Could Elekta's mystery new product help it grab market share from rival Varian?
This article was originally published in Clinica
Radiotherapy specialist Elekta will be launching a new product that it describes as "the future of radiotherapy" on 1 March, prompting excitement among analysts. "While the company has yet to provide details about the new system, our due diligence suggests that it will likely be a state-of-the-art IGRT [image-guided radiotherapy] system, focused on the higher-end part of the market, and competitive vs [Varian Medical Systems'] TrueBeam," wrote Goldman Sachs' Veronika Dubajova.
Stockholm, Sweden-based Elekta was number 56 in last year's Clinica 100, some way behind arch rival and radiotherapy market leader Varian at number 29. Elekta reported revenues of SEK9.05 billion ($1.4 billion) in fiscal year 2012, versus Varian's $2.87 billion in FY2012.
Ms Dubajova views Elekta's latest news as "a positive", adding that she had not expected a new system launch from the company in calendar year 2013. "Assuming strong execution, we believe this could be the key to driving further share gains in US," she said. She described the Swedish firm as "the best-positioned company within our coverage universe" and reiterated her "buy" rating.
The unveiling of the mystery product will take place in Atlanta, Georgia. The company declined to comment on what the regulatory status of the device will be at the time of its launch.
Elekta's shares on the OMX Nordic Exchange are currently trading at around SEK100 ($15.60) – Ms Dubajova has given a 12-month target share price of SEK138.