REG - Deltex Med Grp PLC - Year end update

Deltex MedicalAnnouncement

22/12/2022 07:00

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RNS Number : 5351K  Deltex Medical Group PLC  22 December 2022

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

 

22 December 2022

 

Deltex Medical Group plc

("Deltex Medical" or the "Group")

 

Year end update

New Monitor - update on regulatory approvals

Extension of standby loan facility by £0.25 million

 

Deltex Medical Group plc (AIM: DEMG), the global leader in oesophageal Doppler
monitoring, is pleased to announce that its year-to-date revenues are ahead of
the Group's full year 2021 revenue figures. In addition, the Group has a large
advanced opportunity in the pipeline which if successful, could provide a
further boost to revenue in the short term.

The Group has made good progress towards completing its innovative, next
generation TrueVue monitor (the "New Monitor"). The Group's original intention
had been to ship the New Monitor and subsequently invoice customers this year.
However, regulatory approvals needed before the New Monitor can be launched
onto the market will take several more weeks to be completed, including
further testing. This delay has been caused by headwinds associated with
strains in global supply chains that delayed the start of the approval
process, including the completion of the testing for regulatory compliance.

During 2022 Deltex Medical has shown the New Monitor to a number of customers
with a view to them purchasing the New Monitor. The Group is pleased to report
that interest has been strong, and the Group has already won a tender in
respect of the New Monitor at a price point significantly higher than price
levels typically achieved for the current monitor. Deltex Medical expects
strong demand from its distributors and end-users in relation to replacing
legacy monitors, once the New Monitor has been released for sale.

The business has been tightly managed and therefore operating costs are lower
than originally anticipated. However, in order to help fund the increased cash
requirements associated with the unexpected delay in the launch of the New
Monitor, Mr. Nigel Keen, the Company's largest shareholder and Chairman, has
agreed to provide further cash support to Deltex Medical, on arm's length
commercial terms.

Accordingly, the Board has entered into an agreement with Imperialise Limited,
a company controlled by Mr. Nigel Keen, for a loan of £0.25 million by way of
extension to the existing £0.5 million standby loan facility that was put in
place and announced by the Company on 20 September 2021 and is now fully drawn
down. The interest rate on the facility remains at 8% per annum, and it is
unsecured. The £0.75 million standby loan facility is repayable in full on or
before 31 December 2023.

 

For further information, please contact:

 Deltex Medical Group plc                                        01243 774 837

 Nigel Keen, Chairman                                            investorinfo@deltexmedical.com (mailto:investorinfo@deltexmedical.com)
 Andy Mears, Chief Executive
 Natalie Wettler, Group Finance Director

 Allenby Capital Limited - Nominated Adviser and Broker          020 3328 5656
 Jeremy Porter / Vivek Bhardwaj (Corporate Finance)              info@allenbycapital.com (mailto:info@allenbycapital.com)
 Tony Quirke (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.

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, an important capability for patients
presenting with COVID-19 symptoms;

§ 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 more than 30 major hospitals that
appreciate the value of Deltex Medical's evidence-based approach to
haemodynamic management. 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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