MADISON, Wis. - Accuray (NASDAQ:ARAY) Incorporated (NASDAQ: ARAY), a radiation therapy equipment company, has formed a partnership with TrueNorth Medical Physics LLC to enhance support for radiation oncology departments. Announced today, this collaboration aims to extend the capabilities of oncology teams through a combination of on-site, remote, and hybrid third-party services.
TrueNorth Medical Physics will offer physics, dosimetry, and commissioning support for Accuray's TomoTherapy®, Radixact®, and CyberKnife® Systems. These services are designed to complement those already provided by Accuray, helping to ensure adequate staffing for achieving patient treatment goals.
The partnership addresses the need for additional support during recruitment processes or when part-time assistance is required, as well as offering expertise in new technology and techniques.
Matt Daniels, Ph.D., DABR, a Managing Partner at TrueNorth, emphasized the company's extensive experience with Accuray platforms and its commitment to providing unbiased support to improve radiation therapy practices.
Suzanne Winter, president and CEO of Accuray, highlighted the partnership as a reflection of Accuray's dedication to innovation and support for customers' patient-focused treatment objectives. She acknowledged the challenges healthcare providers face, such as labor shortages and operational hurdles, which can impact the ability to maintain clinical standards. The agreement with TrueNorth is intended to provide care teams with additional resources to advance cancer treatment within their facilities.
Accuray, headquartered in Madison, Wisconsin, focuses on continuous innovation in radiation therapy for oncology and neuro-radiosurgery. The company's global presence includes facilities worldwide.
The information in this article is based on a press release statement.
In other recent news, Accuray Incorporated has received approval from the Chinese National Medical Products Administration for its Accuray Precision Treatment Planning System. The system, developed through a joint venture with CNNC, is designed to deliver precise radiotherapy for cancer patients in China.
This approval allows the company to begin distributing the Tomo C System in China, a region where approximately 25% of the world's new cancer cases were diagnosed in 2020.
Lake Street Capital Markets has adjusted its price target for Accuray, reducing it to $6.00 from the previous $13.00, while maintaining a Buy rating. Despite the cut, the firm projects Accuray's fiscal year 2025 revenue to be $450.2 million, a 4% year-over-year increase.
Despite facing challenges in Q3 due to decreased capital spending on radiotherapy equipment in U.S. hospitals and approval delays for the Tomo C precision treatment planning system in China, Accuray remains optimistic about its long-term strategy.
The company's outlook includes a recovery in revenues and adjusted EBITDA in the upcoming quarters. Accuray plans to leverage its service contract revenue, commercial partnerships, and innovation pipeline to drive growth. Regulatory approval for precision treatment planning in China and the introduction of the product Helix in India are among the long-term opportunities being pursued.
InvestingPro Insights
As Accuray Incorporated (NASDAQ: ARAY) forges a strategic partnership with TrueNorth Medical Physics to bolster support in radiation oncology departments, it’s crucial to consider the company's financial health and market position. With a market capitalization of $172.68 million, Accuray is navigating a challenging landscape marked by a recent history of financial metrics that could influence its ability to innovate and support its customers effectively.
InvestingPro data indicates Accuray's revenue in the last twelve months as of Q3 2024 stood at $430.55 million, with a noticeable decline of 2.0%. This contraction is more pronounced on a quarterly basis, with a decrease of 14.34% in revenue growth compared to the previous quarter. The gross profit margin remains at 33.06%, reflecting the company's ability to control cost of goods sold relative to sales, which is crucial for its financial sustainability. Nevertheless, the company's operating income margin at -0.97% and an EBITDA growth plummeting by 86.18% highlight operational challenges that may impact profitability.
InvestingPro Tips shed light on additional concerns for investors: Accuray operates with a significant debt burden and is trading at a high EBITDA valuation multiple. Analysts are not optimistic about the company's profitability in the near term, expecting a drop in net income this year and projecting that the company will not be profitable within the same timeframe. Furthermore, Accuray does not pay a dividend, which could be a deciding factor for income-focused shareholders.
For readers seeking a deeper dive into Accuray's financials and future outlook, InvestingPro offers a comprehensive array of tips—there are 5 additional InvestingPro Tips available for ARAY, providing valuable insights for investors. To access these tips and more detailed analytics, visit https://www.investing.com/pro/ARAY and consider using the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.