IBA announces strategic licensing deal for Proteus®PLUS in China worth a minimum of EUR 100 million
Collaboration with CGNNT to further strengthen access to the growing Chinese proton therapy market
Louvain-La-Neuve, Belgium, 26 August 2020 - IBA (Ion Beam Applications S.A., EURONEXT), the world’s leading provider of proton therapy solutions for the treatment of cancer, announces today that it has signed a strategic licensing deal with CGN Nuclear Technology Development Co., Ltd. (“CGNNT”) which is listed on the Shenzhen Stock Exchange, and its wholly-owned subsidiary CGN Dasheng Electron Accelerator Technology Co., Ltd (“CGN Dasheng”), for the exclusive rights to IBA’s Proteus®PLUS* technology in China.
The overall minimum deal value to IBA is more than EUR 100 million. The first payment of EUR 20 million is due in the coming days with the following payment milestones foreseen over the next four years. In addition to this amount, the contract foresees an important stream of annual royalty revenues on future sales by CGN Dasheng. As part of the agreement, IBA will grant exclusive rights for the use of its Proteus®PLUS technology to CGNNT and CGN Dasheng solely in the People’s Republic of China (PRC) excluding Hong Kong, Taiwan and Macau area. IBA however maintains the right to enter directly into sales of up to 5 Proteus®PLUS contracts currently under negotiation in the PRC. The deal value includes a licensing fee, technology support, the sale of sub-systems for a Proteus®PLUS solution and installation support.
IBA will be responsible for assisting and training CGN Dasheng’s workforce in the development, production, operation and maintenance of the Proteus®PLUS technology. IBA and CGN Dasheng will work together to enhance the proton therapy offering, marketing, sales, sourcing and clinical information in the PRC.
Proton Therapy in China is set to expand strongly over the next few years as the Chinese government announced a few weeks ago that it is expanding the number of proton therapy licenses from 10 to 16 this year. The partnership between IBA and CGNNT will bring together the world’s leading proton therapy technology and strong production capacities in China, further supporting our leading position in this proton therapy market. In addition, IBA and CGNNT will explore possibilities for cooperating in IBA’s other business lines in the future.
Olivier Legrain, Chief Executive Officer of IBA, commented: “China represents a market of high strategic importance to IBA. We are excited to have agreed such a significant, long-term collaboration with a major Chinese company, which will enable IBA to further strengthen its leading position in the region. The recent announcement that the Chinese Government will be increasing the number of PT licenses for 2020 and beyond will further strengthen this position. The scale of the deal with CGNNT is testament to the quality of our market-leading proton therapy system. We are looking forward to working with CGNNT in China and are confident that this partnership will help to improve the standard of cancer care in the region, further enhance support to our clients in China and bring new opportunities to our employees as the installed base grows”
Dongming Hu, General Manager of CGNNT, commented: “We have long been impressed by the excellence of IBA’s proton therapy technology and its commitment to improving cancer care for patients. Proton therapy is an increasingly important modality in the treatment of cancer patients in China and this collaboration is integral to ensuring that we enable many more Chinese patients to gain access to this cutting-edge, life-saving treatment.”
IBA (Ion Beam Applications S.A.) is a global medical technology company focused on bringing integrated and innovative solutions for the diagnosis and treatment of cancer. The company is the worldwide technology leader in the field of proton therapy, considered to be the most advanced form of radiation therapy available today. IBA’s proton therapy solutions are flexible and adaptable, allowing customers to choose from universal full-scale proton therapy centers as well as compact, single room solutions. In addition, IBA also has a radiation dosimetry business and develops particle accelerators for the medical world and industry. Headquartered in Belgium and employing about 1500 people worldwide, IBA has installed systems across the world.
IBA is listed on the pan-European stock exchange NYSE EURONEXT (IBA: Reuters IBAB.BR and Bloomberg IBAB.BB).
More information can be found at: www.iba-worldwide.com
IBA’s Proteus®PLUS is tailored, scalable, and leading-edge solution configured for excellence. It is a made-to-measure, image-guided, intensity-modulated, proton beam technology which enables a proton therapy center to treat more patients suffering from the broadest array of complex cancer conditions.
* Proteus®PLUS is the brand name of Proteus®235
CGNNT (stock code: 000881.SZ) is a leading company in the nuclear technology application industry that was restructured and listed in Shenzhen Stock Exchange on February 27, 2017, after the major asset restructuring of CGN Nuclear Technology Application Co., Ltd. and China Dalian International Cobusiness (Group) Holdings Ltd. Up to now, CGNNT has completed the layout of core business units such as accelerator manufacturing, application development and technical service and modified polymer material. Their market share leads the nation. CGNNT mainly incubates such emerging services as radiation detection and security inspection (managed) and new irradiation application, and actively expands to high-end fields such as nuclear medicine (especially PT field), nuclear agricultural science and nuclear environmental protection, with market size firmly ahead in China.
More information can be found at: http://www.cgnnt.com.cn
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