Deltex Medical sign new exclusive deal with CASMED

RNS Number : 4710C

Deltex Medical Group PLC

19 January 2015

 

19 January 2015

Deltex Medical Group plc

("Deltex Medical", "the Company" or "the Group")

Deltex Medical enters UK cerebral oximetry monitoring market through exclusive distribution deal with CASMED

19 January 2015 - Deltex Medical Group plc (LSE-AIM: DEMG), the global leader in oesophageal Doppler monitoring ("ODM"), announces that it has been appointed exclusive UK distributor of CAS Medical Systems Inc's (NASDAQ: CASM) FORE-SIGHT cerebral oximeter monitors.

UK hospitals purchased c.£0.2m of FORE-SIGHT products in 2014 predominantly used in adult and paediatric cardiac surgery. The current cerebral oximetry market in the UK is estimated to be in excess of £1 million pa with opportunities for growth across other types of modern major surgery in which oxygen saturation of the brain is at risk. Approximately two-thirds of CASMED's growth in its home market, the US, throughout 2014 has come from replacing the previously established but out-dated market leader.

The distribution agreement covers both the UK and Ireland and is effective from 1 January 2015 with initial stocks and sales team training being delivered this week.

Thomas M Patton, President and Chief Executive Officer of CASMED commented:

"Deltex Medical and CASMED have a shared commitment to Level 1 scientific evidence and its role in sales, marketing and patient care.  Using this approach Deltex has become the leader in hemodynamic monitoring across the UK, and we look forward to their past success benefitting our FORE-SIGHT cerebral oximeter monitors in the licensed geographies.  With a sales channel to over 90% of major UK hospitals supported by a full national team of sales representatives and clinical support personnel, Deltex has excellent penetration and relationships in hospitals that are likely users of FORE-SIGHT."

Ewan Phillips, Deltex Medical's Chief Executive, commented:

"Cerebral oximetry is a complementary technology to our haemodynamic monitoring products and we are delighted to be able to sell the FORE-SIGHT systems which, based on our market research and technical due diligence, we believe to be best in class."

For further information, please contact:-

Deltex Medical Group plc	01243 774 837 [e-mail]
Nigel Keen, Chairman
Ewan Phillips, Chief Executive
Paul Mitchell, Finance Director
Nominated Adviser & Broker
Arden Partners plc	020 7614 5900
Chris Hardie
Joint Broker
Zeus Capital Limited	020 7533 7727
Dominic Wilson
John Goold
Financial Public Relations
Newgate Threadneedle	020 7653 9850
Tim Thompson
Heather Armstrong

Notes for Editors

About CASMED

CASMED is a leading developer and manufacturer of medical devices for non-invasive patient monitoring. The Company's FORE-SIGHT^® Absolute Cerebral Oximeter provides a highly accurate, non-invasive, continuous measurement of absolute cerebral tissue oxygen saturation.  Direct monitoring of tissue oxygenation provides a superior and powerful tool to alert clinicians to otherwise unrecognized and dangerously low levels of oxygenation of the brain and other tissues, thereby allowing them to intervene appropriately in the care of their patients. In addition to FORE-SIGHT Oximeters and accessories, the Company provides a line of bedside patient vital signs monitoring products, proprietary non-invasive blood pressure monitoring solutions for OEM use, neonatal intensive care supplies, and service. CASMED products are designed to provide unique monitoring solutions that are vital to patient care.  For more information regarding CASMED, visit the Company's website at www.casmed.com.

About Deltex Medical

Deltex Medical manufactures and markets CardioQ-ODMÔ Oesophageal Doppler Monitoring ('ODM') systems. ODM is the only therapy to measure blood flow in the central circulation in real time. Minimally invasive, easy to set up and quick to focus, the technology generates a low-frequency ultrasound signal, which is highly sensitive to changes in flow and measures them immediately. Randomised, controlled trials using Doppler have demonstrated that early fluid management intervention will reduce post-operative complications, reduce intensive care admissions, and reduce the length of hospital stay.

The CardioQ-ODM has two distinct established clinical applications: firstly, to guide fluid management during surgery and secondly, to monitor cardiac output in critical care settings.

Surgical market

In March 2011 the National Institute for Health & Clinical Excellence ('NICE') recommended that CardioQ-ODM be considered for use in patients undergoing major and high risk surgery and in high risk patients undergoing intermediate risk surgery. NICE estimated the applicable number of such patients in the NHS in England alone to be over 800,000 each year. CardioQ-ODM has been shown to be effective in both elective and emergency surgery and with both general and regional anaesthetics. This recommendation was specific to CardioQ-ODM and was based on the robust evidence base that supports its use.

Subsequent to the NICE guidance, the NHS in England announced its selection of ODM as a high impact innovation to be rolled out across the system fully, at pace and scale.

The NICE evaluation and recommendation confirms that the potential global market for CardioQ-ODM in surgery includes tens of millions of patients, even if confined to developed health economies: the most conservative estimate of the potential value of the market opportunity Deltex Medical has created is in excess of £1 billion per annum. The Company's core focus is on building market leading positions in this surgical market, both geographically and by type of surgery.

Critical care market

In critical care settings, well-equipped hospitals will often have more than one cardiac output monitoring technology available. In this environment, ODM's strengths are that it is quick to set up, easy to use, safe, low cost and the ideal technology for a patient in crisis requiring rapid or frequent intervention. The potential market for cardiac output monitoring in critical care is a fraction of the size of that for intra-operative fluid management.

Through the 2012 launch of the CardioQ-ODM+, Deltex Medical has added the Pulse Pressure Waveform Analysis ('PPWA') approach to monitoring cardiac output to ODM functionality. Doing this has improved Deltex Medical's offer for monitoring applications as well as providing doctors and nurses with a choice of clinical strategies appropriate to individual patients in different clinical settings.

Company goal

Our goal is to make oesophageal Doppler monitoring (ODM) a standard of care for patients in both these markets. We believe that, in most modern health systems, it is essential to have a robust evidence base of both clinical benefit and cost effectiveness in order to achieve system-wide adoption of a new medical technology. Deltex Medical is one of the very first medical technology companies to have completed the investment necessary to build such an evidence base: as a result, use of ODM during surgery has the proven potential to deliver both clinical and economic benefits that are material at each of patient, hospital and system level.

The Company is currently in the implementation phase of achieving this goal in a number of territories worldwide and there are already over 3,000 CardioQ-ODM systems in use in hospitals worldwide. Distribution arrangements are in place in over 30 countries.

 

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