Advanced Oncotherapy PLC (LON:AVO) said its partner company, Yantai CIPU, has extended distribution negotiations with a major Chinese medical and pharmaceutical company.
The AIM-listed cancer treatment developer said negotiations between Yantai and the Chinese distributor, conducted through Yantai’s affiliate entity Liquid Harmony, would continue past the originally announced date of 31 March 2018.
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The firm previously announced on 16 February 2018 that Yantai was in advanced negotiations with the major medical equipment and pharmaceutical distribution company to accelerate and strengthen their market access in the People's Republic of China, Hong Kong, Macau, Taiwan and South Korea.
Advanced Oncotherapy entered into an exclusive distribution agreement with Yantai CIPU in December 2017, with Yantai agreeing to pay the firm £16.5mln.
The group added that it had been provided assurance that regardless of the outcome of the negotiations, Yantai Cipu, and its affiliated entity Liquid Harmony, were contractually committed to the terms of the December 2017 agreement which included the receipt of the £16.5mln payment.
Advanced Oncotherapy shares were down 2.2% to 43p in mid-morning trading Tuesday.