Advanced Oncotherapy PLC (LON:AVO) saw its shares jump higher on Monday as the developer of next-generation proton therapy systems for cancer treatment announced a deal with the Mediterranean Hospital of Limassol in Cyprus.
In a statement, the AIM-listed firm said the hospital has agreed to purchase a LIGHT system for €50mln.
Under the terms of the agreement, the installation of a three-treatment room system is due to commence before the end of 2023, to coincide with the completion of construction works being carried out at the hospital.
The Mediterranean Hospital of Limassol is partly owned by the Mediterranean Hospital of Cyprus in Limassol, one of the largest private hospitals in Cyprus.
In addition to the €50mln consideration for the provision of the turnkey solution payable to the company, Advanced Oncotherapy, the Mediterranean Hospital of Cyprus and Synergy Wealth Management S.A. will also receive a share of the net profits from the clinical services.
The company said further update announcements in respect of the Agreement and the schedule of payments to be received by Advanced Oncotherapy will be made in due course.
Nicolas Serandour, Advanced Oncotherapy’s CEO, commented: "This agreement for the purchase of a LIGHT system is a significant milestone for Advanced Oncotherapy in our plan for growth.”
He added: “This agreement with the Mediterranean Hospital of Limassol follows our recently announced partnerships with The London Clinic and the Cleveland Clinic, and further builds our network with well-recognised institutions who are keen to promote a more affordable and efficient delivery of proton.”
Dr Andreas Panayiotou, founder of the Mediterranean Hospital of Cyprus, commented: "The Mediterranean Hospital of Cyprus is excited that we will be able to provide patients with access to Advanced Oncotherapy's LIGHT system for proton therapy which is designed to increase the efficacy of treatment and improve quality of life for patients through a reduction of side effects.”
In early trading, Advanced Oncotherapy shares were 12.5% higher at 40.50p.