Accuray Incorporated
ARAY
recently announced favorable long-term follow-up data from a study of patients with trigeminal neuralgia (“TN”). The data indicates that majority of the patients continued to experience pain relief 10 years after receiving image-guided robotic radiosurgery treatments delivered with Accuray’s CyberKnife System.
It is worth mentioning that TN-related pain, which occurs most frequently in people over the age of 50, is more common in women than in men, and can be triggered by the lightest of touches to the face or even a gentle breeze.
The latest favorable data is expected to be a step forward for Accuray to strengthen its radiation therapy business on a global scale.
Significance of the Study Result
TN can impact patients over the course of their lives, thereby making long-term medical care a necessity. Treatment of TN starts with medication to block the pain signals sent to the brain, which gradually might become less effective. Resultantly, some patients may even experience unpleasant side effects over time. Alternative treatments, such as injections, radiofrequency, balloon compression, surgery or radiosurgery may be required for such patients.
Per a medical expert, if the TN-induced debilitating chronic pain is left untreated or is inadequately treated, it can be difficult to perform the most common daily activities like eating and even talking. The expert also stressed that significant studies like this are useful in demonstrating that with treatment options like CyberKnife radiosurgery, long-term pain control without a rigid head frame, surgery or medications can be provided. This is expected to improve patient outcome.
Per management, clinical data continues to highlight the long-lasting benefits provided by CyberKnife radiosurgery. The latest TN-related study emphasizes the importance of CyberKnife radiosurgery when precision and accuracy are essential, and also reflects the positive impact this non-invasive treatment option may have on patients suffering from this severe and challenging-to-treat medical condition.
Industry Prospects
Per a report by Research and Markets
, the global TN treatment market was valued at $46.53 million in 2016 and is anticipated to reach $99.17 million by 2025 at a CAGR of 7.6%. Factors like growing prevalence of chronic pain disorders and rising public awareness about the condition are likely to drive the market.
Given the market potential, the latest favorable data are expected to provide a significant boost to Accuray’s business globally.
Notable Developments
Last month, Accuray announced that its CyberKnife S7 System has been used by the CARTI medical care team in Little Rock, AR, to treat the first patients in the state.
In February, the company announced that the National Institute for Health and Care Excellence in the U.K. has endorsed radiosurgery for TN, thereby strengthening the evidence for the company to market its CyberKnife Treatment Delivery System for this indication in the country.
The same month, Accuray announced that Queensland, Australia-based Royal Brisbane and Women’s Hospital has selected two Radixact Systems with ClearRT helical fan-beam kVCT imaging and Synchrony artificial intelligence-driven four-dimensional dynamic delivery technology to expand access to potentially life-saving radiotherapy treatments to more patients.
Price Performance
Shares of the company have lost 32.1% in the past year against the
industry
’s 2.9% growth and the S&P 500’s 11.9% rise.
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Zacks Rank & Key Picks
Currently, Accuray carries a Zacks Rank #3 (Hold).
A few stocks from the broader medical space that investors can consider are
AMN Healthcare Services, Inc.
AMN
,
IDEXX Laboratories, Inc.
IDXX
and
Henry Schein, Inc.
HSIC
.
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 20%. It currently sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has gained 40.6% against the
industry
’s 53.9% fall over the past year.
IDEXX, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 13%. IDXX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 18.6%.
IDEXX has gained 12.7% compared with the industry’s 2.9% growth over the past year.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%. It currently has a Zacks Rank #2.
Henry Schein has gained 29.5% compared with the
industry
’s 9.7% growth over the past year.
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