ViewRay Sells MRIdian Radiation System to American Hospital in Istanbul

ViewRay (VRAY) has secured a deal to sell its MRIdian MRI-guided radiation therapy system to the American Hospital in Istanbul. The hospital is acquiring the system to strengthen its radiotherapy and stereotactic body radiation therapy programs.

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The hospital currently provides customizable patient diagnosis and treatments. The addition of the radiotherapy system from ViewRay will allow the hospital to offer tailored radiotherapy sessions to address anatomical changes in patients.

Following the purchase, the American Hospital will offer MRI-guided radiation therapy sessions to patients seeking customized lung, liver, and prostate cancer treatment. (See ViewRay stock analysis on TipRanks)

“MRIdian will allow us to adapt and customize doses with tighter margins and deliver ablative treatments to treat tumors in difficult sites while minimizing associated toxicities,” said Professor Uğur Selek, M.D., head of the radiation oncology department at American Hospital.

MRIdian is designed to offer doctors anatomic visualization, which allows them to define tight treatment margins and deliver ablative radiation directly to the tumor site. With MRIdian, the radiation beam is automatically gated if the target moves outside the user-defined margin, ensuring that healthy tissue is spared.

To date, more than 12,500 patients have been treated by the ViewRay radiotherapy system. There are 42 such systems installed in various hospitals worldwide, aiding in the treatment of multiple tumors.

BTIG analyst Marie Thibault has reiterated a Buy rating on the stock, following an impressive first-quarter in which revenues topped estimates.

“VRAY continues to emphasize the growing body of clinical work on MRIdian, its efforts on future system capabilities, and ensuring customers are experiencing clinical and economic benefits with MRIdian. The company is managing these results while reducing cash usage as well ($28M this quarter vs $36M in Q1 of 2020),” wrote the analyst in a research note to investors.

The analyst has a $7 price target on the stock, implying 19.05% upside potential to current levels.

Consensus among analysts on Wall Street is a Strong Buy based on 3 Buy ratings. The average analyst price target of $6.67 implies 13.44% upside potential to current levels.

VRAY scores 5 out of 10 on TipRanks’ Smart Score rating system, implying it is likely to perform in line with market averages.