Deltex Medical Regulatory News (DEMG)

25 January 2017

Deltex Medical Group plc

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

South Korean broadens ODM reimbursement

Deltex Medical Group plc (AIM: DEMG), the global leader in Oesophageal Doppler Monitoring ("ODM"), is pleased to announce that the health authorities in South Korea have decided to increase the range of medical conditions for which they will reimburse the cost of using ODM.

The previously narrow coverage of specific conditions for hospitals to be reimbursed for use of ODM in South Korea has been significantly broadened to include all patients with unstable haemodynamics and this includes the vast majority of major and high risk surgical patients.

The South Korean reimbursement system sets the price that hospitals pay per patient for the ODM technology used. The hospital is normally reimbursed 80% of the price by the government with the remaining 20% billed to the patient.

Sales to the Company's distributor in Korea were £0.3m in 2016 (2015: £0.2m). With the broader reimbursement in place, the distributor's target is to get to end-user sales of at least 1,000 probes a month by the end of 2018 which would equate to annualised Deltex sales of over £0.6m.

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

"Deltex made good progress in South Korea in 2015 and 2016 and this reimbursement decision, which is specific to ODM, should allow our distribution partner to increase the installed base and probe consumption level during 2017. South Korea is one of the most developed markets for intraoperative fluid management in the world and our objectives are both to expand the market and increase ODM's market share."

For further information, please contact:-

Notes for Editors

Deltex Medical manufactures and markets haemodynamic monitoring technologies. Deltex Medical's ODM is the only technology to measure continuously 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. 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.

Company goal

ODM is increasingly recognised as a standard of care for patients undergoing major surgery and in critical care. The broader clinical area of haemodynamic management of which ODM is a core constituent is also 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 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.

There are over 3,200 monitors installed in hospitals around the world and around 700,000 patients have been treated to date using Deltex Medical's single patient disposable probes.