Last checked at 20 Jul 2009 07:00
Deltex Medical Group plc
Pre-close update on the six months ended 30 June 2009
20 July 2009 - Deltex Medical Group plc ("Deltex Medical" or "Company"), the global leader in oesophageal Doppler monitoring ("ODM"), today announces an update on progress in the six months ended 30 June 2009.
Throughout the first half of 2009 the Company continued to make substantial progress towards delivering its goal of establishing the use of its CardioQ-ODM™ system as a standard of care in the monitoring and management of patients undergoing surgery and in critical care. Sales in the majority of the Company's markets are broadly in line with expectations and the Company expects sales for the six months ended 30 June 2009 to be approximately £2.6 million which is 5% higher than in the first half of 2008.
In the Company's largest market, the UK, probe orders were received from the highest ever number of hospitals, circa 200, although overall volumes were flat, whilst fiscal restraint in many NHS Trusts also resulted in a modest decline in monitor volumes from the record levels achieved in 2008.
In the USA, the Company has continued to make good progress notably in Southern California, where it has its greatest concentration of resources. A number of health insurers in the USA are now making reimbursement payments regularly and consistently. Although it has taken longer than anticipated for some providers to initiate reimbursement. Where US doctors are being paid for using the CardioQ-ODM, we have, as expected, seen increases in probe sales.
Elsewhere, the company has continued to make good progress in its International business, which is conducted mainly through distributors, although sales were held back in Spain following delays in setting up a major government-led assessment of CardioQ-ODM, with a projected sales value to the Company in excess of £250,000, and deferral of a large international order.
Whilst the timing of a small number of larger transactions can significantly impact the reported growth rates in any given period, the Board are satisfied with the market development and underlying momentum in all those markets where the Company is focused on delivering growth. Costs remain under tight control and the Board is confident that the Company is on track to achieve its objective of having passed the cash break-even point as it goes into 2010.
Nigel Keen, Deltex Medical's chairman, commented:
"Deltex Medical has maintained its momentum in all key markets while continuing to position itself for sustainable growth over a prolonged period. The current global economic climate means developed healthcare systems are more than ever having to actively seek to prioritise investment in new technologies and processes that both improve quality of care and reduce the cost of delivering it. Deltex Medical has created a clear advantage in a substantial new global market by providing proprietary technology that enables doctors to look after their patients better than ever before."
For further information, please contact:-
Deltex Medical Group plc 01243 774 837
Nigel Keen, Chairman njk@deltexmedical.com
Andy Hill, Chief Executive ahill@deltexmedical.com
Ewan Phillips, Finance Director eap@deltexmedical.com
Nominated Adviser & Broker
Arden Partners plc 020 7398 1600
Christopher Hardie chris.hardie@arden-partners.com
Matthew Armitt matthew.armitt@arden-partners.com
Kreab Gavin Anderson 020 7554 1400
Deborah Walter dwalter@kreabgavinanderson.com
Robert Speed rspeed@kreabgavinanderson.com
Notes for Editors
Deltex Medical manufactures and markets the CardioQ-ODM™ monitor, which uses disposable ultra-sound probes inserted into the oesophagus to determine the amount of blood being pumped around the body - 'circulating blood volume'. Reduced circulating blood volume is known as hypovolaemia, which leads to insufficient oxygen being delivered to the organs. This causes medical complications including peripheral and major organ failure which can lead to death. Hypovolaemia, which is akin to severe dehydration, affects virtually every patient having surgery because of the combined effects of pre-operative starvation, the impact of the anaesthetic agents and trauma from the surgery itself. Using fluids and drugs, guided by the CardioQ-ODM, to optimise the amount of circulating blood significantly reduces post-operative complications allowing patients to make a faster, more complete recovery and return home earlier.
The CardioQ-ODM incorporates the Company's proprietary software and a small diameter, easy-to-use, minimally invasive, disposable oesophageal probe that is used for transmitting and receiving an ultra-sound signal. By using this technology, the CardioQ-ODM provides clinicians with the ability to haemodynamically optimise critically ill patients and those undergoing routine moderate to major surgery through the controlled administration of fluid and drugs. Haemodynamic optimisation has been scientifically proven to improve the speed and quality of patient recovery and reduce hospital stay.
There are already over 1,500 CardioQ-ODMs currently in use in hospitals worldwide and distribution arrangements are in place in over 30 countries. In addition, there are currently more than 100 clinical publications on the use of the CardioQ-ODM which have repeatedly:-
Validated the results of the Monitor against known standards for measuring cardiac output, demonstrating that the technology works
Proved that the CardioQ-ODM works in a wide range of surgical procedures
Demonstrated that the Company's technology provides significant health and economic benefits by helping to reduce post-operative complications and length of hospital stays by an average of 30 to 40 per cent for a wide range of patients.
The SupraQ™ is an entirely non-invasive device which uses an ultrasound probe held at the base of the patient's neck to track the flow of blood in the aorta; it presents the same data as the CardioQ-ODM in a similar format and is used for taking snapshots or monitoring over short periods.