Advanced Oncotherapy Partner Extends Deadline For Distributor Talks

LONDON (Alliance News) - Proton therapy system developer Advanced Oncotherapy PLC said Tuesday talks between a Chinese distributor and a further distributor in the country have progressed beyond the March-end deadline.

Yantai Cipu, through affiliated entity Liquid Harmony, is in talks with a "major" medical equipment and pharmaceutical company in China.

In December, Advanced Oncotherapy signed a distribution deal with Yantai, which owns a 30% stake in the company, to market and sell Advanced Oncotherapy's LIGHT proton therapy treatment in China, Macau, Hong Kong, and South Korea.

The talks between Yantai and a further distributor cover the same area.

Advanced Oncotherapy said regardless of how Yantai's further talks go, the Chinese firm is contractually obliged to pay GBP16.5 million to the company under the terms of December's agreement.

Shares were down 14% on Tuesday at 38.00 pence each.