ONCOlog receives breakthrough order for SEK 9 million

LinkMed’s portfolio company ONCOlog Medical, as subcontractor to the Belgian company IBA, will supply a new patient logistics system to the proton therapy clinic being established at the University Hospital of Essen, Germany. The order is worth SEK 9 million.

“That IBA has selected ONCOlog Medical’s patient logistics system for their first European proton clinic is confirmation that the products we have developed for this industry are world-class,” says Hans Dahlin, CEO ONCOlog Medical. “It confirms that our endeavors are right on target – both in terms of timing and quality.”

The order is for the patient logistics system PatLog. PatLog increases the quality of care and the cost effectiveness of proton therapy clinics, where a high flow of patients is required to cover large investment costs.

The order covers the primary equipment. Service and support is being procured at a later stage. ONCOlog Medical estimates that the aftermarket related to these type of systems over a 15-year life cycle is in line with the order value. The clinic in Essen will start operations in mid 2009.

The order is a result of the partnership agreement that ONCOlog Medical entered into at the beginning of May 2007 with IBA. Under the terms of the agreement, ONCOlog Medical has been selected as the exclusive supplier of patient logistics systems for the proton therapy clinics delivered by IBA. Over a ten-year period, IBA aims to achieve 50 percent of the global market share of proton centers, entailing 5-7 centers per year. Negotiations for other proton therapy centers in Europe are currently ongoing, one of which is in Sweden. Procurement decisions regarding 3-5 of them are expected to be made in 2007.

Today, there are approximately 20 major proton therapy clinics worldwide, and the technology is advancing rapidly. In contrast to regular radiotherapy, treatment with proton and particle therapy such as carbon ions, makes it possible to optimize the radiation dosage by directing it at the actual tumor cells and lowering the risk of damaging the surrounding healthy tissue.

LinkMed’s ownership stake in ONCOlog Medical is 48 percent.