Associated Press Accuray rises following analyst upgrade BY MARLEY SEAMAN 07.29.08, 1:17 PM ET
NEW YORK - Shares of radiosurgery device maker Accuray Inc. rose Tuesday after a Soleil Securities analyst upgraded the stock, saying it will trade higher as Accuray provides new details and clinical data for its CyberKnife system.
Junaid Husain said anticipation about Accuray (nasdaq: ARAY - news - people )'s new products will lift the stock before the annual American Society of Therapeutic Radiology and Oncology meeting. ASTRO will hold its annual meeting in Boston from Sept. 21 to 25. Husain raised his rating to "Buy" from "Hold," increasing his price target to $11 per share from $9.
Shares of Accuray rose 59 cents, or 7.6 percent, to $8.33 in afternoon trading. They last traded at $11 on Feb. 28.
Accuray's CyberKnife radiosurgery system is designed to kill tumors with high doses of radiation and without surgery, making some treatments into outpatient procedures.
In a telephone interview, Accuray Chief Executive Euan Thomson said the company uses a different business model from other medical equipment makers: at least once a year, the company offers upgrade packages for its CyberKnife system, which can siginficantly increase its capabilities.
Thomson declined to detail any new products or upgrades that might be discussed at ASTRO, but he said the regular upgrades generate excitement surrounding trade shows.
Husain also said he expects positive results from studies of the CyberKnife as a treatment for prostate cancer.
Thomson said the company has been collecting data on patients treated with CyberKnife for three to five years. While the data has not yet been peer-reviewed and may not be published for as much as a year, he said the early results look "extremely promising."
"It looks like it could significantly change people's perspective on what type of treatment they should have for prostate cancer," he said.
Thomson said Sunnyvale, Calif.-based Accuray is also collecting data on CyberKnife's effectiveness against tumors in the brain, spine, lungs, liver, pancreas, and head and neck.
Accuray also has a partnership with CyberHeart, a startup that is testing radiosurgical treatments for atrial fibrillation, or abnormal heart rhythms. CyberHeart believes atrial fibrillation can be treated by making controlled lesions in the heart.
Husain said testing should begin in November. Thomson said Accuray has agreed to be CyberHeart's sole supplier if the treatment is effective, although he said that business is at least two or three years away.
Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed.
News 
Market Data 
Discover 
