Elekta's new strategy to focus on growth and access to radiation therapy

Rhea-AI Summary

Elekta outlined its mid-term strategy, Access 2025, during its Capital Markets Day on June 7, 2021. CEO Gustaf Salford emphasized the need for over 300 million cancer patients to access radiation therapy, particularly in emerging markets where demand exceeds the current supply of 14,000 linear accelerators. The strategy focuses on innovation, customer integration, and enhancing radiation therapy technology, supported by reinforced ESG goals. CFO Johan Adebäck projected more than 7% net sales growth annually until 2024/25, indicating a positive financial outlook.

Positive

• Mid-term guidance indicates a compound annual net sales growth rate of over 7% until 2024/25.
• Strong position and growth potential in emerging markets for radiation therapy equipment.
• Focus on innovation and strategic partnerships to enhance patient outcomes.

Negative

• None.

STOCKHOLM, June 7, 2021 /PRNewswire/ -- At Elekta's (EKTA-B.ST) Capital Markets Day, CEO, Gustaf Salford, and members from his executive management team introduced the company's mid-term strategy, called Access 2025. The strategy reflects the work the company will continue to do to pursue the vision of a world where everyone has access to the best cancer care.

Gustaf Salford said that he wanted to see more than 300 million people with cancer gaining access to radiation therapy, an integral part of most cancer treatments. The identified clinical need for linear accelerators (linacs) globally is around twice the number of the current installed base (14,000 linacs) and the gap is largest in emerging markets. Although these countries comprise 85 percent of the global population, they only have 40 percent of the total installed base of radiation therapy devices. Nevertheless, Elekta has a strong position in emerging markets and continues to grow, offering more patients greater hope for better outcomes.

Ensuring that equipment reaches the patient is just the beginning of the solution. Elekta's new strategy will also address improving radiation therapy technology and advanced techniques such as hypofractionation and adaptive treatments. At the same time, data, in the form of oncology informatics, will enable patients, as well as their care teams, to influence and improve their outcomes.

The Access 2025 strategy is built on four pillars: innovation, partner integration, customer focus and driving adoption of radiation therapy across the globe, reflecting Elekta's vision to create a world where everyone has access to the best cancer care. These are supported by reinforced Environmental, Social and Governance (ESG) goals.

Maurits Wolleswinkel, President Linac Solutions & Chief Product Officer, expanded on Elekta's innovation strategy. He highlighted its development of a comprehensive digital software transformation program, formation of strategic partnerships and doubling of Elekta's AI efforts. He added that the efforts will be supported by an increased investment in innovation in the coming years.

Related to this innovation strategy, Gustaf Salford announced a strengthened partnership with Philips to develop solutions that streamline the path from cancer diagnosis to survivorship, resulting in better patient outcomes. (see press release: Elekta and Philips extend strategic partnership in precise and individualized oncology care)

CFO, Johan Adebäck, concluded the Capital Markets Day with a financial overview, stating that Elekta continues to show growth. He explained the financial impact of the new strategy driving Elekta's mid-term guidance of a compound average net sales growth rate of more than seven percent until 2024/25, as well as an improved EBIT margin.

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For further information, please contact:
Mattias Thorsson, Vice President, Head of Corporate Communications
Tel: +46 70 865 8012, e-mail: Mattias.Thorsson@elekta.com  
Time zone: CET: Central European Time

Cecilia Ketels, Head of Investor Relations
Tel: +46 76 611 76 25, e-mail: cecilia.ketels@elekta.com
Time zone: CET: Central European Time

About Elekta

For almost five decades, Elekta has been a leader in precision radiation medicine. Our more than 4,000 employees worldwide are committed to ensuring everyone in the world with cancer has access to – and benefits from – more precise, personalized radiotherapy treatments. Headquartered in Stockholm, Sweden, Elekta is listed on NASDAQ Stockholm Exchange. Visit elekta.com or follow @Elekta on Twitter.

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SOURCE Elekta

FAQ

What is Elekta's Access 2025 strategy?

Elekta's Access 2025 strategy aims to improve access to radiation therapy for over 300 million cancer patients globally, focusing on innovation and customer integration.

What are the financial projections for Elekta following the Capital Markets Day?

Elekta forecasts a compound average net sales growth of over 7% annually until 2024/25, along with an improved EBIT margin.

How does Elekta plan to address the global need for linear accelerators?

Elekta plans to expand its presence in emerging markets, where the demand for linear accelerators is significantly higher than current supply.

What role does innovation play in Elekta's strategy?

Innovation is central to Elekta's strategy, with plans for digital transformation, strategic partnerships, and increased investment in AI.