SUNNYVALE, Calif. and TIANJIN, China, Jan.
28, 2019 /PRNewswire/ -- Accuray Asia Limited, a subsidiary
of Accuray Incorporated (NASDAQ: ARAY), and CNNC High Energy
Equipment (Tianjin) Co., Ltd, a
subsidiary of China Isotope and Radiation Corporation (HKSE:
01763), today announced the formation of a joint venture ("JV") to
manufacture and sell radiation oncology systems in China. Under the terms of the agreement,
CIRC's subsidiary will own 51% of the JV and Accuray's subsidiary
will own the remaining 49%. Accuray and CIRC believe that the JV,
which will operate under the name CNNC Accuray (Tianjin) Medical Technology Co., Ltd., will be
uniquely positioned to serve the world's largest growth market for
radiation oncology systems by helping to meet critical market
demand as stipulated by the Ministry of Health of the People's Republic of China, as well as
addressing longer-term unmet needs. Additionally, by leveraging the
strengths and capabilities of both Accuray and CIRC, CNNC Accuray
(Tianjin) Medical Technology Co.,
Ltd. is designed to have a competitive advantage through its
locally branded and manufactured innovative radiation therapy
products.
CIRC has long-admired Accuray's transformative technology in
helping cancer patients live longer, better lives. The Company
looks forward to the new JV providing leading-edge technologies and
delivering a full range of radiation therapy and radiosurgery
treatments to the Chinese medical professionals and their patients.
In a few years, as the JV attains China-based manufacturing, CNNC Accuray
(Tianjin) Medical Technology Co.,
Ltd. will be uniquely positioned within the local radiation
oncology industry and viewed in China as an authentic Chinese brand and
manufacturer.
"Today's announcement, which follows an extensive, 18-month
evaluation process, advances Accuray's mission to bring innovative,
life-saving radiation products to cancer patients. We believe that
by uniting CIRC's strong market access, significant local
manufacturing experience and extensive infrastructure in
China combined with Accuray's
precise, innovative treatment solutions, the JV will be ideally
positioned to effectively address unmet patient needs and improve
lives in the world's largest market for radiation oncology," said
Joshua H. Levine, president and
chief executive officer of Accuray.
The JV will be located in Tianjin,
China and sales operations are expected to begin
toward the end of calendar 2019. During the interim period,
Accuray's current Chinese distributor will continue its efforts to
maximize orders and revenue. Accuray and CIRC believe that CIRC's
market position from both a regulatory and commercial perspective
will benefit the joint venture and allow greater market access to
the recent China quotas and
licenses released on October 29, 2018
for 188 Type A radiotherapy systems and 1,208 Type B radiotherapy
systems through the end of calendar 2020.
CNNC Accuray (Tianjin) Medical
Technology Co., Ltd. will be governed by a seven-member Board of
Directors, four of whom will be appointed by CIRC and three of whom
will be appointed by Accuray.
Conference Call Details
Accuray will host a conference call beginning at 6:00 a.m. PT/9:00 a.m.
ET today to discuss the joint venture. Conference call
dial-in information is as follows:
U.S. callers: (855) 867-4103
International callers: (262) 912-4764
Conference ID Number (U.S. and international): 6899809
Individuals interested in listening to the live conference call
via the Internet may do so by logging on to Accuray's website,
www.accuray.com. In addition, a taped replay of the conference call
will be available beginning approximately two hours after the
call's conclusion and available for seven days. The replay
telephone number is (855) 859-2056 (USA) or (404) 537-3406 (International),
Conference ID: 6899809. An archived webcast will also be available
at Accuray's website
About Accuray
Accuray Incorporated (NASDAQ: ARAY) is a radiation oncology
company that develops, manufactures and sells precise, innovative
treatment solutions that set the standard of care with the aim of
helping patients live longer, better lives. The company's
leading-edge technologies deliver the full range of radiation
therapy and radiosurgery treatments.
About CIRC
CIRC is 73.83% owned by China National Nuclear Corporation
(CNNC), the leading nuclear technology conglomerate in China. CIRC was established in 1983 and is
based in Beijing. The Stock trades
on Hong Kong stock exchange
(July 2018 IPO).
CIRC is the leader in the field of isotopes and irradiation
technology applications in China
and the largest manufacturer of imaging diagnostic and therapeutic
radiopharmaceuticals, UBT kits and analyzers and radioactive source
products in China (as of 2017). As
of December 31, 2017, sales network
covered more than 10,000 hospitals and other medical institutions
across more than 30 provinces.
Safe Harbor Statement
Statements made in this press release that are not statements of
historical fact are forward-looking statements and are subject to
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements in this press
release relate, but are not limited, to the JV's positioning in,
and ability to serve, the China
market; the JV's anticipated competitive advantage in the
China market; the products and
technologies to be offered by the JV; the anticipated timing of the
JV's sales and manufacturing operations; the anticipated perception
of the JV in China as an authentic
Chinese brand and manufacturer; the effect of CIRC's market
position on market access for the JV; and Accuray's leadership
position in radiation oncology innovation and technologies.
These forward-looking statements involve risks and
uncertainties. If any of these risk or uncertainties
materialize, or if any of Accuray's assumptions prove incorrect,
actual results could differ materially from the results express or
implied by these forward-looking statements. These risks and
uncertainties include, but are not limited to, the inability to
commence operations of the JV in a timely manner; disruptions
resulting from operationalizing the JV; the JV's ability to obtain
necessary licensure; market acceptance of Accuray and the JV's
products in China; the JV's
ability to develop a locally branded product that meets customers'
needs and competes favorably in the China market; geopolitical factors; risks and
uncertainties related to the JV's customers being able to procure
China Class A or Class B licenses; and such other risks
identified under the heading "Risk Factors" in Accuray's Quarterly
Report on Form 10-Q, filed with the Securities and Exchange
Commission (the "SEC") on November 6,
2018 , and as updated periodically with the company's other
filings with the SEC.
Forward-looking statements speak only as of the date the
statements are made and are based on information available to
Accuray at the time those statements are made and/or management's
good faith belief as of that time with respect to future
events. Accuray assumes no obligation to update
forward-looking statements to reflect actual performance or
results, changes in assumptions or changes in other factors
affecting forward-looking information, except to the extent
required by applicable securities laws. Accordingly, investors
should not put undue reliance on any forward-looking
statements.
Contacts:
Accuray Investor
Contacts:
Brian
Moore
EVC Group LLC
310-770-0389
bmoore@evcgroup.com
Michael Polyviou
EVC Group LLC
732-933-2754
mpolyviou@evcgroup.com
Accuray Media Contact:
Beth Kaplan
Accuray Incorporated
+1 (408) 789-4426
bkaplan@accuray.com
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SOURCE Accuray Incorporated