CLEVELAND, Dec. 2, 2019 /PRNewswire/ -- ViewRay, Inc.
(Nasdaq: VRAY) announced today that it has signed a non-binding
memorandum of understanding for collaboration with Elekta AB
(Nasdaq: EKTA-B.ST) ("Elekta") to advance the knowledge and use of
MR-guided radiation therapy. In connection with the collaboration,
Elekta has committed to invest capital for up to a 9.9% minority
interest in ViewRay, subject to the terms and conditions set forth
in a commitment agreement.
Additionally, ViewRay has signed a non-binding memorandum of
understanding with Medtronic (NYSE: MDT) to enter into a clinical
collaboration in an area of mutual interest that includes exploring
the clinical benefits of the MRIdian MR-guided radiation therapy
system. In connection with the collaboration, Medtronic has
committed to invest in a minority interest in ViewRay, subject to
the terms and conditions set forth in a commitment agreement.
ViewRay's largest shareholder, Fosun International Limited
("Fosun"), has also committed capital up to an amount that would
enable it to maintain its current beneficial ownership percentage
in ViewRay, subject to the terms and conditions set forth in a
commitment agreement.
The investments from Elekta and Medtronic are conditioned upon
the consummation of an equity capital raise of at least
$75 million.
"We are pleased to announce these important collaborations and
investments in ViewRay. Our goal is to concurrently prove the value
of MR-guided radiation therapy and strengthen our balance sheet,"
said Scott Drake, President and CEO
of ViewRay. "We are well-positioned to drive MRIdian to standard of
care. The ability to see clearly during the procedure, track tumors
and soft tissues, and auto-gate the beam is integral to delivering
highly precise, personalized medicine."
Collaboration with Elekta
The key objective of the collaboration with Elekta is to advance
MR-linac technology and its application as the radiation therapy
with superior precision, medical outcomes, and operational cost
efficiency. The companies intend to facilitate clinical studies
exploring the impact of MR-guided therapy in oncology and work
jointly to expand the potential role of MR-guided therapy into
other areas that could benefit from the technology. The companies
are also exploring initiatives such as the formation of a
cooperative group and working on healthcare policy. The
collaboration is subject to the execution of definitive
documentation.
In connection with the collaboration, Elekta has committed to
invest capital for up to a 9.9% minority interest in ViewRay.
Elekta's investment in ViewRay is subject to the terms and
conditions set forth in a commitment agreement, including the
condition of consummation of an equity capital raise of at least
$75 million. In addition, Elekta's
investment in ViewRay is subject to an aggregate cap of
$36 million.
"We believe that ViewRay and Elekta can work together to drive
broad adoption of MR-linacs," said Scott
Drake, President and CEO of ViewRay. "We look forward to
further promoting this technology to benefit patients
worldwide."
"Two companies actively promoting the implementation of the
MR-linac technology in the market and collaborating on clinical
applications will benefit clinicians and their patients with better
and wider treatment options, improved outcomes, and lower costs,"
said Richard Hausmann, Elekta's
President and CEO.
Contact:
Investor Relations
Michaella Gallina
Chief of Staff, Head of Investor Relations
ViewRay, Inc.
1.720.966.1737
investors@viewray.com
About ViewRay
ViewRay®, Inc. (Nasdaq: VRAY) designs,
manufactures, and markets the MRIdian® radiation therapy system.
MRIdian is built upon a proprietary high-definition MR imaging
system designed from the ground up to address the unique challenges
and clinical workflow for advanced radiation oncology. Unlike MR
systems used in diagnostic radiology, MRIdian's high-definition MR
was purposely built to deliver high-precision radiation without
unnecessary beam distortion, and consequently, help to mitigate
skin toxicity and other safety concerns that may otherwise arise
when high magnetic fields interact with radiation beams.
Forward Looking Statements:
This press release
includes forward-looking statements, including in connection with
the collaborations with Elekta and Medtronic and the future capital
investments by Elekta, Medtronic and Fosun. Such forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
in such statements. Any forward-looking statements are based
on ViewRay's current expectations, estimates and assumptions
regarding future events and are applicable only as of the dates of
such statements. ViewRay makes no commitment to revise or
update any forward-looking statements in order to reflect events or
circumstances that may change. For a further description of
the risks and uncertainties that could cause actual results to
differ from those expressed in these forward-looking statements, as
well as risks relating to ViewRay's business in general, please
refer to the "Risk Factors" sections in ViewRay's Annual Report on
Form 10-K filed with the SEC on March 15,
2019, its Quarterly Reports on Form 10-Q filed with the SEC
on May 3, 2019, August 8, 2019, and November 12, 2019 and certain of its other
reports filed with the SEC.
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SOURCE ViewRay, Inc.