>>Citi released a report today which discusses the implications of Accuracy's (NASDAQ: ARAY) acquisition of TomoTherapy (NASDAQ: TOMO) and its effects on Varian Medical Systems' (NYSE: VAR) market share. While the deal will allow ARAY to expand from radiosurgery into radiotherapy, Citi analysts do not believe this will have near-term impacts on VAR's position in the radiation oncology market. This is due in part to VAR's relatively large market share of 55% compared to the single-digit shares of ARAY and TOMO.
Analysts further note that despite TOMO's recent underperformance, the newly combined organization should be profitable in future quarters. ARAY has expanded its market share but is still trailing key competitors such as Varian, Elekta, and Siemens. Analysts also believe that the ARAY deal is the best possible outcome for TOMO.
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