Advanced Oncotherapy in talks to buy company with new cancer treatment technology

Advanced Oncotherapy has signed a heads of terms to acquire an undisclosed company that has developed state of the art technology for treating cancerous tumours.

The technology uses proton beam therapy (PBT), a form of radiation treatment for cancers which avoids harm to critical organs and tissues and reduces side effects commonly associated with traditional radiation therapies.

While PBT is the preferred radiation treatment, there are only 32 centres operating around the world due to the costs and size of facilities.

"Advanced Oncotherapy's target acquisition has, with one of the world's leading scientific establishments, concentrated on developing a low cost affordable system capable of providing PBT treatment to a large number of hospitals," the company said in a statement.

The new technology, which is based on radio frequency linear accelerators (linacs), does not need a absorber to adjust the energy to the depth of the tumour. The adjustment can be made electronically in only one hundredth of a second, instead of the second required by synchrotrons. The technology is therefore efficient and easy to maintain.

Linacs are well-suited for cost reductions in mass production as they are very light and can be pre-mounted before transportation, with a significant reduction in the installation time on site.

The proposed acquisition is subject to the completion of mutual due diligence by both parties.

Shares jumped 8.33% to 0.98p at 10:58 Monday.

RD