C-RAD - Accurately positioned for growth

Taking leadership in Surface Guided Radiation Therapy C-RAD’s technology becoming a standard-of-care tool Solid growth path with SEK 1. 4bn annual market potential C-RAD driving the paradigm shift of SGRT Sweden-based medtech company C-RAD provides solutions that aim to ensure high precision, safety, and efficiency in advanced radiation therapy. More precisely, it engages in the field of Surface Guided Radiation Therapy (SGRT), offering optical surface tracking for patient positioning and monitoring. SGRT is a relatively novel solution, with the benefits of being non-ionizing and non-invasive while improving workflow and time efficiency.

SGRT is currently gaining wider adoption in the radiation therapy community, with a current penetration rate of ~20%. Newly installed systems have been growing by 20% in the last three years, and we argue that C-RAD is set to take leadership with a solution set to become a standard-of-care tool. Multiple factors point to SGRT becoming standard of care Given the shift towards more advanced delivery techniques in radiotherapy, reimbursement schemes incentivizing it, and larger industrial players currently trying to increase their presence in the SGRT field, we argue that C-RAD’s value proposition is strong.

While SGRT has slowly started to become a routine tool for clinics, it has historically been hindered by a lack of clinical guidelines and consensus documents. However, we see good progress in the field, with leading American organization AAPM about to release a report that includes clinical guidelines and recommendations for SGRT. AAPM recommendations are not only seen as standard in North America, but in Europe as well.

Overall, we find this to be a good catalyst for further market adoption. DCF valuation indicates a range of SEK 42-90 per share We initiate coverage of C-RAD with a DCF-based fair value range of SEK 42-90 derived from three scenarios with different SGRT attachment rates and C-RAD market shares. With a s.