8 Feb 2016 07:00
ADVANCED ONCOTHERAPY PLC
("Advanced Oncotherapy" or the "Company")
Industrialisation agreement with Thales
Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, announces that it has entered into an industrialisation agreement with Thales, for its proprietary LIGHT system.
This agreement with Thales provides Advanced Oncotherapy with the support needed to move from the first LIGHT system, currently being developed for use at the Company's flagship Harley Street site, to full commercial roll-out and a fully industrialised machine series production.
Thales is a well-established manufacturer of high RF energy equipment including klystrons, electron tubes, amplifiers and X-ray detectors, as well as synchrotrons, accelerators and advanced medical imaging equipment. They will offer Advanced Oncotherapy access to Thales's unique execution and engineering skills to manage the transition from prototype to a series production manufacturing line, as well as cost reduction capabilities.
As part of the agreement, Thales will undertake the initial engineering studies and test facilities commissioning required to construct the custom-designed series production line. The cost of these activities will be funded by Advanced Oncotherapy and recovered through the retention of 100% gross margin on the initial LIGHT machines produced. In addition, in the future Thales intends to organise the series production so as to drive down costs, whilst operating under an appropriate quality framework.
Commenting, Dr. Michael Sinclair, Executive chairman of Advanced Oncotherapy, said: "This partnership is an important step in ensuring a successful commercial roll-out of our LIGHT system once the first system is installed at our Harley Street site. We are delighted that our technology has attracted a partner with the expertise and global reach of Thales and whilst we already expect our system to be available at a fraction of the cost of current proton therapy machines, the cost reduction skills of Thales will ensure that this next generation proton therapy system is affordable and so more widely available for cancer patients around the world. This agreement also opens up huge opportunities for a quicker production ramp-up in a market characterised by high demand."
Eric Huber, Managing Director of Large Instruments activity at Thales, commented: "Thales will rely on its extensive experience in scientific accelerator integration to manage the transition from prototype to the series production of the LIGHT machine. This new LIGHT concept is on the cusp of a steepening adoption curve with tremendous growth potential."
Advanced Oncotherapy Plc | www.avoplc.com |
Dr. Michael Sinclair, Executive Chairman Sanjeev Pandya, CEO | Tel: +44 20 3617 8728 |
Nicolas Serandour, CFO |
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Stockdale Securities (Nomad & Joint Broker) |
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Antonio Bossi / David Coaten | Tel: +44 20 7601 6100 |
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Beaufort Securities (Joint Broker) |
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Jon Belliss / Elliot Hance | Tel: +44 20 7382 8300 |
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Walbrook PR (Financial PR & IR) | Tel: +44 20 7933 8780 or avo@walbrookpr.com |
Paul McManus / Anna Dunphy | Mob: +44 7980 541 893 / Mob: +44 7876 741 001 |
About Thales www.thalesgroup.com
Thales is a global technology leader for the Aerospace, Transport, Defence and Security markets. With 61,000 employees in 56 countries, Thales reported sales of €13 billion in 2014. With over 20,000 engineers and researchers, Thales has a unique capability to design and deploy equipment, systems and services to meet the most complex security requirements. Its unique international footprint allows it to work closely with its customers all over the world.
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 a 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.
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.