12 Oct 2015 07:00
Circle Holdings plc
("Circle", the "Company" or "Group")
Circle to run new cancer centre on Harley Street - with the first use of new high energy proton beam technology in UK.
12 October 2015
Circle (LSE: Circ), the employee co-owned healthcare group, today announces it has signed a joint venture agreement with Advanced Oncotherapy (AIM: AVO) to operate a cancer centre in Harley Street, using new high energy proton beam technology.
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.
Circle expects to commence operating the new 11,000 square foot facility from late 2017. When fully operational, it is anticipated to treat around 500 patients a year, from the UK and across the world.
The centre will also look to offer its services to other hospitals that want access to the system - including NHS hospitals.
Once approved, it is expected to be the first high energy proton beam therapy centre in the UK, and the first centre using Advanced Oncotherapy's new proprietary treatment in the world.
Proton beam therapy uses a particle accelerator to direct a beam of protons that kills cancerous cells. This is more targeted than many existing therapies - which can damage healthy cells - making proton beam therapy particularly effective for sensitive cases, such as brain tumours or paediatric cases.
Proton beam therapy exists in a small number of centres around the world, but Advanced Oncotherapy's is a next-generation system that is a fraction of the size and significantly lower in cost than existing models.
Circle also seeks in due course to operate a similar facility alongside its proposed new-build hospital in Birmingham, which has recently received detailed planning permission.
Under the terms of the agreement, Advanced Oncotherapy and Circle plan to jointly own a newly formed company into which funding of £6 million will be provided in equal portions by the parties to cover, among other things, pre-opening costs and working capital. Once the centre commences operation the operating company will be owned 50.1% by Circle and 49.9% by Advanced Oncotherapy.
Circle will take responsibility for all operational and clinical matters at the facility as well as the procurement, fit-out and testing required to fully commission the facility for receiving patients in late 2017. Advanced Oncotherapy will take responsibility for all technical and technological matters.
Steve Melton, Chief Executive of Circle, said:
"This is great news for patients, for Circle and for Advanced Oncotherapy.
Advanced Oncotherapy are 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 and patient care with other organisations' specialist skills."
Commenting, Sanjeev Pandya, CEO of Advanced Oncotherapy, said:
"CircleHealth has a great record for providing innovative healthcare delivery and is 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 CircleHealth, we expect it to transform the UK's approach to cancer radiotherapy treatment."
For further information, please contact:
Circle Holdings plc Tel: +44 207 034 5250Steve Melton, Chief Executive OfficerPaolo Pieri, Chief Financial OfficerMedia enquiries should be directed to Gordon Hector, Head of Communications Gordon.hector@circlehealth.co.uk
Numis Securities Limited Tel: +44 207 260 1000Michael Meade, Nominated AdviserAlex Ham, Corporate Broking