Deltex Medical Group PLC
11 July 2007
Deltex Medical Group plc
Pre-close update on the six months ended 30 June 2007
11 July 2007 - Deltex Medical Group plc ('Deltex Medical' or 'Company'), the
UK's leading haemodynamic monitoring company, today announces an update on
progress in the six months ended 30 June 2007.
Throughout the first half of 2007 the Company made substantial progress towards
delivering its goal of establishing the use of its CardioQ(TM) system as a
standard of care in the monitoring and management of patients undergoing surgery
and in critical care. Around the world, more patients than ever before are
benefiting from being treated using the CardioQ. As a result the Company has
seen increased sales in each of its key markets. Sales for the six months ended
30 June 2007 are expected to be in excess of £1.9 million, compared to
£1.5 million in the corresponding period in 2006.
In the USA, the world's largest medical technology market, the number of probes
sold each month has increased by approximately half since the start of the year.
This growth is attributable to increasing clinical awareness of the importance
of active, real time management of patients' fluids and has come both from
established customers and a small number of new hospitals. The Directors believe
that the strong sales growth rate in the USA in the six months ended 30 June
2007 is the result of changes in clinical practice driven by a growing belief in
the benefits of fluid management guided by the CardioQ and does not reflect any
of the potential uplift in demand associated with the Centers for Medicare and
Medicaid Services 22 May decision to reimburse doctors across the USA for using
the CardioQ on a wide range of patients.
In the Company's largest market, the UK, sales continued to grow steadily, with
growth in sales of each of probes, monitors and maintenance contracts. In March,
University College London Hospital announced its plan to implement routine use
of the CardioQ as a standard of care during surgery as a core step in its
redesign of surgical care: the hospital's stated goals are to improve patient
outcomes and reduce average lengths of hospital stay by more than half. A
growing number of other major teaching and district general hospitals across the
UK are actively pursuing similar plans.
The Company is delivering strong growth in both monitor and probe sales in its
International business, which is conducted mainly through distributors. The
normal level of monthly probe orders from distributors is continuing to grow,
with increases in standing orders from several of our key territories.
Nigel Keen, Deltex Medical's chairman, commented:
'The progress Deltex Medical has made in each of the USA, UK and International
markets means that we enter the second half of 2007 with increasing momentum in
all our key markets. Deltex Medical has created a clear advantage in a
substantial new global market by providing proprietary technology that enables
doctors to look after their patients better than ever before. The Company is
strongly positioned to deliver sustained growth.'
For further information, please contact:-
Deltex Medical Group plc 01243 774 837
Nigel Keen, Chairman njk@deltexmedical.com
Andy Hill, Chief Executive ahill@deltexmedical.com
Ewan Phillips, Finance Director eap@deltexmedical.com
Gavin Anderson & Company 020 7554 1400
Deborah Walter dwalter@gavinanderson.co.uk
Robert Speed rspeed@gavinanderson.co.uk
Nominated Adviser & Broker
Charles Stanley Securities 020 7149 6000
Philip Davies philip.davies@csysecurities.com
Russell Cook russell.cook@csysecurities.com
Notes for Editors
Deltex Medical manufactures and markets the CardioQ(TM) monitor, which uses
disposable ultra-sound probes inserted into the oesophagus to determine the
amount of blood being pumped around the body - 'circulating blood volume'.
Reduced circulating blood volume is known as hypovolaemia, which leads to
insufficient oxygen being delivered to the organs. This causes medical
complications including peripheral and major organ failure which can lead to
death. Hypovolaemia, which is akin to severe dehydration, affects virtually
every patient having surgery because of the combined effects of pre-operative
starvation, the impact of the anaesthetic agents and trauma from the surgery
itself. Using fluids and drugs, guided by the CardioQ, to optimise the amount of
circulating blood significantly reduces post-operative complications allowing
patients to make a faster, more complete recovery and return home earlier.
The CardioQ incorporates the Company's proprietary software and a small
diameter, easy-to-use, minimally invasive, disposable oesophageal probe that is
used for transmitting and receiving an ultra-sound signal. By using this
technology, the CardioQ provides clinicians with the ability to haemodynamically
optimise critically ill patients and those undergoing routine moderate to major
surgery through the controlled administration of fluid and drugs. Haemodynamic
optimisation has been scientifically proven to improve the speed and quality of
patient recovery and reduce hospital stay.
There are already over 1,250 CardioQs currently in use in hospitals worldwide
and distribution arrangements are in place in over 30 countries. In addition,
there are currently more than 90 clinical publications on the use of the CardioQ
which have repeatedly:-
•Validated the results of the Monitor against known standards for
measuring cardiac output, demonstrating that the technology works
•Proved that the CardioQ works in a wide range of surgical procedures
•Demonstrated that the Company's technology provides significant health
and economic benefits by helping to reduce post-operative complications and
length of hospital stays by an average of 30 to 40 per cent for a wide range
of patients.
The SupraQ(TM) is an entirely non-invasive device which uses an ultrasound probe
held at the base of the patient's neck to track the flow of blood in the aorta;
it presents the same data as the CardioQ in a similar format and is used for
taking snapshots or monitoring over short periods.
This information is provided by RNS
The company news service from the London Stock Exchange
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