First commercial sale of LIGHT machine in China

RNS Number : 3560I

Advanced Oncotherapy PLC

25 March 2015

 

25 March 2015

ADVANCED ONCOTHERAPY PLC

("Advanced Oncotherapy" or the "Company")

First commercial sale of LIGHT proton therapy system for c. US$40m

& 15 year distribution agreement in China and a select number of other countries in SE Asia 

Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, announces that Sinophi Healthcare Limited ("Sinophi") has signed a purchase agreement for one LIGHT proton therapy system to be installed in a hospital in China. This follows a number of on-going Letters of Intent to purchase the system as well as the announcement of a Harley Street facility to house the first LIGHT machine in London and represents the Company's first full commercial purchase order.

Sinophi is a UK company investing in and managing public general and specialty hospitals in China, providing them with the best and most affordable technology to improve patient outcomes. Sinophi expects to install Advanced Oncotherapy's LIGHT system as part of its oncology hospital project in Huai'an City, in Jiangsu province, East China. The initial purchase price for the accelerator is around US$40m with the final price dependent on customisations and treatment options selected by Sinophi. Payment will be satisfied through a schedule of milestone payments. Under the agreement, Advanced Oncotherapy will build and install the LIGHT machine as well as providing long-term maintenance and support once the system has been installed and becomes operational.

Sinophi is creating a regional oncology hospital with a planned project total investment of over $200 million. Construction of the first phase of the project is expected to start in early 2016. The LIGHT system will form a key part of this overall oncology project, supporting up to three treatment rooms, one of which will have a gantry. Once completed the hospital will be one of the most advanced oncology facilities in China, serving a catchment area of more than 20 million people in Huai'an City and the surrounding areas of North Jiangsu province. Advanced Oncotherapy's LIGHT systems will make Huai'an City and Sinophi's partner hospitals leaders in the field of proton beam cancer treatment in China.

Sinophi's oncology hospital project partners include Huai'an City's two largest hospitals: Huai'an First People's Hospital (3,000 beds) and Huai Yin District Hospital (1,000 beds). Sinophi has a hospital management joint venture with Huai'an First People's Hospital and, with its financial partners led by Morgan Stanley Private Equity Asia, has invested in Huai Yin District Hospital in a US$130m deal announced in December 2014. 

The size of the cancer treatment challenge in China and the opportunity for Advanced Oncotherapy is illustrated by data from the World Health Organisation's "World Cancer Report".  In 2012, China had 3.07 million newly diagnosed cancer cases, 21.8% of the world total.  China also had 2.2 million or 26.9% of the world's total cancer deaths.  The report states China registered the most new cancer cases and deaths from four types of malignant cancer: liver, oesophagus, stomach and lung. 

In addition to this first project, Sinophi has signed an exclusive 15-year agreement with Advanced Oncotherapy to become the Company's first tier distributor for the LIGHT system in China and a number of other countries in Southeast Asia.   

Commenting on the agreement, Sanjeev Pandya, CEO of Advanced Oncotherapy, said: "We are delighted to have signed our first commercial purchase order for our LIGHT system and to have teamed up with an excellent partner. I look forward to working with the Sinophi team on this first installation in China and have no doubt that this partnership will provide us with wider access into the China market. We continue to work towards our first operational facilities in Syracuse, New York, and Harley Street, London, and I am confident that this deal is the first of many commercial opportunities for our LIGHT system around the world."

Commenting on the agreement, Hanif Kanji, CEO of Sinophi said: "We are very excited to be working with Advanced Oncotherapy to bring this cutting edge LIGHT system to China.  We are very pleased to be able to offer patients in Sinophi's hospitals and other hospitals across China and Southeast Asia access to proton treatment technology.  AVO's system is substantially lower in cost compared to current technology and it delivers performance advantages in treating a variety of cancer conditions.  Offering affordable proton therapy through our public hospitals fits very well with Sinophi's goal of offering quality, affordable and accessible healthcare to all patients in China."

Advanced Oncotherapy Plc	www.avoplc.com
Sanjeev Pandya, CEO	Tel: [phone]
Nicolas Serandour, CFO
Westhouse Securities (Nomad & Joint Broker)
Antonio Bossi / David Coaten	Tel: [phone]
Beaufort Securities (Joint Broker)
Saif Janjua / Jon Levinson	Tel: [phone]
David Conway & Co Solicitors (Legal counsel) David Conway	Tel: [phone]
Walbrook PR (Financial PR & IR)	Tel: [phone] or [e-mail]
Paul McManus / Anna Dunphy	Mob: [phone] / Mob: [phone]

About Advanced Oncotherapy Plc www.avoplc.com

Advanced Oncotherapy's team based at CERN in Geneva focuses on the development of a proprietary proton accelerator called Linac Image Guided Hadron Technology (LIGHT). LIGHT accelerates protons to the energy levels achieved in legacy machines but in a unit that is a quarter of the size and between a quarter and a fifth of the cost. This compact configuration delivers proton beams in a way that facilitates a greater precision and electronic control which is not achievable with older technologies.

Advanced Oncotherapy is a provider of particle therapy with protons that harnesses the best in modern technology. As a result, Advanced Oncotherapy will offer healthcare providers affordable systems that will enable them to treat cancer with an innovative technology as well as better health outcomes and lower treatment related side effects.

Advanced Oncotherapy continually monitors the market for any emerging improvements in delivering proton therapy and actively seeks working relationships with providers of these innovative technologies. Through these relationships, the Company will remain the prime provider of an innovative and cost-effective system for particle therapy with protons.

About Sinophi Healthcare www.sinophi.com

Sinophi Healthcare is a UK company investing in and managing hospitals in China, focused on public general and specialty hospitals.  Sinophi works in partnership with hospitals in China's rapidly growing urban areas to deliver improvements in the delivery of healthcare. Sinophi brings to hospitals in China international hospital expertise, links with hospitals in the UK's National Health Service system and partnerships with leading UK and international healthcare service and product partners.

Huai'an City

Huai'an City (population 5.5 million) is located in Jiangsu province (population 80 million, next to Shanghai) in East China.  Huai'an City is a famous cultural and trading center on the Grand Canal and is the hometown of former Chinese Premier Zhou Enlai.     

 

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