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.

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.

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

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"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

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