Advanced Oncotherapy (AVO) has signed a Letter of Intent ("LOI") with Geneva-based investment advisory and asset management firm, Saba Partners SA, for the proposed purchase of a three-treatment room LIGHT system which is valued up to $107m or £75.5m.
LIGHT systems (LIGHT) are next-generation proton therapy systems developed by Advanced Oncotherapy for cancer treatment. In this case, its LIGHT system is proposed to be purchased by Saba Partners for installation in a proton therapy centre in Glion, Switzerland.
Abdullah Alghamdi of Saba Partners explained that Saba is looking to build a centre of excellence for cancer treatment in Glion as the first step in building an ecosystem of medical centres, and that Advanced’s LIGHT system represents “a key element” to this ambition.
Advanced said the total contract value reflects the purchase of the LIGHT equipment, its installation and an extended long-term maintenance and warranty agreement.
Advanced explained that Saba Partners has ‘decades of experience’ in healthcare services and healthcare real estate, with the group having recently acquired a site in Glion, close to Montreux, Switzerland, where they plan to start building a medical centre of excellence.
Shares in Advanced Oncotherapy jumped 10.45% higher to 37p following the news.
Advanced Oncotherapy said it intends to enter into an exclusivity agreement with Saba for the provision of proton therapy services in the Gulf Cooperation Council ("GCC").
The group said it expects to benefit from Saba Partners' presence in the Saudi Arabian hospital sector 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.
Saba Partners said it holds “a strong presence” in the medical area in the GCC region, including in 12 locations totalling more than 500 hospital beds and 3,000 employees.
“This is an attractive platform to support the commercial roll-out of the LIGHT Systems in the region,” said Alghamdi who highlighted to shareholders that Saba Partners shares Advanced’s vision of democratising proton therapy through innovative technologies.
While the LOI is non-binding in nature, both parties have agreed under terms to use their best efforts to finalise legal documentation and enter into a binding agreement by 31 March 2022. A condition of the LOI is AVO obtaining the applicable CE marking clearances, it said.
Advanced said it will receive no payments prior to the CE certification being in place and said there can be no guarantee that a binding agreement will be entered into for the purchase of the LIGHT system by Saba nor as to the final terms of any such binding agreement.
“Saba Partners' choice of Advanced Oncotherapy demonstrates our position to help medical providers meet a significant unmet medical need,” said Nicolas Serandour, CEO of AVO.
"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.
As we move towards certification of our first commercial LIGHT system in Daresbury, we remain on track for the proton-accelerating units to accelerate protons to 230 MeV, the energy required for therapeutic applications, to occur later this year and we continue to progress the installation of the treatment room with University Hospitals Birmingham NHS Foundation Trust,” he added.
The company announced back in January 2021 a partnership with DiaMedCare AG to offer its customers in Europe and the US easier access to the LIGHT system through a flexible financing solution that reduces the need for large initial upfront payments from customers.
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