Advanced Oncotherapy sells LIGHT therapy system to Sinophi for $40m

LONDON (ShareCast) - Shares (Berlin: DI6.BE - news) in Advanced Oncotherapy (AVO) jumped 55% after it announced Sinophi Healthcare will buy its LIGHT (Other OTC: LGSXY - news) proton therapy system for $40m to be used in a hospital in China. AVO said the purchase of the Linac Image Guided Hadron Technology (LIGHT), a particle therapy systems machine, follows a number of letters of intent.

The deal stipulates that AVO will install and maintain the LIGHT machine once it becomes operational.

Sinphi also signed an exclusive 15-year agreement to become AVO's first tier contributor for the LIGHT system in China and other Southeastern Asian countries.

Chief executive Sanjeev Pandya said the sale will give the group wider access into the Chinese market.

Hanif Kanji, the chief executive of Sinophi, said: AVO's system is substantially lower in cost compared to current technology and it delivers performance advantages in treating a variety of cancer conditions.

"Offering affordable proton therapy through our public hospitals fits very well with Sinophi's goal of offering quality, affordable and accessible healthcare to all patients in China." Westhouse analysts said: "Today's news means AVO is the best-positioned company in the world, in our view, to take advantage of Proton Beam Therapy becoming a more mainstream cancer treatment in the next five years, hence we are happy to reiterate our 'buy' rating." Shares were up 54.95% to 7.05p on Wednesday at 12:10.