Advanced Oncotherapy Consolidating market

Download reportAdvanced Oncotherapy Plc (LON:AVO) is focused on delivering a more affordable, novel, proton-based radiotherapy system, based on technology originally developed at the world-renowned CERN. Major milestones have been achieved in 2017 and the company remains on track with its development plan to deliver and install the first LIGHT system in 2019. Confidence has been enhanced greatly by technical milestones, a distribution agreement in China and SE Asia, and a sizeable capital increase. An announcement that Hitachi and Mitsubishi Electric are integrating their respective proton therapy offerings into a single entity is a recognition of the value of this global opportunity.

Strategy: To develop a compact, modular and affordable proton therapy system that generates superior patient outcomes. AVO benefits from the technology know-how developed by ADAM, a medical spin off from CERN, and relies on a base of world-class suppliers.

Consolidation: Hitachi (TSE:6501) and Mitsubishi Electric (TSE:6503) have announced their intention to combine their respective proton therapy offerings into a single entity, to generate efficiencies in the design, manufacture and commercialisation of their systems and to offer better post-installation service.

Global presence: Mitsubishi is ranked #2 in Japan but has no installations outside its home territory; in contrast, Hitachi is #1 in Japan, and has developed also a solid presence in the US, where it has four installations. The combined entity will become global #2 in the installed base of treatment rooms.

Risks: Although AVO has its own specific risks with the development and funding of LIGHT and Harley Street, this deal also poses some risk. It creates another large competitor for AVO; but also highlights the significant opportunity for AVO and underlines the challenges that key competitors with their circular accelerators face, in particular the challenge to align offer and demand.

Investment summary: Demand for Proton Therapy is increasing worldwide and the need for a small, flexible, and affordable machine is apparent. AVO is well positioned with its disruptive offering of a flexible & affordable system. Although no financial information regarding Hitachi-Mitsubishi has been released, the deal indicates the high value of having a global offering in this growth industry.

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Facebook
    Twitter
    LinkedIn
    Hardman & Co

    More articles like this

    Hardman & Co

    Advanced Oncotherapy: Understanding the significance of 230MeV

    Advanced Oncotherapy plc (LON:AVO) goal is to deliver an affordable and novel PT system, called LIGHT, based on state-of-the-art technology, developed originally at the world-renowned CERN. The complex assembly of the first LIGHT accelerator in Daresbury

    Hardman & Co

    Advanced Oncotherapy: Major milestone achieved

    Advanced Oncotherapy plc (LON:AVO) goal is to deliver an affordable and novel PT system, called LIGHT, based on state-of-the-art technology, developed originally at the world-renowned CERN. The complex assembly of its first LIGHT accelerator in Daresbury

    Hardman & Co

    Advanced Oncotherapy: LIGHT – regulatory update

    Advanced Oncotherapy plc (LON:AVO) goal is to deliver an affordable and novel PT system, called LIGHT, based on state-of-the-art technology developed originally at the world-renowned CERN. The company is in the process of completing the complex

    Hardman & Co

    Advanced Oncotherapy: On the home straight

    Advanced Oncotherapy plc (LON:AVO) goal is to deliver an affordable and novel PT system, called LIGHT, based on state-of-the-art technology developed originally at the world-renowned CERN. Over the past two years, important technical milestones have significantly

    Hardman & Co

    Advanced Oncotherapy: Funded to completion

    Advanced Oncotherapy plc (LON:AVO) goal is to deliver an affordable and novel PT system, called LIGHT, based on state-of-the-art technology developed originally at the world-renowned CERN. Over the past two years, important technical milestones have significantly

    Hardman & Co

    Advanced Oncotherapy: Leveraging the modularity of LIGHT

    Advanced Oncotherapy plc (LON:AVO) goal is to deliver an affordable and novel PT system, called LIGHT, based on state-of-the-art technology developed originally at the world-renowned CERN. Over the past two years, important technical milestones have significantly

    Hardman & Co

    Advanced Oncotherapy funded through to clinical events

    AVO’s goal is to deliver an affordable and novel proton therapy (PT) system, called LIGHT, based on state-of-the-art technology developed originally at the world-renowned CERN. Over the past two years, the project has been significantly de-risked

    Hardman & Co

    Advanced Oncotherapy Rapidly changing to commercial execution

    Advanced Oncotherapy plc (LON:AVO) is the topic of discussion when Dr Martin Hall Analyst at Hardman & Co joins DirectorsTalk. Martin talks us through the interesting developments being made at the company, commercial deals, brings us up

    Hardman & Co

    Advanced Oncotherapy Confidence in LIGHT gaining momentum

    The Advanced Oncotherapy PLC (LON:AVO) goal is to deliver an affordable and novel proton beam therapy (PBT) system, based on state-of-the-art technology developed originally at the world-renowned CERN. In the past 18 months, the project has

    Hardman & Co

    Why is Advanced Oncotherapy well positioned for the future?

    Advanced Oncotherapy plc (LON:AVO) is the topic of conversation when Dr Martin Hall, Head of Life Sciences at Hardman & Co joins DirectorsTalk. Martin talks us through some interesting developments at the company, explains what has

    Hardman & Co

    Advanced Oncotherapy FLASH benefits from new US reimbursement

    Advanced Oncotherapy‘s (LON:ONC) goal is to deliver an affordable and novel proton beam therapy (PBT) system, based on state-of-the-art technology developed originally at the world-renowned CERN. In the past 18 months, the project has been de-risked