ViewRay inks deal with Elekta, Medtronic

Image-guided radiation therapy vendor ViewRay has signed a nonbinding memorandum of understanding to collaborate with radiation oncology vendor Elekta and device manufacturer Medtronic on MR-guided radiation therapy.

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. The two plan to study the effect of MR-guided therapy in oncology and work to expand the potential role of MR-guided therapy into other areas. The companies could also form a cooperative group and work on healthcare policy, they said.

With Medtronic, the firms will explore the clinical benefits of the MRIdian MR-guided radiation therapy system. Similar to Elekta, Medtronic will also invest a minority interest in ViewRay, subject to the terms and conditions set forth in a commitment agreement.

ViewRay's largest shareholder, Fosun International, committed capital up to an amount that would allow 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 an equity capital raise of at least $75 million.

In other ViewRay news, the vendor commenced an underwritten public offering of $75 million of shares of its common stock. ViewRay expects to grant the underwriters a 30-day option to purchase up to an additional $11.25 million of shares of common stock at the public offering price, minus underwriting discounts and commissions.

The offering is subject to market and other conditions, and ViewRay cannot estimate whether or when the offering may be completed or the actual size or terms of the offering.

ViewRay intends to use the net proceeds for working capital and general corporate purposes, such as capital expenditures, research and development expenses, investments, commercial expenses, clinical data generation costs, and infrastructure expenses, the firm said.