Accuray Incorporated ARAY recently revealed findings from an international multicenter analysis, showing that the CyberKnife System delivers effective and time-efficient treatment for brainstem metastases (“BSM”). The study highlights stereotactic radiosurgery (“SRS”) and fractionated stereotactic radiotherapy (“FSRT”) as achievers of long-term local control with a strong safety profile, even in sensitive brain regions.
The brainstem is an integral part of the central nervous system and metastatic spread to this part of the brain is a potentially life-threatening situation. Since surgical resection is rarely an option, SRS and FSRT are both effective and safe treatment alternatives when thoroughly planned and executed.
SRS administers a single high-dose treatment, while FSRT breaks the total dose into smaller portions spread over several days. Both approaches enable medical teams to deliver highly precise and targeted radiation, typically to small, specific areas in the brain. In the analysis, 136 patients, who were treated in one to five sessions, were reviewed with 69.4% receiving their treatment in just one session.
Likely Trend of ARAY Stock Following the News
Following the announcement, shares of the company moved south 6.3% to $1.79 on yesterday’s closing. In the past six months, ARAY’s shares have lost 36.8% against the industry’s growth of 5.6%. The S&P 500 has gained 27.7% in the same time frame.
However, positive study data for CyberKnife in treating BSM is a clear win for ARAY. It not only strengthens the product’s value proposition but also aligns with broader trends in precision oncology and non-invasive therapies. Investors tend to reward companies that successfully address critical healthcare challenges. So this news could serve as a meaningful catalyst for the price growth of ARAY stock.
Meanwhile, ARAY currently has a market capitalization of $192.1 million. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $468.6 million, which indicates 4.9% growth from fiscal 2024 reported number.
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More on the Study Data for ARAY’s CyberKnifeSystem
The study aimed to provide more evidence supporting the use of radiosurgery for treating BSM. Researchers conducted a retrospective study comparing the safety and effectiveness of single-session (SRS) and multi-session (FSRT) radiotherapy treatments with the CyberKnife System. Data from nine institutions, covering 136 patients with 144 BSM treated between 2005 and 2022, were analyzed. Of these, 100 BSM were treated with SRS, while 44 received FSRT.
The study found local BSM control rates of 82.9% at one year, 71.4% at two years and 61.2% at three years, demonstrating long-term control even for tumors in sensitive areas. Both SRS and FSRT were well-tolerated, with few treatment-related side effects reported. These findings highlight the safety and effectiveness of these advanced treatments in managing BSM.
CyberKnife System expands treatment options for patients with brain tumors and neurological conditions. It offers highly precise and targeted radiation therapy, which can treat delicate areas in the brain without the need for a metal frame. This allows it to be suitable for a wider range of patients, including those with recurrent tumors or young patients who may not be able to undergo traditional treatments. Additionally, it can be used at different stages of treatment, from first-line therapy to palliative care, offering more flexible treatment options.
Likely Benefits of the Positive Data for ARAY
The positive study data showcasing CyberKnife System’s effectiveness and safety in treating BSM positions ARAY as a leader in precision radiation therapy. By addressing a critical need in treating delicate brain areas with minimal side effects, the company reinforces its reputation for innovation and reliability in the healthcare market.
This could drive increased adoption of the CyberKnife System among healthcare providers, particularly as the data highlights its capability to deliver effective treatment with sub-millimeter precision and fewer patient burdens, such as eliminating the need for a fixed head frame. This appeal is likely to expand the company’s customer base, translating into higher revenues and market share.
Additionally, the study's publication in a respected journal like the International Journal of Cancer enhances the credibility of the CyberKnife System. This positive attention may encourage more oncologists and neurologists to consider CyberKnife for first-line, adjuvant or palliative care. The flexibility of its application across various treatment stages further broadens the therapy’s market potential. As awareness grows, ARAY could see increased orders from both new and existing clients, strengthening its financial performance and paving the way for long-term growth.
Favorable Industry Prospects for ARAY
Per a report by Grand View Research, the global brain tumor diagnosis and therapeutics market size was valued at $3.11 billion in 2023 and is expected to grow at a CAGR of 7.1% from 2024 to 2030.
The growing launches of brain tumor therapeutics products and the rise in cancer awareness for brain tumor medications drive the market over the forecast period.
ARAY’s Zacks Rank & Other Stocks to Consider
ARAY carries a Zacks Rank #2 (Buy) at present.
Some other top-ranked stocks in the broader medical space are Masimo MASI, Abbott ABT and AxoGen AXGN.
Masimo, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 11.8% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.
MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 49.4% compared with the industry’s 6.7% growth year to date.
Abbott, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 10% for 2025. It delivered a trailing four-quarter average earnings surprise of 1.64%.
ABT’s shares have risen 2.3% year to date compared with the industry’s 11.5% growth.
AxoGen, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 252% for 2025. It delivered a trailing four-quarter average earnings surprise of 91.11%.
AXGN’s shares have risen 111% year to date compared with the industry’s 6.7% growth.
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