REG - Deltex Med Grp PLC - New monitor launch update & new loan facility

Deltex MedicalAnnouncement

25/04/2023 07:00

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RNS Number : 2927X  Deltex Medical Group PLC  25 April 2023

The information contained within this announcement was deemed by the Company
to constitute inside information as stipulated under the UK Market Abuse
Regulation

 

 

25 April 2023

 

 

Deltex Medical Group plc

("Deltex Medical" or the "Group")

 

New monitor expected to launch in June 2023

 

£0.25 million bridging loan to help fund working capital

associated with accelerated production of the new monitor

 

Deltex Medical Group plc (AIM: DEMG), the global leader in oesophageal Doppler
monitoring, today provides an update on its new monitor and announces that it
intends to launch the product in June 2023.

 

The Group's technical department has conducted a detailed review of the small
number of outstanding items that need to be addressed in order to complete the
new monitor's regulatory technical file. Based on this review, the technical
file, as well as other related regulatory submissions, are expected to be
finalised by the end of May 2023. This will enable the Group to start the
first production run of the new monitor in June, with shipments anticipated at
the end of that month.

 

In order to capitalise on market interest in, and anticipated demand for, the
new monitor, Deltex Medical wishes to accelerate the placement of orders for
components required for the initial, and subsequent, production runs for the
new monitor.  Accordingly, the Board has entered into an agreement with
Imperialise Limited, a company controlled by Mr. Nigel Keen, Chairman of
Deltex Medical and the Group's largest shareholder, for a bridging loan of
£0.25 million to fund the additional working capital.  The Board is
satisfied that the Group has sufficient working capital for the foreseeable
future based on its budget for the year, but this new bridging loan will allow
the Group to enter into additional commitments with its supply chain to
accelerate the build of new monitors in anticipation of demand, as well as
investing in marketing programmes around the launch of the new product.

 

The loan is unsecured, carries an interest rate of 12% per annum and has a
minimum term of three months, after which time Imperialise Limited can demand
its repayment at any time.

 

 

Commenting on the new monitor, Andy Mears, Chief Executive of Deltex Medical,
said:

 

"Now we have a launch date for the new monitor we need to make sure we have
sufficient units being built to satisfy expected demand. Initial interest in
the new monitor has been good and we look forward to following up this
interest with a timely supply of the new product."

 

 

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. The
Group will shortly launch a new, next generation monitor which will make the
use of the ODM technology more intuitive and provide 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 which is due for launch in 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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