3rd Jun 2015 07:50
LONDON (Alliance News) - Advanced Oncotherapy PLC Wednesday posted a widened pretax loss for 2014 as a result of the reorganisation of its business and development of its LIGHT proton therapy system.
LIGHT stands for Linac for Image Guided Hadron Therapy. The system is based around technology Advanced Oncotherapy acquired in 2013 with ADAM, a spin-off company from the European Organization for Nuclear Research, known as CERN, in Geneva.
The company posted a pretax loss of GBP6.3 million for 2014, widened from a pretax loss of GBP3.4 million a year before, as a result of a big step-up in administrative expenses to GBP5.6 million from GBP2.0 million as it reorganised and refocused its business around the LIGHT system. It posted revenue of GBP106,378, up from GBP68,916 a year before.
The company said it remains on track to install its first LIGHT unit on Harley Street, London, by the end of 2016, with the first patient treatment expected in 2017. The company said the centre will become a "hub" for patients from London, the rest of the UK and further afield.
The system will be installed into two standard row houses in the London location, totalling 8,000 square feet. The project cost is estimated to be around GBP30 million.
Towards the end of 2014 Advanced Oncotherapy also signed a deal to install a LIGHT system at SUNY Upstate Medical University Hospital in Syracuse, New York.
Following the year-end, the company signed a purchase order with Sinophi Healthcare Ltd for a LIGHT system to be installed in a hospital in China, with an initial purchase price of around USD40 million. It raised GBP21 million in May in a share placing, which it will use to develop and install its LIGHT system in London and to support its working capital.
"The outlook for the company is very positive. Already in 2015 we have successfully completed delivery and testing of some key components and we have reached a number of key milestones as planned. There is a broad and growing market opportunity that Advanced Oncotherapy, with our unique combination of technology and strengths, is ideally placed to take advantage of," said Chief Executive Officer Sanjeev Pandya in a statement.
Shares in Advanced Oncotherapy are trading down 4.0% at 9.60 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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