Accuray (ARAY) is the developer of the CyberKnife® System, a non-invasive robotic radiosurgery system with superior accuracy for the treatment of tumors. Founded in 1990 by John R. Adler, M.D., professor of neurosurgery and radiation oncology at Stanford University Medical Center, the Company received FDA clearance for the treatment of head, neck and upper spine tumors in 1999. In 2001, Accuray also received FDA clearance to introduce enhancements to the CyberKnife System for the treatment of tumors anywhere in the body. Other upgrades introduced more recently facilitate clinicians’ ability to treat tumors with the highest levels of accuracy.

To date, more than 70,000 patients around the world have been treated with Cyberknife, and the Company is slowly increasing the number of peer-reviewed papers to supports its clinical practice.

In 2007 Accuray common stock began trading on The NASDAQ Stock Market under the symbol ARAY. The IPO was set at $18, and the stock has come down in price quite a lot since then - a combination of bad management handling of the definition of backlog, that created high expectations coupled with slower than expected sales, and accounting rules that probably made it even more difficult for investors to follow the underlining fundamentals (click on the chart to enlarge).

While the adoption of a revolutionary technology is always a risky process, especially in the medical sector, we believe that Accuray stock might become a good turn around story for the future. Several clinical studies are being done right now and their results, if positive, could boost the adoption of the Cyberknife.

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Interesting sources:

Accuray web site, IR.

Updated on December 2009