by John R. Fischer
, Senior Reporter | July 19, 2023
MR-guided radiotherapy developer ViewRay has filed for bankruptcy, along with certain subsidiaries, and intends to sell a portion or all of its assets to support its customers during the process.
The company is the designer of the MRIdian MRI-Guided Radiation Therapy System, the world’s first solution for imaging and treating cancer patients simultaneously. The high-definition MR scanner locates, targets and tracks the position and shape of tumors during radiation treatment with MR imaging, reducing uncertainty. It has three locations in Colorado, Ohio, and California.
ViewRay filed for Chapter 11 of Title 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The news sent its stock plummeting by over 65%, as of July 17, according to Seeking Alpha
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"We deeply appreciate our teammates, customers, partners, and patients that we serve. We will continue to work diligently to maximize value for the benefit of all stakeholders,” said Paul Ziegler, who was appointed the company’s chief executive officer on July 15 following Scott Drake’s transition to a company director position, in a statement.
It also appointed Sanket Shah from vice president, deputy general counsel to senior vice president, general counsel.
To support the process financially, the company will use cash reserves, plus approximately $6 million in debtor-in-possession financing from MidCap Financial Services.
It also will strategically manage inventory for maintenance and support of its MRIdian systems at customer sites worldwide.
In preparation for the sale, the company has downsized its staff. Phillip Spencer and Gail Wilensky also resigned from its board of directors on July 15 prior to ViewRay filing its petitions. It has decreased its board from nine members to seven.
The company’s total revenue in 2022 was $102.2 million, up from approximately $70.1 million in 2021.
When contacting ViewRay for a comment, HCB News received an automatic reply, referring it to a press release on the matter.