REG - Deltex Med Grp PLC - Commercial update, board changes & new auditor

Deltex MedicalAnnouncement

04/12/2023 07:00

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RNS Number : 4842V  Deltex Medical Group PLC  04 December 2023

 

4 December 2023

Deltex Medical Group plc

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

 

Commercial update

Appointment of new Non-Executive Director and other director changes

Change of auditor

 

The Board of Deltex Medical (AIM: DEMG) is pleased to provide an update on
commercial progress and Board changes, including the appointment of a new
non-executive director.

 

Commercial Update

 

In-hospital testing of the new TrueVue monitor has been on-going for the
past three months and has gone to plan, generating positive feedback on
the new monitor whilst confirming that the performance is equivalent or better
than for the existing device. The first in market sale of the new TrueVue
monitor was completed at the end of November 2023. In addition, the Company
has received initial orders for new TrueVue monitors, which it expects to
fulfil over the coming months. As anticipated, following the in-hospital
testing some minor improvements have been made to the new device.
Components are expected to be delivered to complete the next, larger scale
production run over the coming weeks. It is therefore anticipated that the
Group will have a strong start to the new year as larger quantities of
the new TrueVue monitor are shipped.

 

As reported in the Interim Results statement on 18 September 2023, the Group's
restructuring plan to remove c.£1.0m from the cost base has been successfully
completed.

 

Board changes

 

The Board of Deltex Medical is also pleased to announce that Ben Carswell has
joined the board of directors of the Company (the "Board") as a Non-Executive
Director with effect from 1 December 2023.

 

Benjamin ("Ben") Edward Carswell, aged 49, is a seasoned business leader with
experience in commercialising Software-as-a-Service ("SaaS") platforms for
start-ups and established businesses. Ben is currently a non-board director at
Kraken Technologies, which forms part of Octopus Energy Group. Ben was
previously Chief Commercial Officer at DPR Limited and has held senior
positions at Fiserv and MoPowered. Ben is not currently a director or partner
of any other companies or partnerships and has not been during the last five
years.

 

Separately, on 14 July 2023 the Company announced, amongst other matters, its
intention to review the composition of the Board in the near future. In this
respect, as part of the Company's ongoing efforts to realise cost savings
where possible, and following a comprehensive review, the Board has concluded
to reduce the number of directors on the Board. Accordingly, Julian Cazalet,
Mark Wippell and Professor Tim Irish have stepped down from the Board as
Non-Executive Directors, with effect from 1 December 2023. In light of the
aforementioned changes, Chris Jones, currently a Non-Executive Director, will
now become a Senior Independent Non-Executive Director ("SID").

 

Nigel Keen, Chairman of Deltex Medical, said:

 

"I am very pleased to welcome Ben to the Board of Deltex Medical. His
extensive experience, which includes holding leadership roles in blue chip
organisations, establishing international alliances and operations,
implementing turn-around strategies, and launching products and services, will
be a great benefit to the Company going forward.

 

The Board would like to offer our sincere gratitude to Julian Cazalet, Mark
Wippell and Professor Tim Irish for their unequivocable support over the past
years and in particular, their instrumental support during the most recent
fundraising and broader restructuring. We wish them all well in their
respective future endeavours."

 

Change of auditor

 

The Company also announces that the Board has approved the appointment of
Cooper Parry as the Group's new external auditor following a competitive audit
tender process, and that CLA Evelyn Partners Limited (formerly Nexia Smith
& Williamson) has resigned as the Group's auditor.

 

For further information, please contact:

 Deltex Medical Group plc                                        01243 774 837
 Nigel Keen, Chairman                                            investorinfo@Deltexmedical.com
 Andy Mears, Chief Executive
 Natalie Wettler, Group Finance Director

 Allenby Capital Limited - Nominated Adviser & Broker            020 3328 5656
 Jeremy Porter / Vivek Bhardwaj (Corporate Finance)              info@allenbycapital.com
 Tony Quirke / Stefano Aquilino (Sales & Corporate Broking)

 

Notes for Editors

Deltex Medical's technology

Deltex Medical's TrueVue System uses proprietary haemodynamic monitoring
technology to assist clinicians to improve outcomes for patients as well as
increase throughput and capacity for hospitals.

 

Deltex Medical has invested over the long term to build a unique body of
peer-reviewed, published evidence from a substantial number of trials carried
out around the world. These studies demonstrate statistically significant
improvements in clinical outcomes providing benefits both to patients and to
the hospital systems by increasing patient throughput and expanding hospital
capacity.

 

The Group's flagship, world-leading, ultrasound-based oesophageal Doppler
monitoring ("ODM") is supported by 24 randomised control trials conducted on
anaesthetised patients. As a result, the primary application for ODM is
focussed on guiding therapy for patients undergoing elective surgery, although
sedated patients in intensive care are still an important part of our
business. The Group's new, next generation monitor makes the use of the ODM
technology more intuitive and provides augmented data on the status of each
patient.

 

Deltex Medical's engineers and scientists carried out successful research in
conjunction with the UK's National Physical Laboratory ("NPL"), which has
enabled the Group's 'gold standard' ODM technology to be extended and
developed so that it can be used completely non-invasively. This will
significantly expand the application of Deltex Medical's technology to
non-sedated patients. This new technological enhancement, which will be
released on the new next generation monitor, will substantially increase the
addressable market for the Group's haemodynamic monitoring technologies and is
complementary to the long-established ODM evidence base.

 

Deltex Medical's new non-invasive technology has potential applications for
use in a number of healthcare settings, including:

§ Accident & Emergency for the rapid triage of patients, including the
detection and diagnosis of sepsis;

§ in general wards to help facilitate a real-time, data-driven treatment
regime for patients whose condition might deteriorate rapidly; and

§ in critical care units to allow regular monitoring of patients post-surgery
who are no longer sedated or intubated.

 

One of the key opportunities for the Group is positioning this new,
non-invasive technology for use throughout the hospital. Deltex Medical's
haemodynamic monitoring technologies provide clinicians with beat-to-beat
real-time information on a patient's circulating blood volume and heart
function. This information is critical to enable clinicians to optimise both
fluid and drug delivery to patients.

 

Deltex Medical's business model is to drive the recurring revenues associated
with the sale of single-use disposable ODM probes which are used in the
TrueVue System and to complement these revenues with a new incremental revenue
stream to be derived from the Group's new non-invasive technology.

 

Both the existing single-use ODM probe and the new, non-invasive device will
connect to the same, next generation monitor launched in July 2023. Monitors
are sold or, due to hospitals' often protracted procurement times for capital
items, loaned in order to encourage faster adoption of the Group's technology.

 

Deltex Medical's customers

 

The principal users of Deltex Medical's products are currently anaesthetists
working in a hospital's operating theatre and intensivists working in ICUs.
This customer profile will change as the Group's new non-invasive technology
is adopted by the market. In the UK the Group sells directly to the NHS. In
the USA the Group sells directly to a range of hospital systems. The Group
also sells through distributors in more than 40 countries in the European
Union, Asia and the Americas.

 

Deltex Medical's objective

 

To see the adoption of Deltex Medical's next generation TrueVue System,
comprising both minimally invasive and non-invasive technologies, as the
standard of care in haemodynamic monitoring for all patients from new-born to
adult, awake or anaesthetised, across all hospital settings globally.

 

For further information please go to www.deltexmedical.com
(http://www.deltexmedical.com)

 

 

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