Advanced Oncotherapy PLC Operator agreement with CircleHealth for Harley St (8892B)
October 12 2015 - 1:00AM
UK Regulatory
TIDMAVO TIDMCIRC
RNS Number : 8892B
Advanced Oncotherapy PLC
12 October 2015
12 October 2015
ADVANCED ONCOTHERAPY PLC
("Advanced Oncotherapy" or the "Company")
Operator agreement with CircleHealth for Harley St site
Advanced Oncotherapy (AIM: AVO), the developer of
next-generation proton therapy systems for cancer treatment,
announces that it has signed a joint venture agreement with
CircleHealth ("Circle") to operate the Company's proton beam cancer
therapy centre in Harley Street.
Circle, owned by AIM-listed Circle Holdings plc (AIM: CIRC)
which is an employee co-owned company, runs hospitals and
healthcare across the UK. It has nearly 2,000 partners, working
across four UK sites.
Under the terms of the agreement, Advanced Oncotherapy and
Circle will jointly own a newly formed company into which funding
of GBP6 million will be provided in equal portions by the parties
and will cover, inter alia, pre-opening costs and working capital.
The arrangement, together with further definitive agreements to be
finalised in the coming months, would combine Circle's
clinician-led operating model with Advanced Oncotherapy's
next-generation proton therapy systems for cancer treatment. Once
the centre commences operation the equity in the operating company
will be owned as to 50.1% by Circle and the remaining 49.9% by
Advanced Oncotherapy.
The Harley Street facility will house the UK's first high energy
proton beam cancer therapy centre. Circle Health will take
responsibility for all operational and clinical matters at the
facility as well as the additional procurement, fit-out and
facility testing requirements needed for full commissioning and
beyond the testing required during the technical development of the
system. Circle Health will also take responsibility for insurance
provision for the centre. Advanced Oncotherapy will take
responsibility for all technical matters. A number of proposals
from international financial institutions concerning the provision
of vendor finance for the LIGHT technology in Harley Street are
being considered.
The LIGHT (short for Linac Image Guided Hadron Technology)
system, is a proprietary proton accelerator that will offer
healthcare providers affordable proton therapy systems to treat
cancer using a technology that in many instances can produce better
health outcomes and lower treatment related side effects. The LIGHT
system achieves the required energy levels found in legacy proton
therapy machines but in a unit that is a fraction of the size and
significantly lower in cost. The compact configuration of the LIGHT
system lends itself perfectly to the installation of this
technology in such central city locations, and the Harley Street
site will house London's first ever proton therapy unit.
The Company is also in discussions with Circle surrounding an
agreement to supply its LIGHT system alongside CircleHealth's
planned new-build independent hospital in Edgbaston,
Birmingham.
Steve Melton, Chief Executive of CircleHealth, said:
"This is great news for patients, for Circle and for Advanced
Oncotherapy. Advanced Oncotherapy is creating a genuinely
revolutionary technology, at the cutting edge of cancer treatment.
We're delighted to be working with them. When completed this deal
means the expansion of Circle into London - giving us a presence in
one of the world's greatest medical centres - and into cancer care,
where there is huge potential for new technologies and exciting new
treatments. For Circle, this is a clear signal of our intention to
grow and expand, by combining our experience in operations with
other organisations' specialist skills."
Commenting, Sanjeev Pandya, CEO of Advanced Oncotherapy,
said:
"Circle Health has a great record for providing innovative
healthcare delivery and are the ideal candidate to operate our
flagship Harley Street site. Whilst we expect our ongoing business
model to focus on Advanced Oncotherapy as a manufacturer of cutting
edge proton therapy systems, we felt it was crucial, given the
strategic importance of our first site in Harley Street, to have a
vested interest in the ongoing operational success of our facility.
Working alongside Circle Health, we expect it to transform the UK's
approach to cancer radiotherapy treatment."
Advanced Oncotherapy Plc www.avoplc.com
Sanjeev Pandya, CEO Tel: +44 (0)20 3617 8728
Nicolas Serandour, CFO
Westhouse Securities (Nomad
& Joint Broker)
Antonio Bossi / David Tel: +44 (0)20 7601 6100
Coaten
Beaufort Securities (Joint
Broker)
Jon Levinson / Zoe Alexander Tel: +44 (0)20 7382 8300
Walbrook PR (Financial Tel: +44 (0)20 7933 8780
PR & IR) or avo@walbrookpr.com
Paul McManus / Anna Dunphy Mob: +44 (0)7980 541 893
/ Mob: +44 (0)7876 741 001
About Advanced Oncotherapy Plc www.avoplc.com
Advanced Oncotherapy's team "ADAM" based 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 fraction of the size and significantly lower in 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.
The Company has signed a purchase agreement with Sinophi
Healthcare Limited for one LIGHT proton therapy system to be
installed in a hospital in China and has further Letters of Intent
from other healthcare providers.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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