KNOXVILLE, Tenn.--(BUSINESS WIRE)--Provision Asia (HK), Limited, a company organized and existing under the laws of Hong Kong, (“Provision Asia”) and a wholly-owned subsidiary of Provision Healthcare, LLC, and Shenzhen Hairong International Medical Development Co., Ltd (“Hairong International”), a company organized and existing under the laws of the People’s Republic of China and a wholly-owned subsidiary of Shenzhen Neptunus Bioengineering Co., Ltd, are pleased to announce the formation of Provision China, a Joint Venture Limited Liability company registered and doing business in the Shenzhen Qianhai free trade zone.
Provision China will develop cancer centers and proton therapy centers in China, provide consultation and support services for the design, construction, development and operation of proton therapy centers and cancer treatment centers in China (including physician and staff training, operations management support, and clinical research), distribute Proton Therapy Systems in China that are manufactured by Provision Healthcare, LLC and its affiliates, and provide service and maintenance for proton therapy systems.
Subject to Provision Asia’s limited right to enter binding agreements with other persons, the Joint Venture Company will be the exclusive distributor of the ProNova SC360 Proton Therapy System and the exclusive developer of Provision Cancer Centers or Provision Proton Therapy centers within China. The Joint Venture Company may contract with sub-distributors or agents as necessary to most effectively distribute products in China, and may work with other partners to leverage their unique strengths in the development and financing of specific proton centers or cancer centers.
The proton therapy systems distributed in China by the Joint Venture Company will be purchased from Provision Asia or its affiliate. Provision Asia and its affiliates shall also assist the Joint Venture Company in providing training, development and systems maintenance services for proton centers and/or cancer centers in China.
“The Provision China Joint Venture allows Provision Healthcare to continue to pursue our mission to make improved cancer care more accessible in China by providing ProNova Solutions advanced proton treatment systems and by developing joint venture proton centers and cancer centers,” said Dr. Terry Douglass, Chairman and CEO of Provision Healthcare.
With its extensive relationships with hospitals and healthcare providers, Hairong International will assist the Joint Venture Company in the development of proton centers and/or cancer centers within China. Subject to mutually acceptable terms, each proton center or cancer center will be developed as a subsidiary of the Joint Venture Company consisting of the Joint Venture Company and, if applicable, a physician, clinical, hospital, or other strategic partner. Each proton center or cancer center is expected to include three treatment rooms; however, one-room and two-room centers can be developed.
Governance of the individual cancer centers or proton centers will be determined by the Joint Venture Company and, if applicable, its physician, clinical, hospital, or other strategic partner. Each of the cancer centers or proton centers will enter into separate agreements with the Joint Venture Company for project development and management services with respect to the development, financing, construction, management and operation of the proton center. Each center will also enter into a separate ten year agreement with the Joint Venture Company to provide operation and maintenance services for the proton therapy system as well as a separate agreement for clinical training of the Proton Center’s clinical staff. Provision Asia and its Affiliates shall assist the Joint Venture Company in providing training, development and systems maintenance services for the proton centers and/or cancer centers developed in China.
Hairong International and Provision Healthcare, LLC will also execute a Purchase Agreement whereby Hairong International agrees to invest twenty five million United States Dollars (US$25,000,000) in Provision Healthcare, LLC through the purchase of Provision Healthcare LLC units.
“Neptunus has the whole healthcare industry chain covered from pharmaceutical development, manufacturing, wholesale and retail,” said Dr. Liu Zhanjun, CEO and Director of Neptunus Bioengineering. “By taking advantage of its extensive experience in the cancer care industry and the strong relationships with hospitals and healthcare groups in China, together with Provision’s world-class ProNova SC360 proton therapy equipment and rich experience in operating successful proton therapy centers in the United States, I believe the collaboration between Provision Healthcare and Neptunus will exert significant influence in quickly developing and making proton therapy accessible in China.”
Both agreements will be effective only after the shareholders of Shenzhen Neptunus Bioengineering Co., Ltd have approved both the investment in Provision Healthcare and the execution of the Joint Venture Agreement.
About Provision Healthcare
Provision Healthcare, LLC, (Provision) was formed in 2005 with the purpose of developing innovative healthcare solutions focused on improving patient care and clinical outcomes and developing support for research, educational, and charitable causes. Provision has developed a unique, comprehensive expertise in proton therapy that distinguishes us from other equipment suppliers and proton and cancer center developers and operators that have a much narrower focus. The combination of our unique expertise and innovative, entrepreneurial approach continues to propel Provision towards a position of industry leadership with respect to both cancer care and proton therapy.