Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, has told DirectorsTalk that it has entered into an industrialisation agreement with Thales, for its proprietary LIGHT system.
This agreement with Thales provides Advanced Oncotherapy with the support needed to move from the first LIGHT system, currently being developed for use at the Company’s flagship Harley Street site, to full commercial roll-out and a fully industrialised machine series production.
Thales is a well-established manufacturer of high RF energy equipment including klystrons, electron tubes, amplifiers and X-ray detectors, as well as synchrotrons, accelerators and advanced medical imaging equipment. They will offer Advanced Oncotherapy access to Thales’s unique execution and engineering skills to manage the transition from prototype to a series production manufacturing line, as well as cost reduction capabilities.
As part of the agreement, Thales will undertake the initial engineering studies and test facilities commissioning required to construct the custom-designed series production line. The cost of these activities will be funded by Advanced Oncotherapy and recovered through the retention of 100% gross margin on the initial LIGHT machines produced. In addition, in the future Thales intends to organise the series production so as to drive down costs, whilst operating under an appropriate quality framework.
Commenting, Dr. Michael Sinclair, Executive chairman of Advanced Oncotherapy, said: “This partnership is an important step in ensuring a successful commercial roll-out of our LIGHT system once the first system is installed at our Harley Street site. We are delighted that our technology has attracted a partner with the expertise and global reach of Thales and whilst we already expect our system to be available at a fraction of the cost of current proton therapy machines, the cost reduction skills of Thales will ensure that this next generation proton therapy system is affordable and so more widely available for cancer patients around the world. This agreement also opens up huge opportunities for a quicker production ramp-up in a market characterised by high demand.”
Eric Huber, Managing Director of Large Instruments activity at Thales, commented: “Thales will rely on its extensive experience in scientific accelerator integration to manage the transition from prototype to the series production of the LIGHT machine. This new LIGHT concept is on the cusp of a steepening adoption curve with tremendous growth potential.”
