Accuray’s Purchase of Tomotherapy Increases Number of Company’s Installed Products

By John Otrompke

The purchase of radiation tool manufacturer Tomotherapy last month increases Accuray’s position as a radiation oncology provider, and may also provide result in new therapies being made available.

Accuray purchased Tomotherapy (located in Madison, Wisconsin) for about $277 million in cash and stock. Of shares outstanding, 79% voted in favor of the transaction, which offered shareholders a premium of approximately 30% of the stock price.

“Tomotherapy’s machine is similar to the Cyberknife, but slightly different, in that it is a gantry-based system,” meaning that the device uses a rotational ring around the patient, according to Rob Hill, vice president of engineering at Accuray.

The use of the gantry allows for 360 degree administration of radiation doses, while reducing radiation exposure to surrounding healthy tissue, according to the company.
 The acquisition will also more than double Accuray’s installed base, from 226 up to 550 machines in place in 32 countries. Of the two companies’, 30% of their 2010 income was generated from service contracts to installed machines.
 The company will maintain a presence in Madison, according to Accuray.