Advanced Oncotherapy PLC’s (LON:AVO) agreement with Saba Partners, an investment consultant in the Gulf region, potentially opens the door to additional markets, says research house goetzpartners.
The letter of intent announced today relates to a single system to be installed in Glion, Switzerland with a contract value of up to US$107mln (£75.5mln).
Goetzpartners, which has a target price of 135p and 'outperform' rating, adds it had already factored in deals such as this into its forecasts but with the first operational system now close to completion, commercial traction is now the key driver.
As clinical development inflection points are passed, such as the first patent being treated this should see momentum build.
Advanced Oncotherapy signs initial deal to provide LIGHT system treatment rooms for £75.5mln
The non-binding agreement covers a 3-room system to be installed at a cancer treatment centre in Glion, Switzerland which is currently under development by Saba Partners and the firm's investors. The £75.5mln contract is also conditional on receiving CE marking by the end of March 2022.
Saba Partners is currently looking to build a network of healthcare centres in the Gulf region.
Aim-listed Advanced Oncotherapy shares rose 10% to 37p.