Accuray to Acquire Morphormics, Inc.

Acquisition Allows Accuray to Provide Leading-Edge Image Processing Software and Further its Mission to Deliver Personalized Treatment Solutions

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Accuray Incorporated

Jul 16, 2012, 08:30 ET

SUNNYVALE, Calif., July 16, 2012 /PRNewswire/ -- Accuray Incorporated (Nasdaq: ARAY), the premier radiation oncology company, announced today that they have signed a definitive agreement to acquire Morphormics, Inc., a privately held company founded by University of North Carolina at Chapel Hill faculty members based on their research in autosegmentation of medical images. Morphormics develops medical imaging software systems that automatically recognize and extract anatomical structures from medical images. The agreement provides that Accuray will pay approximately $5.7 million.

In 2008, Accuray began licensing Morphormics' autocontouring technology, which automatically identifies and draws the boundaries of the prostate and surrounding critical structures. This enables the treatment planning software to focus the radiation dose on the prostate and minimize the delivery of radiation to surrounding critical structures. With the acquisition of Morphormics, Accuray plans to extend autocontouring capabilities for both the CyberKnife® Robotic Radiosurgery System and the TomoTherapy® System to improve disease specific workflows.

"Since our licensing agreement with Morphormics began, we have seen firsthand the benefits the company's technology provides clinicians in improving efficiency, especially in the treatment of prostate cancer, and its potential to improve patient outcomes," said Euan S. Thomson, Ph.D., Accuray president and chief executive officer. "The acquisition of Morphormics will expand Accuray's IP portfolio, reduce our licensing expenses and strengthen our engineering team with top talent from the University of North Carolina at Chapel Hill. This strategic acquisition is another important step toward providing leading-edge treatment solutions personalized for each cancer patient."

"This is an exciting opportunity for our company that will bring the benefits of our technology to more patients," said Edward Chaney, Ph.D., co-founder of Morphormics and professor of Radiation Oncology and Biomedical Engineering at the University of North Carolina at Chapel Hill. "Accuray's acquisition confirms the value our technology offers in its ability to dramatically increase efficiency and accuracy in the delivery of image-guided medical treatment. We look forward to joining the Accuray team and further advancing innovation in this area."

About Accuray

Accuray Incorporated (Nasdaq: ARAY), based in Sunnyvale, Calif., is the premier radiation oncology company that develops, manufactures and sells personalized 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 – the CyberKnife and TomoTherapy Systems – are designed to deliver radiosurgery, stereotactic body radiation therapy, intensity modulated radiation therapy, image guided radiation therapy, and adaptive radiation therapy. To date 635 systems have been installed in leading hospitals around the world. For more information, please visit www.accuray.com.

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 technology's clinical applications, clinical benefits, improved efficiency, and the Company's leadership position in radiation oncology innovation. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including risks detailed from time to time under the heading "Risk Factors" in the Company's reports Form 10-Q for the first, second and third quarters of fiscal 2012. Forward-looking statements speak only as of the date the statements are made and are based on information available to the Company at the time those statements are made and/or management's good faith belief as of that time with respect to future events. The Company 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 place undue reliance on any forward-looking statements.

SOURCE Accuray Incorporated