6 Feb 2017 07:00
ADVANCED ONCOTHERAPY PLC
("Advanced Oncotherapy" or the "Company")
Sinophi update
Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, announces that it has come to an agreement with Sinophi Healthcare Limited ("Sinophi") to terminate the purchase orders announced on 25 March 2015 and 21 October 2015. In addition, both parties have reached an agreement to terminate the distribution agreement also announced on 25 March 2015.
Advanced Oncotherapy will retain full distribution rights for its LIGHT proton therapy system in China and other countries in South East Asia and is now in a position to re-engage with hospitals, clinics, potential distribution partners and advisory bodies, such as the UK's Department for International Trade, in the region. The Company recognises the significance of the Chinese and South East Asian radiotherapy markets, and the wider global opportunity, for the LIGHT system.
As a result of the ending of the agreement with Sinophi, Advanced Oncotherapy has repaid the deposit of $250,000 received on 18 September 2015 (recorded in the Annual Report 2015 in Note 21 as Customer order deposits received).
Advanced Oncotherapy is focused on completing the final stages of the manufacture of its first LIGHT system and remains confident that the long-term commercial success of the LIGHT machine will follow. The Company believes that demand for its next-generation proton therapy system, which has numerous advantages over existing technology, will be strong and that additional commercial sales will be secured in due course.
Commenting, Nicolas Serandour, CEO of Advanced Oncotherapy, said: "Whilst it is disappointing that we have had to terminate our arrangements with Sinophi, I am pleased that we have reached an amicable agreement and as a management team we are able to focus our full attention on manufacturing our first LIGHT system. China and South East Asia remain exciting prospective markets for our technology and I am confident that as we move closer to completing our first operational machine we will be able to deliver the commercial success that our shareholders expect."
For further information, please contact:
Advanced Oncotherapy plc | www.avoplc.com | ||||
Nicolas Serandour, Chief Executive Officer | Tel: +44 20 3617 8728 | ||||
Michael Sinclair, Executive Chairman | |||||
Stockdale Securities (Nomad & Joint Broker) | Tel: +44 20 7601 6100 | ||||
Antonio Bossi / David Coaten | |||||
Stifel Nicolaus Europe (Joint Broker) | Tel: +44 20 7710 7600 | ||||
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Walbrook PR (Financial PR & IR) | Tel: +44 20 7933 8780 or avo@walbrookpr.com | ||||
Paul McManus | Mob: +44 7980 541 893 | ||||
Anna Dunphy | Mob: +44 7876 741 001 |
About Advanced Oncotherapy plc www.avoplc.com
Advanced Oncotherapy is a provider of particle therapy with protons that harnesses the best in modern technology. 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 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 greater precision and electronic control which is not achievable with older technologies.
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.