Advanced Oncotherapy PLC (LON:AVO) saw its shares jump 10% as the firm said it remains on track to build a next-generation proton therapy system capable of treating superficial tumours by the end of the third-quarter next year, according to chief executive Nicolas Serandour.
"As our technological progress advances we find ourselves in a much stronger position as we assess financing options and we have been encouraged by positive feedback,” he told investors as the company unveiled its interim results.
READ: Advanced Oncotherapy on track with development of first LIGHT system as it checks off another key milestone
“We have been able to put financing agreements in place and we hope to provide an update to shareholders on longer-term financing options in due course.”
Immediate funding needs met
AVO has the £3.9mln contribution from a consortium of investors and a £3.05mln tax credit to fund its immediate work programme.
In the six months to June 30, it has passed a number of technological milestones, including the integration and testing of the proton source, the radio frequency quadrupole and the side coupled drift tube linacs.
READ: Advanced Oncotherapy passes another key milestone
All this, according to AVO, has “significantly de-risked” the development process.
Progress is also being made at the site at Harley Street, in London’s West End, which will accommodate its state-of-the-art LIGHT system.
God particle
LIGHT stands for Linac Image Guided Hadron Technology. The technology is cheaper and smaller than the current units, which are almost prohibitively expensive.
The kit has the ability to propel protons at the speeds generated by much larger machines.
The proton accelerator used by Advanced Oncotherapy was licensed from CERN, the European Organisation for Nuclear Research, which is currently hunting the ‘God particle’.
Increasing demand
“There is an increasing demand for proton therapy globally, with millions of patients who could potentially benefit from this technology,” said chairman, Dr Michael Sinclair.
“While the access to this technology remains scarce, there is a significant unmet medical need the LIGHT system is uniquely suited to provide.
“We are in a prime position to provide a novel and disruptive technology that advances current methods of cancer treatment in the UK and worldwide.
“There is mounting evidence for the clinical superiority of proton therapy over traditional X-ray radiotherapy.
“This evidence will only increase as more proton beam centres are built and more patients are treated. LIGHT's modularity and linear design allow for mass production, shorter manufacturing lead times, easier installation/commissioning and offer both cost and clinical advantages.”
Shareholder funds increase significantly
He added he thought the company had overcome some of the most challenging milestones “in relation to the acceleration of protons, which has significantly reduced the overall technology risk of the accelerating system”.
“Going forwards, we expect to update shareholders on news flow in firing the proton beam through additional SCDTL modules, further news on the development of the PPS and on the directional dose delivery system.”
The financial impact of progress made was not insignificant, with the AVO posting a loss of £6.78mln for the six months ended June. That said this and previous investment means shareholder funds have swelled almost £10mln in the last year to £32mln.