnife 平台独特的功能特性。同时，在 Radixact 上的 kVCT 成像也在开发中。
对于2019年的财政年度， Zacks 共识估计值的损失为16美分。收入也是4.204亿美元，同比增长3.8%。
Accury Incorporated Price and Consensus | Accury Incorporated quote
在更广泛的医疗领域排名较好的股票有 Surmodics , Inc SRDX ,雅培（Abbott） Laboratories ABT 和 Cardiovascular Systems , Inc . CSII 。
Surmodics 的长期预期收益增长率为10%。股票运动 Zacks 排名第一（强劲购买）。这里的股票。