(Alliance News) - Advanced Oncotherapy PLC on Thursday said that Saba Partners SA plans to pay USD107 million to install three rooms of its Light proton therapy system in a Swiss clinic.
The London-based medical company has entered into a non-binding agreement with the Geneva-based investment advisory & asset management firm to install its Light therapy system at a proton therapy centre in Glion, Switzerland. The Light system is a modular radiotherapy device used to treat cancer.
The transaction includes the purchase of the systems, installation and long-term maintenance by Advanced Oncotherapy along with a warranty agreement between the two firms.
Payments will be made once both companies enter a binding agreement, which will occur by at least March 31, 2022. Before this, Advanced Oncotherapy said it must attain CE marking clearances for its Light system. CE markings indicate that a device meets the EU's standards for health, safety and environmental protection.
Advanced Oncotherapy previously partnered with DiaMedCare AG in January, to offer the Light system to customers across the United States and Europe. DiaMedCare acquired the Light systems to lease them back to Advanced Oncotherapy's customers. The partnership was used to bridge manufacturing costs until the Light system was received by customers.
Advanced Oncotherapy plans to enter an exclusivity agreement with Saba Partners to provide its Light system to members of the Gulf Cooperation Council - including Bahrain, Egypt, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates - where Saba Partners has a "strong presence" in the medical industry.
The company is also making progress on installing the Light system in the UK, seeking certification for its first commercial Light system in Daresbury, Cheshire. The Science and Technology Facilities Council website noted its agreement with Advanced Oncotherapy to "build a mass assembly and testing centre" at its Daresbury Laboratory.
Chief Executive Officer of Advanced Oncotherapy, Nicolas Serandour, said: "Today's announcement represents another key milestone for Advanced Oncotherapy and demonstrates the significant potential market for the Light system where we estimate that 4,000 proton therapy centres are required worldwide while only 95 facilities currently exist."
Advanced Oncotherapy shares were trading up 9.1% at 36.55 pence each in London on Thursday afternoon.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Advanced Oncotherapy (AVO)