What happened

Thursday was a fine day for radiation therapy device maker ViewRay (VRAY) and its shareholders. The company announced a new supply deal that sent its stock price nearly 12% higher.

So what

ViewRay and Australian privately-held oncology and cardiac healthcare services company GenesisCare announced jointly that they have entered into a master purchase agreement. Under the terms of the deal, GenesisCare will buy up to 14 of ViewRay's MRIdian MR-Guided Therapy Systems for its operations in both the U.K. and in Ft. Myers, Florida. This will give GenesisCare the capacity to provide radiation therapy to patients at three of its treatment centers in the former country, in addition to the U.S. location.

Neither company revealed the price nor the leading terms of the arrangement.

A doctor in a consultation with a person holding a tablet.

Image source: Getty Images.

Regardless, GenesisCare is a major "get" for the relatively small and specialized ViewRay. According to the two companies, GenesisCare is the world's No. 1 provider of cancer services. It has over 440 oncology and heart care centers, and it's represented throughout the world with operations in its native Australia, Europe, and the U.S. The companies said that GenesisCare treats over 400,000 patients annually.

Now what

Without knowing the financial particulars of the deal, it's tough to judge how it will affect ViewRay's fundamentals. Yet it almost doesn't matter; GenesisCare is a large and powerful player in its segment, and if ViewRay can make it a satisfied customer the Australian company might end up being an important and regular source of revenue for years to come.