Cancer firm in $120m order blow after Chinese shun deal

The AIM-listed company behind a revolutionary cancer treatment suffered a major blow today after its Chinese customer pulled the plug on orders worth around $120 million (£96 million).

Advanced Oncotherapy, which is developing a proton-beam therapy centre at Harley Street, said Sinophi Healthcare — its only overseas commercial customer — had terminated two orders announced in 2015 that were supposed to be installed at hospitals in China.

Shares in Advanced Oncotherapy dived 18.1p, or 24%, to 55.90p. “Advanced Oncotherapy is firmly of the view that Sinophi has no legal basis on which to make this termination and will take appropriate action to protect its position,” it said.

The company revealed in November that Sinophi had decided against installing two machines at two hospitals, but insisted it was still planning to fit them at other sites. That update came a few days after the Chinese firm bemoaned “delays in the proton-therapy machine delivery schedules”, adding that it did not expect any progress at its Chinese hospitals “until such time as Advanced Oncotherapy has a working prototype capable of commercialisation”.

Accounts for 2015 show the British firm has received only £161,000 from Sinophi.