Deltex Medical Regulatory News (DEMG)

17 January 2018

Deltex Medical Group plc

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

Major new US hospital account

Deltex Medical Group plc (AIM: DEMG), the global leader in Oesophageal Doppler Monitoring ("ODM"), is pleased to announce the addition of a major new hospital in the USA.

The hospital is a University Teaching Hospital in our Mid-Atlantic sales territory and the flagship site within a six hospital healthcare system. It is ranked amongst the top ten hospitals in the USA.

The hospital evaluated ODM thoroughly in 150 patients undergoing either colorectal or urology surgery in November and December 2016. In colorectal surgery, where it had already established all other key aspects of a multi-disciplinary enhanced recovery surgical programme, it demonstrated around a 10% reduction in mean length of hospital stay. In urology surgery it demonstrated a c. 20% reduction in mean length of hospital stay. The clinicians leading the quality improvement project informed the Company that a previous evaluation of an alternative cardiac output monitoring technology to guide fluid management had, in contrast, shown an increased length of stay.

The flagship hospital has now started implementing ODM into its standard operating procedures for both colorectal and urological surgery. The clinicians leading the implementation programme have informed the Company that they expect this to lead to use of 40 to 50 probes a month; furthermore, that the system plans to introduce ODM into the two largest sister hospitals in Q2 2018 and the remaining three hospitals by Q4 2018 by which time the flagship hospital expects to have started to roll ODM usage out into other surgical disciplines. The Company is supporting the implementation from its existing resources with no additional overhead.

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

"This is a strategically important account win for Deltex in an important teaching hospital. Successful implementation through the hospital and wider system should help drive our overall US sales growth as well as providing an additional highly rated reference account.

"The results from the hospital's evaluation validate the value our ODM technology offers even in those hospitals that have the very best patient outcomes. It is noteworthy that this US hospital was able to use ODM to improve its patients' recoveries even though its starting points for lengths of stay for these types of surgery were already around half the NHS England average."

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Notes for Editors

Deltex Medical manufactures and markets haemodynamic monitoring technologies. Deltex Medical's proprietary ODM is the only technology 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. Deltex has been the only company in the enhanced haemodynamic space to build a robust and credible evidence base proving the clinical and economic benefits of its core technology, ODM which is proven to reduce complications suffered by patients after surgery and save hospitals the costs of treating those complications.

Deltex Medical's CardioQ-ODM+ platform also now provides clinicians with two further advanced haemodynamic monitoring technologies. High Definition Impedance Cardiography is an entirely non-invasive monitoring technology which creates an electrical field across the chest and measures the disruption to this field when the heart pumps blood. Pulse Pressure Waveform Analysis uses peripheral blood pressure signal analysis to give doctors information on changes in the circulation and is particularly suited to monitoring lower risk or haemodynamically stable patients.

Company goal

Haemodynamic management is now becoming widely accepted as an important major new medical modality. Consequently, the Company's focus is on maximising value from the opportunities presented as enhanced haemodynamic management is adopted into routine clinical practice around the world. The Company aims to provide clinicians with a single platform, a 'haemodynamic workstation', which offers them a range of technologies from simple to sophisticated to be deployed according to the patient's condition and skill and expertise of the user. Doing this will enable the Company to partner healthcare providers to support modern haemodynamic management across the whole hospital.

The Company is currently in the implementation phase of achieving this goal in a number of territories worldwide, operating directly in the UK, USA, Spain and Canada and through distribution arrangements in a further 30 countries.