Deltex Medical Regulatory News (DEMG)

7 Feb 2006 07:01

Deltex Medical Group PLC07 February 2006 Deltex Medical Group plc Acquisition of TECO(TM) 7 February 2006 Deltex Medical Group plc ('Deltex Medical' or the 'Company'),the AIM listed haemodynamic monitoring company, today announces that it hasacquired the TECO oesophageal Doppler monitor business from Medicina Limited foran undisclosed sum. Medicina Limited is a British medical device company focused on marketingenteral feeding equipment. Since the early 1990s it has developed and marketedan oesophageal Doppler monitor system, the TECO. The TECO monitor uses are-usable ultrasound probe, which is covered by a disposable single use sheath.Up to three hundred TECO monitors have been installed in hospitals around theworld, with the largest bases established in Ireland, China, the UK and India. Deltex Medical has agreed to acquire the intellectual property rights to theTECO system together with all stocks of TECO devices and accessories. To meetthe cost of the acquisition and to provide finance for the subsequentintegration of the TECO system, the Company has placed with institutional andother investors 1,030,000 new ordinary shares of 1p each at 20p per share toraise £200,000 of cash after expenses. Application will be made for the newshares to be traded on AIM and it is expected that dealings will commence on 14February 2006. Following the issue of these new shares the Company has a totalof 74,149,216 ordinary shares in issue. Deltex Medical's chairman, Nigel Keen, commented: "The acquisition of TECO will allow us to integrate the best features of theTECO system into the next generation of CardioQ monitors and opens upopportunities to convert the TECO installed base to CardioQs in a number ofmarkets. "In addition, the acquisition further strengthens our intellectual propertyportfolio and consolidates our position in the growing market for haemodynamicoptimisation." For further information, please contact:- Deltex Medical Group plc 01243 774 837Nigel Keen, Chairman nigel.keen@deltexmedical.comAndy Hill, Chief Executive andy.hill@deltexmedical.comEwan Phillips, Finance Director ewan.phillips@deltexmedical.com Financial DynamicsDavid Yates david.Yates@fd.com 0207 831 3113John Gilbert john.gilbert@fd.com Notes for Editors Deltex Medical manufactures and markets the CardioQ monitor, which usesdisposable ultra-sound probes inserted into the oesophagus to determine theamount of blood being pumped around the body - 'circulating blood volume'.Reduced circulating blood volume is known as hypovolaemia, which leads toinsufficient oxygen being delivered to the organs. This causes medicalcomplications including peripheral and major organ failure which can lead todeath. Hypovolaemia, which is akin to severe dehydration, affects virtuallyevery patient having surgery because of the combined effects of pre-operativestarvation, the impact of the anaesthetic agents and trauma from the surgeryitself. Using fluids and drugs, guided by the CardioQ, to optimise the amountof circulating blood significantly reduces post-operative complications allowingpatients to make a faster, more complete recovery and return home earlier. The CardioQ incorporates the Company's proprietary software and a smalldiameter, easy-to-use, minimally invasive, disposable oesophageal probe that isused for transmitting and receiving an ultra-sound signal. By using thistechnology, the CardioQ provides clinicians with the ability to haemodynamicallyoptimise critically ill patients and those undergoing routine moderate to majorsurgery through the controlled administration of fluid and drugs. Haemodynamicoptimisation has been scientifically proven to improve the speed and quality ofpatient recovery and reduce hospital stay. There are already over 1,250 CardioQs currently in use in hospitals worldwideand distribution arrangements are in place in over 30 countries. In addition,there are currently more than 90 clinical publications on the use of the CardioQwhich have repeatedly:- • validated the results of the Monitor against known standards formeasuring 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 healthand economic benefits by helping to reduce post-operative complications andlength of hospital stays by an average of 30 to 40 per cent for a wide range ofpatients. This information is provided by RNS The company news service from the London Stock Exchange