A subsidiary of California-based Accuray (NSDQ:ARAY) has entered a joint venture with a Chinese company to manufacture and sell radiology oncology systems in China, the companies said today.
Accuray Asia Ltd. will work with Tianjin-based CNNC High Energy Equipment, a subsidiary of China Isotope and Radiation (HKSE:01763). CNNC will own 51% of the joint venture, known as CNNC Accuray (Tianjin) Medical Technology, and Accuray’s subsidiary will own the rest.
The companies’ leaders believe they 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 by addressing longer-term unmet needs.
“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,” said Accuray president and CEO Joshua Levine in a prepared statement. “We believe that by uniting (China Isotope and Radiation’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.”
CNNC Accuray will be located in Tianjin and sales operations are expected to begin toward the end of calendar 2019. Accuray and China Isotope and Radiation said they believe that the latter’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.
Accuray partnered with GE Healthcare in 2016, collaborating on financing options for Accuray’s CyberKnife and TomoTherapy Systems. The deal was designed to make it easier for clinicians in Europe to offer the systems.