Concord Medical Announces Obtaining Large Medical Equipment Procurement License for Its Proton Therapy Equipment

Rhea-AI Summary

Concord Medical Services Holdings (NYSE: CCM) has announced that its subsidiary, Guangzhou Concord Cancer Center, has obtained a large medical equipment procurement license for its proton therapy equipment. This development follows the completion of equipment installation in September 2020 and the commencement of clinical trials in November 2022. The license, granted by the National Health Commission of the PRC on September 14, 2024, allows Guangzhou Hospital to offer proton therapy treatment services.

Additionally, Concord Healthcare Group Co., , a subsidiary of Concord Medical listed on the Hong Kong Stock Exchange (2453.HK), made a similar announcement on September 15, 2024. This news marks a significant step for Concord Medical in expanding its cancer treatment services in China.

Positive

• Obtained large medical equipment procurement license for proton therapy equipment
• Proton therapy treatment services to be offered soon at Guangzhou Concord Cancer Center
• Successful completion of equipment installation and clinical trials

Negative

• None.

Insights

Medical Research Analyst

The obtainment of the large medical equipment procurement license for proton therapy equipment by Guangzhou Concord Cancer Center marks a significant milestone in expanding advanced cancer treatment options in China. Proton therapy, known for its precision in targeting tumors while minimizing damage to surrounding healthy tissues, could potentially improve patient outcomes and quality of life.

However, it's important to note that while the equipment installation was completed in 2020 and clinical trials began in 2022, the delay in obtaining the license might have impacted the center's ability to generate revenue from this service. The timeline for commencing proton therapy services "at earliest convenience" remains vague, suggesting possible further delays in monetization. Investors should closely monitor the actual launch date and initial patient volumes to gauge the impact on Concord Medical's financial performance.

Financial Analyst

The acquisition of the proton therapy equipment license is a positive development for Concord Medical, potentially opening up a new revenue stream. However, the financial impact remains uncertain without details on pricing strategy, expected patient volumes, or projected revenue. The substantial investment in proton therapy equipment and the prolonged period before obtaining the license suggest significant upfront costs and delayed returns.

Investors should consider the capital expenditure involved in this project and its impact on the company's balance sheet. Additionally, the recent listing of Concord Healthcare on the HKSE could provide improved access to capital, which may be important for funding the ongoing operations and expansion of the proton therapy center. The market's reaction to this news will likely depend on Concord Medical's ability to effectively monetize this new capability and demonstrate a clear path to profitability for the Guangzhou Hospital.

BEIJING, Sept. 16, 2024 /PRNewswire/ -- Concord Medical Services Holdings Limited ("Concord Medical" or the "Company") (NYSE: CCM), a healthcare provider specialized in cancer treatment, research, education and prevention in China, today announced that Guangzhou Concord Cancer Center ("Guangzhou Hospital"), a PRC subsidiary of the Company offering comprehensive cancer care services, has obtained the large medical equipment procurement license (the "License") for its proton equipment.

As previously disclosed in the Company's annual report for the fiscal year ended December 31, 2023, Guangzhou Hospital has completed the installment of the proton equipment in September 2020 and commenced its clinical trial in November 2022. Guangzhou Hospital has also subsequently submitted the application for the License for such proton equipment, planning to offer proton therapy treatment services at its proton center. On September 14, 2024, the National Health Commission of the PRC announced to grant approval to Guangzhou Hospital's application for the License. Guangzhou Hospital plans to start its proton therapy treatment services at its earliest convenience after necessary preparations.

Concord Healthcare Group Co., Ltd. ("Concord Healthcare"), a subsidiary of the Company listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "HKSE") under the stock code 2453.HK, also announced on September 15, 2024 that Guangzhou Hospital had obtained the License. The Company previously announced the listing of Concord Healthcare's H shares on the HKSE on January 9, 2024. The information related to Concord Healthcare's Transactions on the HKSE is accessible through the HKSE's website at www.hkexnews.hk.

About Concord Medical

Concord Medical Services Holdings Limited is a healthcare provider featuring a full cycle of premium oncology services including cancer diagnosis, treatment, education and prevention. The Company focuses on providing multidisciplinary cancer care in all aspects of oncology healthcare services in its cancer hospitals and equipping them with technologically advanced equipment such as the state-of-the-art proton therapy system. The Company is striving to improve the quality and accessibility of cancer care through its network of self-owned cancer hospitals and clinics as well as partnered hospitals across China. For more information, please see http://ir.ccm.cn.

About Concord Healthcare

Concord Healthcare is an oncology healthcare provider in China. Concord Healthcare serves both cancer patients through self-owned medical institutions and third-party medical institutions through medical equipment, software and related services. In its self-owned medical institutions, Concord Healthcare provides a full spectrum of oncology healthcare services to cancer patients across the entire care continuum, leveraging its multidisciplinary team specialists and diagnosis and treatment capabilities featuring precision radiation therapy. Through its medical equipment, software and related services, Concord Healthcare serves a widespread network of enterprise customers, primarily hospitals, with integrated oncology-related services, including primarily sales and installing of medical equipment and software, management and technical support, and operating lease.

Safe Harbor Statement

This announcement contains forward-looking statements. These forward-looking statements can be identified by words or phrases such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions. Forward-looking statements are inherently subject to uncertainties and contingencies beyond the Company's control and based upon premises with respect to future business decisions, which are subject to change. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

View original content:https://www.prnewswire.com/news-releases/concord-medical-announces-obtaining-large-medical-equipment-procurement-license-for-its-proton-therapy-equipment-302248827.html

SOURCE Concord Medical Services Holdings Limited

FAQ

What license did Concord Medical (CCM) obtain for its proton therapy equipment?

Concord Medical (CCM) obtained a large medical equipment procurement license for its proton therapy equipment at Guangzhou Concord Cancer Center.

When did Guangzhou Concord Cancer Center complete the installation of its proton equipment?

Guangzhou Concord Cancer Center completed the installation of its proton equipment in September 2020.

When did Guangzhou Concord Cancer Center start clinical trials for its proton therapy?

Guangzhou Concord Cancer Center commenced clinical trials for its proton therapy in November 2022.

When was Concord Medical's (CCM) proton therapy equipment license approved?

The National Health Commission of the PRC approved Concord Medical's (CCM) proton therapy equipment license on September 14, 2024.