Advanced Oncotherapy PLC (LON:AVO) announced it has signed a letter of intent with Saba Partners for the proposed purchase of a three-treatment room LIGHT system for a total contract value of up to US$107mln (£75.5mln).
The AIM-listed firm is developer of next-generation proton therapy systems for cancer treatment, called LIGHT systems, while Saba is an investment advisory and asset management firm based in Geneva with decades of experience in healthcare services and healthcare real estate.
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The contract value reflects the purchase of the LIGHT equipment, its installation and an extended long-term maintenance and warranty agreement, said the healthcare group.
The system would be installed in a proton therapy centre in Glion, Switzerland, where Saba plans to start building a medical centre.
This potential partnership follows the company’s announcement in January 2021 with DiaMedCare AG to offer its customers in Europe and the US easier access to its LIGHT system through a flexible financing solution that reduces the need for large initial upfront payments from customers.
The firm said it intends to enter into an exclusivity agreement with Saba Partners for the provision of proton therapy services in the Gulf Cooperation Council (GCC).
Under the agreement, Advanced Oncotherapy will benefit from Saba Partners’ presence in the Saudi Arabian hospital sector in order to make the LIGHT system available to countries within the GCC region consisting of Bahrain, Egypt, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates.
The letter of intent is non-binding and both parties have agreed to sign a binding deal by 31 March 2022, while Advanced Oncotherapy will not receive money before obtaining the relevant CE marking clearances.
“Saba Partners’ choice of Advanced Oncotherapy demonstrates our position to help medical providers meet a significant unmet medical need,” said AVO chief executive Nicolas Serandour.
“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.”