Deltex Medical Regulatory News (DEMG)

4 December 2023

Deltex Medical Group plc

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

Commercial update

Appointment of new Non-Executive Director and other director changes

Change of auditor

The Board of Deltex Medical (AIM: DEMG) is pleased to provide an update on commercial progress and Board changes, including the appointment of a new non-executive director.

Commercial Update

In-hospital testing of the new TrueVue monitor has been on-going for the past three months and has gone to plan, generating positive feedback on the new monitor whilst confirming that the performance is equivalent or better than for the existing device. The first in market sale of the new TrueVue monitor was completed at the end of November 2023. In addition, the Company has received initial orders for new TrueVue monitors, which it expects to fulfil over the coming months. As anticipated, following the in-hospital testing some minor improvements have been made to the new device. Components are expected to be delivered to complete the next, larger scale production run over the coming weeks. It is therefore anticipated that the Group will have a strong start to the new year as larger quantities of the new TrueVue monitor are shipped.

As reported in the Interim Results statement on 18 September 2023, the Group's restructuring plan to remove c.£1.0m from the cost base has been successfully completed.

Board changes

The Board of Deltex Medical is also pleased to announce that Ben Carswell has joined the board of directors of the Company (the "Board") as a Non-Executive Director with effect from 1 December 2023.

Benjamin ("Ben") Edward Carswell, aged 49, is a seasoned business leader with experience in commercialising Software-as-a-Service ("SaaS") platforms for start-ups and established businesses. Ben is currently a non-board director at Kraken Technologies, which forms part of Octopus Energy Group. Ben was previously Chief Commercial Officer at DPR Limited and has held senior positions at Fiserv and MoPowered. Ben is not currently a director or partner of any other companies or partnerships and has not been during the last five years.

Separately, on 14 July 2023 the Company announced, amongst other matters, its intention to review the composition of the Board in the near future. In this respect, as part of the Company's ongoing efforts to realise cost savings where possible, and following a comprehensive review, the Board has concluded to reduce the number of directors on the Board. Accordingly, Julian Cazalet, Mark Wippell and Professor Tim Irish have stepped down from the Board as Non-Executive Directors, with effect from 1 December 2023. In light of the aforementioned changes, Chris Jones, currently a Non-Executive Director, will now become a Senior Independent Non-Executive Director ("SID").

Nigel Keen, Chairman of Deltex Medical, said:

"I am very pleased to welcome Ben to the Board of Deltex Medical. His extensive experience, which includes holding leadership roles in blue chip organisations, establishing international alliances and operations, implementing turn-around strategies, and launching products and services, will be a great benefit to the Company going forward.

The Board would like to offer our sincere gratitude to Julian Cazalet, Mark Wippell and Professor Tim Irish for their unequivocable support over the past years and in particular, their instrumental support during the most recent fundraising and broader restructuring. We wish them all well in their respective future endeavours."

Change of auditor

The Company also announces that the Board has approved the appointment of Cooper Parry as the Group's new external auditor following a competitive audit tender process, and that CLA Evelyn Partners Limited (formerly Nexia Smith & Williamson) has resigned as the Group's auditor.

For further information, please contact:

Notes for Editors

Deltex Medical's technology

Deltex Medical's TrueVue System uses proprietary haemodynamic monitoring technology to assist clinicians to improve outcomes for patients as well as increase throughput and capacity for hospitals.

Deltex Medical has invested over the long term to build a unique body of peer-reviewed, published evidence from a substantial number of trials carried out around the world. These studies demonstrate statistically significant improvements in clinical outcomes providing benefits both to patients and to the hospital systems by increasing patient throughput and expanding hospital capacity.

The Group's flagship, world-leading, ultrasound-based oesophageal Doppler monitoring ("ODM") is supported by 24 randomised control trials conducted on anaesthetised patients. As a result, the primary application for ODM is focussed on guiding therapy for patients undergoing elective surgery, although sedated patients in intensive care are still an important part of our business. The Group's new, next generation monitor makes the use of the ODM technology more intuitive and provides augmented data on the status of each patient.

Deltex Medical's engineers and scientists carried out successful research in conjunction with the UK's National Physical Laboratory ("NPL"), which has enabled the Group's 'gold standard' ODM technology to be extended and developed so that it can be used completely non-invasively. This will significantly expand the application of Deltex Medical's technology to non-sedated patients. This new technological enhancement, which will be released on the new next generation monitor, will substantially increase the addressable market for the Group's haemodynamic monitoring technologies and is complementary to the long-established ODM evidence base.

Deltex Medical's new non-invasive technology has potential applications for use in a number of healthcare settings, including:

§ Accident & Emergency for the rapid triage of patients, including the detection and diagnosis of sepsis;

§ in general wards to help facilitate a real-time, data-driven treatment regime for patients whose condition might deteriorate rapidly; and

§ in critical care units to allow regular monitoring of patients post-surgery who are no longer sedated or intubated.

One of the key opportunities for the Group is positioning this new, non-invasive technology for use throughout the hospital. Deltex Medical's haemodynamic monitoring technologies provide clinicians with beat-to-beat real-time information on a patient's circulating blood volume and heart function. This information is critical to enable clinicians to optimise both fluid and drug delivery to patients.

Deltex Medical's business model is to drive the recurring revenues associated with the sale of single-use disposable ODM probes which are used in the TrueVue System and to complement these revenues with a new incremental revenue stream to be derived from the Group's new non-invasive technology.

Both the existing single-use ODM probe and the new, non-invasive device will connect to the same, next generation monitor launched in July 2023. Monitors are sold or, due to hospitals' often protracted procurement times for capital items, loaned in order to encourage faster adoption of the Group's technology.

Deltex Medical's customers

The principal users of Deltex Medical's products are currently anaesthetists working in a hospital's operating theatre and intensivists working in ICUs. This customer profile will change as the Group's new non-invasive technology is adopted by the market. In the UK the Group sells directly to the NHS. In the USA the Group sells directly to a range of hospital systems. The Group also sells through distributors in more than 40 countries in the European Union, Asia and the Americas.

Deltex Medical's objective

To see the adoption of Deltex Medical's next generation TrueVue System, comprising both minimally invasive and non-invasive technologies, as the standard of care in haemodynamic monitoring for all patients from new-born to adult, awake or anaesthetised, across all hospital settings globally.

For further information please go to www.deltexmedical.com