Deltex Medical Regulatory News (DEMG)

5 Jan 2005 11:19

Deltex Medical Group PLC05 January 2005 Deltex Medical Group plc Update on trading for the year ended 31 December 2004 5 January 2005: Deltex Medical Group plc ('Deltex Medical' or the 'Company'),the AIM listed haemodynamic monitoring company, today announces an update onprogress in the year ended 31 December 2004. As anticipated in the trading update issued on 17 December 2004, negotiationswith the 14 hospitals in the UK NHS which are planning to implement routine,wide-scale use of the Company's products are still ongoing and were notconcluded prior to the year end. As a result, the Directors anticipate thatsales for the year will be below market expectations at approximately £2.5million compared to £3.1 million in 2003. The Company expects to reach asuccessful conclusion with the majority of the 14 hospitals in the comingmonths. Discussions with other hospitals, as also outlined in the 17 Decemberannouncement, are progressing as expected. During 2004 the Company made significant progress in communicating the clinical,economic and efficiency benefits of using its CardioQ(TM) system to manage thefluid status of patients undergoing moderate and major risk surgery. Of keyimportance was the management-led audit undertaken at the Medway MaritimeHospital NHS Trust ('Medway') demonstrating that routine use of the CardioQcould substantially reduce average length of hospital stay across a broad rangeof surgical procedures. The Medway audit provides the information required toeliminate cost as the perceived objection to wide-scale, routine use of CardioQin the UK National Health Service ('NHS') as a standard of care. The net cash position at the end of the year was £1,101,000. The Directorsbelieve the current level of cash is sufficient to see the Company toprofitability. Nigel Keen, Deltex Medical's Chairman, commented: "The Company has achieved great progress in developing and communicating its keymarketing messages, however, sales have been slower than anticipated. In largepart I believe this reflects the complexity of the decision-making processinherent in healthcare systems across the world and especially in the UK NHS,where wide-ranging and fundamental changes in funding are currently beingimplemented. "The high level of support from both doctors and hospital administrators in manycountries where the CardioQ system is sold leads me to believe that the Companyis well positioned to make haemodynamic optimisation using its products astandard of care in key markets." For further information, please contact:- Deltex Medical Group plc 01243 774 837Nigel Keen, Chairman nigel.keen@deltexmedical.comAndy Hill, Chief Executive andy.hill@deltexmedical.comEwan Phillips, Finance Director ewan.phillips@deltexmedical.com Financial Dynamics 0207 831 3113David Yates david.Yates@fd.comLucy Briggs lucy.briggs@fd.com Notes for Editors Deltex Medical manufactures and markets the CardioQ 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 amountof circulating 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 formeasuring 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 healthand economic benefits by helping to reduce post-operative complications andlength of hospital stays by an average of 30 to 40 per cent for a wide range ofpatients. This information is provided by RNS The company news service from the London Stock Exchange