HomeMost PopularInvestingAccuray Secures Approval for Tomo C Radiation System in China

Accuray Secures Approval for Tomo C Radiation System in China

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Accuray Incorporated (ARAY) has announced that its joint venture Tomo C radiation therapy system has received approval from the Chinese National Medical Products Administration (NMPA). This approval allows the system to be marketed and used in China for Type B market.

Meeting the Demand for Radiation Therapy in China

Accuray’s Tomo C radiation therapy system is expected to address the significant demand for radiation therapy in China. The number of patients requiring radiation far surpasses the current capacity in the country, which is below the level recommended by the World Health Organization. With its fully-integrated treatment planning and advanced beam-shaping technology, the Tomo C system offers precise and personalized treatment options for a wide range of cancer types, while minimizing damage to healthy tissues.

Market Potential and Outlook

The radiation therapy market in the Asia Pacific region, including China, is projected to reach $1.90 billion by 2028, driven by factors such as an increasing elderly population, improved healthcare infrastructure, rising per capita income, and a growing number of cancer cases. Accuray’s recent approval for the Tomo C system positions the company well to tap into this market potential and expand its business in China.

Recent Developments

In addition to the approval in China, Accuray has made other significant advancements in its radiation therapy platform. The company has an online adaptive therapy option, Cenos, under review with the FDA, which will enhance the capabilities of its Radixact system. Accuray also recently opened the Accuray Center for Education, a global training facility located in its corporate headquarters in Madison, WI. These developments reflect Accuray’s commitment to innovation and growth in the radiation therapy market.

Industry Comparison: Stocks to Consider

While Accuray currently carries a Zacks Rank #5 (Strong Sell), there are other stocks in the medical space that show potential for growth. Align Technology (ALGN), McKesson Corporation (MCK), and Medpace Holdings (MEDP) are better-ranked stocks in the broader medical sector. Align Technology, with its estimated long-term growth rate of 17.5%, has shown consistent earnings performance. McKesson Corporation has an estimated long-term growth rate of 10.7% and has outperformed earnings estimates in three of the past four quarters. Medpace Holdings, with an estimated growth rate of 16.2%, has surpassed earnings estimates in each of the trailing four quarters. These stocks have demonstrated strong performance and may be worth considering for investors.

Conclusion

Accuray’s approval for the Tomo C radiation therapy system in China opens up significant opportunities for the company in the growing radiation therapy market. With its advanced features and personalized treatment options, the Tomo C system is well-positioned to address the increasing demand for precise and effective cancer treatments in China. However, as with any investment, careful consideration of market conditions and individual risk tolerance is advised.

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