ViewRay Announces Collaborations with Elekta and Medtronic

Tuesday, December 03, 2019

ViewRay, Inc. announced that it has signed a non-binding memorandum of understanding for collaboration with Elekta AB 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.