Financings In Brief
This article was originally published in The Gray Sheet
Executive Summary
Accuray goes public: Maker of the CyberKnife robotic radiosurgery system tabs $50 million of its $171.3 million in initial public offering proceeds to expand marketing efforts for the device while another $40 million is for R&D, according to the company. Accuray's IPO Feb. 8 consisted of 18.4 million shares priced at $18 each - including 10.4 million shares offered by the company and 8 million shares offered by selling shareholders - totaling $331.2 million. CyberKnife is 510(k) cleared to provide treatment planning and image-guided robotic radiosurgery for tumors anywhere in the body where radiation treatment is indicated (1"The Gray Sheet" Dec. 1, 2003, p. 15). Accuray reported revenue of $52.9 million in fiscal 2006 (ended June 30) - a 136% leap from the prior year. The firm's net loss of $33.7 million in 2006 compares to a loss of $25.2 million a year earlier. Accuray competes primarily with makers of frame-based radiosurgery systems including Elekta, BrainLab and Integra Life Sciences. Other radiotherapy system makers include Siemens, Varian Medical, Elekta and TomoTherapy. Radiosurgery differs from traditional radiotherapy in that it delivers a high dose of radiation directly to a tumor rather than the surrounding area, Accuray explains. Underwriters for the IPO include JP Morgan, UBS Investment Bank, Piper Jaffray and Jefferies & Company...