# Advanced Oncotherapy Four components integrated

- Link: https://www.directorstalkinterviews.com/advanced-oncotherapy-four-components-integrated/412760103
- Published: 2018-10-17T10:30:45+01:00
- Author: Charlotte Edwards

**[⌊Hardman & Co Report Report Downloads⌉⌊Hardman & Co Report Report Downloads⌉[Advanced Oncotherapy**(
LON:AVO)  goal is to deliver an affordable and novel proton therapy system (PT),
based on
 state-of-the-art technology developed originally at the world-renowned
CERN. Achievement of major technical milestones has boosted confidence greatly, 
and the group remains on track with its strategy. AVO has successfully integrated
the four types of structures that constitute the LIGHT accelerator and has overcome
technical challenges. The proton beam has been recorded at an energy of 52MeV, sufficient
to treat superficial tumours. With the distribution agreement in place for SE Asia,
partnerships with both RaySearch and the STFC, and strengthening of its financing
structure, AVO is now on a much firmer footing.

► **Strategy**: AVO is developing a compact and modular PT system at an affordable

price for the payor, financially attractive to the operator, and generating superior
patient outcomes. AVO benefits from the technology know-how developed by ADAM, Geneva,
and relies on a base of world-class suppliers.

**► Major milestone achieved**: The biggest technical challenge for the proton
 
accelerator has now been overcome. Integration of all the four components at CERN’s
testing facility in Geneva is, in our opinion, a major milestone that significantly
de-risks the whole project. AVO now has an accelerator that has been powered-up,
demonstrated its ability to perform as predicted, and accelerated a proton beam 
to an energy of 52MeV.

► **Interims**: Investment in LIGHT during 2018 has been broadly in line with our

forecasts. Moreover, to date in fiscal 2018, AVO has raised ca.£40m, which has left
the balance sheet debt-free and with net cash of £3.3m, boosted subsequently by 
a Placing (£6.4m gross) and a tax credit of £2.9m, providing flexibility in future
funding discussions.

► **Risks**: With funding secured so far in 2018, AVO’s visibility and its ability
to
 maintain the fast pace of its development plan have improved. Execution risk
remains, but the more complex technical challenges have now been overcome, and integration
of the remaining CCL units is a technically easy step towards getting a fully functional
accelerator.

► **Investment summary**: Demand for PT is increasing worldwide, and the need for
a
 small, flexible, affordable and close-to-patient system is desirable. Advanced
Oncotherapy has attracted strong partners, and discussions with potential customers
are advancing. Progress at the flagship Harley Street site has been substantial 
and installation of the first LIGHT system is planned to start in mid-2019. The 
latest technical update has brought further assurance and boosted confidence.

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