The radiotherapy space has long been a duopoly, but it would seem as though Elekta (OTCPK:EKTAY) is doing all it can to create opportunities for Varian (NYSE:VAR), Accuray (NASDAQ:ARAY),
and other players to chip away at its roughly 30% market share. From
overly aggressive sales practices to over-reliance on the Gamma Knife,
to serious volatility in reported results, not much has gone right over
the last three years or so.
On the positive side, Elekta has had a lot of problems
but still has that 30% market share and isn't seriously threatened by
Accuray at present. What's more, the Atlantic MRI linac combo device
could be a big step forward and an opportunity to dominate a market that
could be worth about half the company's trailing revenue base. On the
negative side, both Varian and Accuray have been picking away at the
business, the company has no near-term leverage to the proton beam
market, and a lot of credibility and investor goodwill has been chewed
up by the company's struggles.
Continue here:
Elekta Looking To Get Back On Track
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