The South Australian Health and Medical Research Institute (SAHMRI) is suing US-based ProTom International for $US32 million ($48 million) over claims of misleading and deceptive conduct related to a failed proton therapy unit project. The unit was intended to treat 700 cancer patients annually, including children and adults with rare tumours.
The project, which involved a $115 million commitment from state and federal governments, aimed to install the Southern Hemisphere's first proton therapy system at the Bragg Centre in Adelaide. SAHMRI terminated the contract in October 2024 after ProTom requested an additional $US57.2 million beyond the agreed $US49.5 million.
Court documents reveal that in January 2024, ProTom CEO Paul Tso allegedly told SAHMRI representatives in Boston that the company was not making money and could not deliver under the current contract. Tso later said the extra funding request was revised down to $25 million, citing pandemic-related cost increases.
ProTom maintains its technology is proven and that the project can be revived within 22 months if the contract is reinstated. Tso expressed disappointment over the legal action, suggesting mediation should have been pursued first.
A 2017 KPMG due diligence review had flagged concerns about ProTom's financial capacity and a high risk of delinquency. Australia currently has no proton therapy service, forcing patients to travel overseas for treatment.
The case returns to court on December 16 and is expected to take time to resolve. SAHMRI declined to comment on the ongoing litigation.
