Accuray
(Nasdaq: ARAY)
announced today that it received approval in China for its Precision treatment planning system (TPS).
Precision TPS works with the CNNC-Accuray joint venture Tomo C radiation therapy system. Combined, they provide a new option for delivering precise and accurate radiotherapy treatments. In a news release, the company said the clearance expands access to care for cancer patients in China.
“We couldn’t be more pleased about the approval of the Accuray Precision treatment planning system and the potential it represents, in combination with the Tomo C System, for cancer patients in China, a country which accounted for approximately 25 percent of new cancer cases diagnosed worldwide in 2020,” said Suzanne Winter, president and CEO of Accuray. “With this approval our China joint venture can begin shipping the Tomo C System to their end customers, an important step forward in helping to address an unmet need for precision radiation therapy.”
Tomo C, a domestic-made radiation therapy delivery device, joins Accuray’s other portfolio offerings utilizing the Precision TPS in China. Precision TPS helps facilitate the creation and adaptation of precise treatment plans in less time. It allows clinicians to routinely incorporate modifications to treatment planning, accounting for changes in tumor size, shape and location. They can also make subtle changes in the location of organs and other healthy tissue.
Accuray developed Tomo C with helical imaging and radiation delivery, fully integrated treatment planning and centralized data management. It uses patented beam-shaping technology in therapy delivery for greater control of the radiation. This helps the dose conform precisely to the tumor, minimizing dose to healthy tissue. Uses include therapy for breast, prostate, lung, and head and neck cancers, in addition to complex treatments like total marrow irradiation.
The analysts’ view on the news from Accuray
BTIG analyst Marie Thibault reiterated her “Buy” rating for Accuray after the announcement.
“This is a major clearing event for ARAY, as the regulatory approval of the TPS will allow ARAY’s JV partner to ship product to customers and enable ARAY to recognize the full margin and profit benefits of selling the system,” Thibault said. “ARAY secured regulatory approval for the Tomo C system in China last fall, which allowed them to market the system to the Type B value segment ahead of the TPS approval.”
