Accuray Incorporated (ARAY), focused on solutions for radiation treatments, has entered into an agreement with Sweden-based C-RAD, the provider of innovative solutions for use in advanced radiation therapy, to enhance its Radixact System’s capabilities to treat breast cancer. Shares of the company declined 5.7% in extended trade on Monday.
The Accuray Radixact System is the next generation TomoTherapy platform, which delivers radiation therapy to treat breast cancer at almost every stage and has the option to be used with surgery or chemotherapy. Markedly, it is commonly used for the reduction of the risk of breast cancer recurrence and/or to provide relief from symptoms, including pain related to the advanced disease, the company said.
In the current era of radiation oncology where precision is very important, C-RAD’s Catalyst+ HD offers a precise solution to stereotactic radiation therapy, including breast cancers.
Therefore, per the terms of the agreement, C-RAD Catalyst+ HD and Radixact System will provide customers with a solution for deep inspiration breath hold (DIBH), a frequently-used technique for breast cancer treatments. The development work is likely to be initiated in 2021, while the first interface linking the catalyst technology and the Radixact System is expected to be accessible in mid-2022. (See Accuray stock charts on TipRanks)
Accuray CEO Joshua H. Levine said, “We are excited to enter into this partnership with C-RAD, a company like ours, that is dedicated to providing radiation therapy solutions that enable clinicians to improve the lives of as many of their patients as possible.”
“DIBH is a valuable approach for some patients with breast cancer undergoing radiation treatments. The combination of the Catalyst+ HD with the Radixact System is designed to make it easier for clinicians to leverage the advantages of our combined innovative solutions to effectively address the full range of breast cancer tumors they see in their daily practices,” Levine added.
Following the deal, BTIG analyst Marie Thibault reiterated a Buy rating on the stock with a price target of $9 (123.3% upside potential).
Thibault expects “this partnership to be one of a handful that helps ARAY iterate new radiation therapy solutions in various cancer types.”
Shares have rallied 52% over the past year, while Wall Street analysts are still bullish on the stock. The Strong Buy consensus rating boasts of 4 unanimous Buys. The average Accuray price target of $8.50 implies 110.9% upside potential to current levels.
What’s more, Accuray scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.