Deltex Medical Regulatory News (DEMG)

11 Jul 2007 07:01

Deltex Medical Group PLC11 July 2007 Deltex Medical Group plc Pre-close update on the six months ended 30 June 2007 11 July 2007 - Deltex Medical Group plc ("Deltex Medical" or "Company"), theUK's leading haemodynamic monitoring company, today announces an update onprogress in the six months ended 30 June 2007. Throughout the first half of 2007 the Company made substantial progress towardsdelivering its goal of establishing the use of its CardioQ(TM) system as astandard of care in the monitoring and management of patients undergoing surgeryand in critical care. Around the world, more patients than ever before arebenefiting from being treated using the CardioQ. As a result the Company hasseen increased sales in each of its key markets. Sales for the six months ended30 June 2007 are expected to be in excess of £1.9 million, compared to£1.5 million in the corresponding period in 2006. In the USA, the world's largest medical technology market, the number of probessold each month has increased by approximately half since the start of the year.This growth is attributable to increasing clinical awareness of the importanceof active, real time management of patients' fluids and has come both fromestablished customers and a small number of new hospitals. The Directors believethat the strong sales growth rate in the USA in the six months ended 30 June2007 is the result of changes in clinical practice driven by a growing belief inthe benefits of fluid management guided by the CardioQ and does not reflect anyof the potential uplift in demand associated with the Centers for Medicare andMedicaid Services 22 May decision to reimburse doctors across the USA for usingthe CardioQ on a wide range of patients. In the Company's largest market, the UK, sales continued to grow steadily, withgrowth in sales of each of probes, monitors and maintenance contracts. In March,University College London Hospital announced its plan to implement routine useof the CardioQ as a standard of care during surgery as a core step in itsredesign of surgical care: the hospital's stated goals are to improve patientoutcomes and reduce average lengths of hospital stay by more than half. Agrowing number of other major teaching and district general hospitals across theUK are actively pursuing similar plans. The Company is delivering strong growth in both monitor and probe sales in itsInternational business, which is conducted mainly through distributors. Thenormal level of monthly probe orders from distributors is continuing to grow,with increases in standing orders from several of our key territories. Nigel Keen, Deltex Medical's chairman, commented: "The progress Deltex Medical has made in each of the USA, UK and Internationalmarkets means that we enter the second half of 2007 with increasing momentum inall our key markets. Deltex Medical has created a clear advantage in asubstantial new global market by providing proprietary technology that enablesdoctors to look after their patients better than ever before. The Company isstrongly positioned to deliver sustained growth." For further information, please contact:- Deltex Medical Group plc 01243 774 837Nigel Keen, Chairman njk@deltexmedical.comAndy Hill, Chief Executive ahill@deltexmedical.comEwan Phillips, Finance Director eap@deltexmedical.com Gavin Anderson & Company 020 7554 1400Deborah Walter dwalter@gavinanderson.co.ukRobert Speed rspeed@gavinanderson.co.uk Nominated Adviser & BrokerCharles Stanley Securities 020 7149 6000Philip Davies philip.davies@csysecurities.comRussell Cook russell.cook@csysecurities.com Notes for Editors Deltex Medical manufactures and markets the CardioQ(TM) 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 amount ofcirculating 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 for measuring 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 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(TM) is an entirely non-invasive device which uses an ultrasound probeheld 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 in a similar format and is used fortaking snapshots or monitoring over short periods. This information is provided by RNS The company news service from the London Stock Exchange