ViewRay just announced that it has signed a non-binding memorandum of understanding with both Elekta and Medtronic. Elekta has committed to invest capital for up to a 9.9% minority interest in ViewRay, and Medtronic has agreed to invest in a minority interest in the company.
The investments from Elekta and Medtronic are conditioned upon the consummation of an equity capital raise of at least $75 million. ViewRay's largest shareholder, Fosun International Limited, has also committed capital up to an amount that would enable it to maintain its current beneficial ownership percentage in ViewRay.
ViewRay and Elekta plan to advance the knowledge and use of MR-guided radiation therapy. ViewRay and Medtronic plan to explore the clinical benefits of the MRIdian MR-guided radiation therapy system.
As MD+DI recently reported, ViewRay had a rough second quarter but third-quarter results renewed investors' faith in the Cleveland-based company that leverages MRI technology to offer oncologists real-time image guidance during radiation delivery. ViewRay's MRIdian Linac, which can help oncologists see how the body is reacting to radiation treatment in real-time, represents a significant step forward and has the potential to give the company the upper hand over competitors.