Quality, Affordable and Accessible

Sinophi signs contract with Advanced Oncotherapy to purchase next generation “LIGHT” proton therapy system for $200m oncology hospital project in Huai’an City, China

On March 25^th 2015, Sinophi Healthcare announced the signing of a purchase agreement with Advanced Oncotherapy for one LIGHT proton therapy system.  The system will be installed in the regional oncology hospital in Huai’an City, in Jiangsu province, East China in which Sinophi will be investing.  With a planned project total investment of over $200 million, construction of the first phase of the project is expected to start in 2016. This will be first of a new generation of proton beam technology machines in China, much smaller and cheaper than current generation proton beam machines.

The LIGHT proton therapy system will form a key part of this overall oncology project, supporting up to three treatment rooms, one of which will have a gantry. Once completed the hospital will be one of the most advanced oncology facilities in China, serving a catchment area of more than 20 million people in Huai’an City and the surrounding areas of North Jiangsu province. Advanced Oncotherapy’s LIGHT systems will make Huai’an City and Sinophi’s partner hospitals leaders in the field of proton beam cancer treatment in China.

The initial purchase price for the accelerator is around US$40m with the final price dependent on customization and treatment options selected.  Under the agreement, Advanced Oncotherapy will build and install the LIGHT machine as well as providing long-term maintenance and support once the system has been installed and becomes operational.

Sinophi’s oncology hospital project partners include Huai’an City’s two largest hospitals: Huai’an First People’s Hospital (3,000 beds) and Huai Yin District Hospital (1,000 beds). Sinophi has a hospital management joint venture with Huai’an First People’s Hospital and, with its financial partners led by Morgan Stanley Private Equity Asia, has invested in Huai Yin District Hospital in a US$130m deal announced in December 2014.

On March 25^th 2015 Sinophi also signed an exclusive 15-year agreement with Advanced Oncotherapy to be the company’s first tier distributor for the LIGHT system in China and other countries in SE Asia.

Commenting on the contract, Sanjeev Pandya, CEO of Advanced Oncotherapy said: “We are delighted to have teamed up with Sinophi Healthcare as our partner in China.  Signing our first commercial purchase order for our LIGHT proton beam system in Asia for the Huai’an City oncology hospital project is a major milestone for Advanced Oncotherapy.  As an investor in and manager of public hospitals in China, Sinophi Healthcare brings us deep knowledge of the Chinese hospital system and wide access to the China market.  We look forward to working on this installation in Huai’an City and to working together with Sinophi team on many more projects in China.”

Commenting on the contract, Hanif Kanji, CEO of Sinophi said: “We are very excited to be working with Advanced Oncotherapy to bring this cutting edge LIGHT system to China.   AVO’s system is substantially lower in cost compared to current technology and it delivers performance advantages in treating a variety of cancer conditions.  For the oncology hospital project in Huai’an City, the Advanced Oncotherapy LIGHT system machine will result in substantial savings compared to purchasing an equivalent current generation proton system machine.  Added to this enormous cost saving are construction savings from a footprint a quarter of the size for this machine.  For public hospitals these are huge and very welcome savings in tackling the growing costs of treating cancer and we look forward to working with our partners in Huai’an City to building this regional oncology hospital.”

Commenting on the contract, Simon MacKinnon, Chairman of Sinophi said: “Sinophi invests in and manages public general and specialty hospitals in China.  Offering affordable proton therapy through our public hospitals fits very well with Sinophi’s goal of offering quality, affordable and accessible healthcare to all patients in China.  Advanced Oncotherapy’s world-leading technology is based on their partnership with one of the world’s most formidable and productive groups of scientists at CERN.  Sinophi will be working to bring this technology both to our own hospitals and projects in China and to other hospitals around China which will now be able to afford to purchase Advanced Oncotherapy’s proton beam machines. 

About cancer in China

The size of the cancer treatment challenge in China and the opportunity for Sinophi and Advanced Oncotherapy is illustrated by data from the World Health Organisation’s “World Cancer Report”.  In 2012, China had 3.07 million newly diagnosed cancer cases, 21.8% of the world total.  China also had 2.2 million or 26.9% of the world’s total cancer deaths.  The report states China registered the most new cancer cases and deaths from four types of malignant cancer: liver, oesophagus, stomach and lung.

The “2012 China Oncology Annual Report” states cancer is the No 1 health threat in China and the leading cause of death in 2012.  Only 15% of cancer patients in China receive radiotherapy while the international norm is 50-60%. 5-year survival rates are currently 31% in China and 68% in the USA.  As of 2014, there was only 1 proton beam therapy center in China, while there were 16 proton centers in operation in the USA and 13 under construction.

The mortality rate from cancer is almost three times higher than in advanced nations due to lack of early diagnosis and proper treatment.  Environmental pollution, tobacco usage and urbanization have contributed to the higher rates of cancer in China.

About Advanced Oncotherapy Plc (www.avoplc.com)

Advanced Oncotherapy is a UK company based in London which develops next-generation proton therapy systems for cancer treatment.  It is listed on AIM on the London Stock Exchange (stock symbol: AVO).

Advanced Oncotherapy’s team based at CERN (European Centre for Nuclear Research) in Geneva focuses on the development of a proprietary proton accelerator called Linac Image Guided Hadron Technology (LIGHT). LIGHT accelerates protons to the energy levels achieved in legacy machines but in a unit whose cost and size are significantly below industry standards. This compact configuration delivers proton beams in a way that facilitates a greater precision and electronic control which is not achievable with older cancer treatment technologies.

Advanced Oncotherapy is a provider of particle therapy with protons that harnesses the best in modern technology. As a result, Advanced Oncotherapy will offer healthcare providers affordable systems that will enable them to treat cancer with an innovative technology as well as better health outcomes and lower treatment related side effects.

Link to Advanced Oncotherapy announcement dated March 25^th 2015

About Sinophi Healthcare (www.sinophi.com)

Sinophi Healthcare is a UK company investing in and managing hospitals in China, focused on public general and specialty hospitals.  Sinophi works in partnership with hospitals in China’s rapidly growing urban areas to deliver improvements in the delivery of healthcare. Sinophi brings to hospitals in China international hospital expertise, links with hospitals in the UK’s National Health Service system and partnerships with leading UK and international healthcare service and product partners.

About Huai’an City

Huai’an City (population 5.5 million) is located in Jiangsu province (population 80 million, next to Shanghai) in East China.  Huai’an City is a famous cultural and trading center on the Grand Canal and is the hometown of former Chinese Premier Zhou Enlai.