Accuray (ARAY) Jefferies Global Healthcare Conference summary

Competitive positioning and product innovation

• Focus on precision in radiation therapy, targeting the premium segment with unique platforms like CyberKnife and Radixact, both offering advanced treatment capabilities.

• CyberKnife is the only robotic delivery system, popular for SBRT and SRS, while Radixact combines CT and linear accelerator for versatile treatments.

• Expansion into value segments with Tomo C in China and Helix for other emerging markets aims to broaden market reach.

• Established premium branding is expected to create a halo effect in the value segment.

Geographic performance and market dynamics

• APAC, including China and Japan, represents about 40% of revenue and is flat year-to-date; EMEA is slightly below 40% and grew 6%; Americas is around 20% but down 25%.

• Developed markets are largely replacement markets with flat to low single-digit growth, while emerging markets like China and India grow at 8%-10%.

• U.S. market faces temporary delays in capital equipment purchases due to high interest rates and construction costs, with recovery expected in the second half of FY2025 into FY2026.

• Bankruptcy of major U.S. clinics and capital spending scrutiny have contributed to market uncertainty.

Growth drivers and strategic outlook

• Key growth drivers include regulatory clearance and launch of Tomo C in China and Helix in India and other emerging markets.

• Strong customer adoption of Radixact innovations, such as ClearRT imaging and VOLO Ultra, supports growth in developed markets.

• China is expected to be a major growth lever, especially in the Type B segment, with a strong brand presence in the premium Type A segment.

• Balanced regional growth is prioritized to avoid overreliance on any single market.

• Service business expansion and innovation are seen as additional growth opportunities.