(Reuters) – Ion Beam Applications, whose proton beam machines treat cancer, will continue operating in Russia, as it considers halting treatment of cancer patients as unethical, the Belgian medical equipment maker’s CEO told Reuters on Thursday.
IBA has limited exposure to Russia, where it has one contract and employs between 15 and 20 people. In February, the company signed a 40 million euro deal with Russia’s SOGAZ Insurance to install its ProteusONE proton therapy unit in Saint Petersburg, while its centre in Dimitrovgrad began treating patients in late 2019.
“From an ethical standpoint, we have decided to continue operations in Russia,” CEO Olivier Legrain said, adding that halting its oncology services in the country would be “inappropriate” due to the negative impact on cancer patients.
The company has no employees in Ukraine, the company’s finance chief Soumya Chandramouli said.
Legrain said the company was monitoring raw material price inflation for products such as steel and copper. He said the uncertainties around the subject made it impossible for the company to provide any guidance at the moment.
KBC analyst Michiel Declercq wrote in a note to clients, that lack of short and long-term guidance remained an issue for now. “We are confident that profitability will further increase in 2022.”
IBA’s shares were down 1.1% at 1204 GMT.
Chandramouli also flagged plans to raise prices for its products and said the company had “some level of inventory.”
IBA’s main operations have otherwise not been materially affected by Russia’s Ukraine invasion, IBA said in its earnings statement. The company said it was too early to make definitive conclusions about the impact, but pointed to inflation and possible supply chain disruptions.
The company reported an 88% year-on-year drop in 2021 annual net profit to 3.9 million euros ($4.29 million).
Chandramouli attributed the difference to the tax impact in 2021, as well as a large contract signed with China’s CGN Nuclear Technology Development in 2020 which boosted revenues.
($1 = 0.9100 euros)
(Reporting by Olivier Sorgho; Editing by Clarence Fernandez and Jane Merriman)
