par John R. Fischer
, Senior Reporter | August 27, 2020
Ion Beam Applications (IBA) has signed a strategic licensing deal with China’s CGN Nuclear Technology Development (CGNNT) Co. for the exclusive rights to IBA’s ProteusPLUS technology.
Worth a minimum of 100 million EUR (approximately $118 million USD), the agreement gives CGNNT and its wholly-owned subsidiary CGN Dasheng Electron Accelerator Technology (CGN Dasheng) the rights to use ProteusPLUS technology solely in the People’s Republic of China, excluding Hong Kong, Taiwan, and Macau. The deal follows the Chinese government’s decision to expand the number of proton therapy licenses from 10 to 16 in 2020.
"We have been present in China for more than 15 years and are the leading PT provider in China," Olivier Legrain, chief executive officer of IBA, told HCB News. "We already have one system treating patients and two more close to completion. Globally, our systems lead the market in the number of patients treated. The deal with CGN Nuclear Technology Development further cements our position as the market leader in the region, with a commitment to providing the best possible care to patients and maximizing patient access to proton therapy in China."
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The value of the deal includes a licensing fee, technology support, the sale of sub-systems for a ProteusPlus solution and installation support. IBA will assist and train CGN Dasheng’s workforce in the development, production, operation and maintenance of the ProteusPLUS technology. IBA and CGN Dasheng will also work to enhance proton therapy offerings, marketing, sales, sourcing and clinical information in the East Asian country.
A number of companies are looking to become involved in or grow their presence in the Chinese proton therapy market. C-RAD, for instance, recently signed a deal with IBA to supply its Catalyst surface tracking solution
at the Shenzhen Proton Center. Mevion Medical Systems also recently sold a MEVION S250i Proton Therapy System
with HYPERSCAN Pencil Beam Scanning to Jinshazhou Hospital of Guangzhou University of Chinese Medicine.
"The move is certainly an excellent opening for more hospitals to access this leading technology," said Legrain. "We hope that as more and more centers start to treat patients, this will create a virtuous cycle with more centers opening and thus, enabling the treatment to be offered to even more patients."
Outside of the deal, IBA has the right to enter directly into sales of up to five ProteusPLUS contracts currently under negotiation in China.
The first payment of 20 million will be made in the coming days with the following payments made over the next four years. An important stream of annual royalty revenues on future sales by CGN Dasheng is also expected.