The company will grant exclusive rights for the use of its ProteusPLUS technology to CGNNT and its subsidiary in the PRC
Ion Beam Applications (IBA), a provider of proton therapy solutions for cancer, has reached a licensing agreement with CGN Nuclear Technology Development (CGNNT), for the exclusive rights to its ProteusPLUS technology in China.
Under the terms of the agreement, the licencing transaction values more than €100m ($118.2m), where IBA is expected to receive an initial payment of €20m in few days, and the remaining amount as milestone payments over a period of four years.
In addition, the medical technology company is also expected to receive a stream of annual royalty revenues, based on sales of the product by CGN Dasheng in future.
The transaction value includes the licensing fee, technology support, and the sale of sub-systems for a ProteusPLUS solution and installation support, said the company.
IBA provides CGNNT and CGN Dasheng h exclusive rights to ProteusPLUS technology
Under the agreement, IBA will grant exclusive rights for the use of its ProteusPLUS technology to CGNNT and its subsidiary CGN Dasheng in the People’s Republic of China (PRC), excluding Hong Kong, Taiwan and Macau area.
IBA will retain the right to directly sell up to 5 ProteusPLUS contracts, and would provide training for CGN Dasheng’s employees to develop, produce, operate and maintain its ProteusPLUS technology.
The Chinese government’s announcement for expanding the number of proton therapy licenses from 10 to 16 is expected to boost the company’s Proton Therapy offering over coming few years.
The partnership between IBA and CGNNT is expected to combine the proton therapy technology and production capacities in China, and explore possibilities in other business lines.
The companies will work closely to enhance the product offering, marketing, sales, sourcing and clinical information.
CGNNT general manager Dongming Hu said: “We have long been impressed by the excellence of IBA’s proton therapy technology and its commitment to improving cancer care for patients.
“Proton therapy is an increasingly important modality in the treatment of cancer patients in China and this collaboration is integral to ensuring that we enable many more Chinese patients to gain access to this cutting-edge, life-saving treatment.”