Oncotherapy Resources Limited

RNS Number : 2257Z

CareCapital Group plc

13 March 2012

 



13 March 2012

CARECAPITAL GROUP PLC

("CareCapital" or "the Company")

Formation of Oncotherapy Resources Limited

Second Innovative Cancer Treatment to be Launched in the UK

CareCapital (AIM: CARE) announces the formation of Oncotherapy Resources Limited ("Oncotherapy Resources"), a Company registered in England, that will provide a managed service to early stage breast cancer patients in the UK NHS, Ireland and private treatment centres.  The service will be based on exclusive access to the Xoft Axxent Electronic Brachytherapy System® ("the Xoft System").  CareCapital will own 75% of Oncotherapy Resources with the balance held equally by two companies, the principal European distributor of the XoftSystem, Pergentium Ltd, and Duncan Hynd Associates Ltd, a leader in the distribution of advanced radiotherapy products and a pioneer in the provision of prostate seed implants as a service.  CareCapital will have the right to acquire the 25% of Oncotherapy Resources that it does not own after four years.

The Xoft System uses an electronic X-ray source instead of a radioactive isotope to deliver radiation internally.  The low energy and rapid dose fall-off of the electronic source allow for treatment in rooms with reduced shielding requirements compared to conventional radiation therapy.  The Xoft System can be used for both high dose rate brachytherapy and for intraoperative radiation therapy ("IORT").  IORT provides clinicians the option to perform radiotherapy in the operating room at the time of lumpectomy. 

The Xoft System is lightweight and mobile and can be moved easily between treatment locations.  This means that it can overcome the logistical challenges faced by many patients who may have to travel long distances to access conventional radiotherapy.  The managed service to be provided by Oncotherapy Resources has the potential to benefit the NHS by enabling patients to receive therapy locally and more cost-effectively due to the reduced need for shielding (allowing clinical staff to remain with the patient during treatment) and, in the case of IORT, the ability to provide a one-off dose rather than the conventional daily radiotherapy for up to six weeks.  There are around 20,000 patients annually receiving lumpectomy surgery in the UK, of which most would benefit from the Xoft System.

In the UK private sector, for-profit providers who are seeking to offer radiotherapy closer to the patient, or which wish to offer a complete range of state-of-the-art treatments in one centre, the ability to offer an electronic brachytherapy system for IORT could be an attractive proposition.  Private providers could also refer patients to Oncotherapy Resources' managed service but provide it at their own centres due to the portability of the Xoft System.

The Xoft System has recently seen the first installation in Europe (in Germany) and there are 62 operational sites in the United States.

Commenting on Oncotherapy Resources, Dr Michael Sinclair, Chairman of CareCapital, said, "This ticks all the boxes for patients - accessibility, usability and cost effectiveness - while still delivering the same outcomes as conventional radiotherapy.

"From CareCapital's viewpoint, it also ticks all the boxes - a proven, state-of-the-art cancer therapy already successfully in operation and a good strategic fit alongside proton beam therapy into what I hope will become our growing portfolio of innovative cancer treatments."

For further information, please visit www.carecapital.co.uk or contact:

Mike Sinclair, Chairman Paul Stacey, Managing Director	Sandy Jamieson	Jon Levinson	Simon Hudson,
CareCapital Group Plc	Libertas Capital Corporate Finance Ltd	Rivington Street Corporate Finance	Tavistock Communications
0203 617 8739 (Mike Sinclair)	(NOMAD & Joint Broker)	(Joint Broker)	(Financial PR & IR)
0203 617 8730 (Paul Stacey)	020 7569 9650	020 7562 3357	020 7920 3150

About CareCapital

CareCapital is building a portfolio of innovative cancer services to capture opportunities in the cancer diagnosis and treatment market, building on the Group's 28.75% stake in Advanced Proton Solutions (Holdings) Ltd - the company that is pioneering the use of Proton Beam Therapy in the UK and which has secured planning approval for its first London based centre off Moorgate in the City of London, within easy access of a number of London's major hospitals.

CareCapital also specialises, as an innovative developer, in primary care real estate, particularly multi-occupancy premises that accommodate a variety of different, but often synergetic healthcare providers. This is particularly relevant at a time when the Government is intent on expanding primary care, bringing more services together under one roof and closer to patients in their own communities.  Working in partnership with local authorities, projects can involve significant urban regeneration, with mixed-use and mixed-economy developments incorporating housing, healthcare, childcare, retail and other appropriate facilities for the community.

About Xoft

Based in Sunnyvale, Calif., Xoft is a subsidiary of NASDAQ listed iCAD Inc. (www.iCAD.com) that develops Electronic Brachytherapy (eBx) systems based upon miniaturized X-ray tube technology for the practice of radiation oncology in a broad range of clinical settings, eliminating the need for heavily shielded environments.  The Axxent treatment platform provides a therapeutic dose of radiation directly to the region at risk with minimal radiation exposure to surrounding healthy tissue and without the logistics and costs associated with using radioactive isotopes.  FDA-cleared for treatment of early stage breast cancer, skin cancer and endometrial cancer, the Axxent System is also cleared for use in the treatment of other cancers or conditions where radiation therapy is indicated including IORT. For more information please visit www.xoftinc.com

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