CardioQ update

Deltex Medical Group PLC 15 April 2008 Deltex Medical Group plc UK NHS's Centre for Evidence-based Purchasing publishes evidence review and economic assessment of oesophageal Doppler monitoring 15 April 2008 - Deltex Medical Group plc ('Deltex Medical'), the UK's leading haemodynamic monitoring company, today announces the results of a new report on the CardioQ(TM) technology of oesophageal Doppler monitoring (ODM). The report is an Evidence Review by the Centre for Evidence-based Purchasing ('CEP'), which is part of the Policy and Innovation Directorate of the NHS Purchasing and Supply Agency. The report is 'based on evidence contained in a high-quality 2007 systematic review of ODM in patients during surgery and post-operatively from the US Agency for Healthcare Research and Quality (AHRQ)': the Company notes that this is the same AHRQ review which drove the decision of the Centers for Medicare and Medicaid Services to cover ODM for reimbursement nationally across the USA. In respect of use during surgery, the Company's key target market for the CardioQ, the CEP report concludes: 'In patients undergoing high-risk surgery, addition of ODM-guided fluid administration to CVP monitoring plus conventional clinical assessment (comparison 1) is likely to result in fewer deaths, fewer complications, and a shorter length of hospital stay. The costs of ODM are likely to be offset by reductions in both complications and length of hospital stay (although the costs of treatments prompted by monitoring are uncertain)'. The economic analysis associated with this conclusion calculates a range of per patient equipment costs of between £65.60 per patient and £214.15 per patient (dependent on probe variant and frequency of use of the monitor). It also calculated a range of savings per patient from using the CardioQ of between £642 and £4,441. Comparing the highest cost above with the lowest saving indicates that the NHS saves at least £3.00 for every £1.00 it spends on the CardioQ: the saving rises to £67.00 for every £1.00 spent on the CardioQ if the lowest cost per patient is compared to the highest benefit. CEP gives one of four verdicts to health technologies based on its evidence reviews ranging from 'recommended' to 'not recommended'. In respect of ODM its verdict is 'significant potential', although the Company notes that CEP has never given any technology a higher verdict than 'significant potential'. The CEP report provides an early synopsis of a technology assessment report commissioned by the National Coordinating Centre for Health Technology Assessment and which is due to be published in October 2008. The CEP report is available at www.pasa.nhs.uk/PASAWeb/NHSprocurement/CEP. Deltex Medical's Chief Executive, Andy Hill commented: 'The CEP report confirms once again the strong evidence that the CardioQ significantly improves outcomes for large numbers of patients undergoing surgery. This is the first UK Government commissioned economic analysis of the potential impact of the CardioQ across the NHS and the results are stunning, with savings identified of up £4,441 per patient. This report will make it harder than ever before for the NHS to deny funding to those clinicians wishing to use the CardioQ. 'We will be seeking to work closely with the report's authors over the coming months to provide them with whatever extra information they feel they need in order to recommend the CardioQ be formally recognised as a standard of care for a significant proportion of the 3,000,000 NHS patients who undergo surgery every year.' For further information, please contact:- Deltex Medical Group plc 01243 774 837 Nigel Keen, Chairman njk@deltexmedical.com Andy Hill, Chief Executive ahill@deltexmedical.com Ewan Phillips, Finance Director eap@deltexmedical.com Gavin Anderson & Company 0207 554 1400 Deborah Walter dwalter@gavinanderson.co.uk Robert Speed rspeed@gavinanderson.co.uk Stuart Macaulay smacaulay@gavinanderson.co.uk Charles Stanley Securities 020 7149 6000 (Nominated Adviser) Philip Davies philip.davies@csysecurities.com Russell Cook russell.cook@csysecurities.com Notes for Editors Deltex Medical manufactures and markets the CardioQ(TM) monitor, which uses disposable ultra-sound probes inserted into the oesophagus to determine the amount of blood being pumped around the body - 'circulating blood volume'. Reduced circulating blood volume is known as hypovolaemia, which leads to insufficient oxygen being delivered to the organs. This causes medical complications including peripheral and major organ failure which can lead to death. Hypovolaemia, which is akin to severe dehydration, affects virtually every patient having surgery because of the combined effects of pre-operative starvation, the impact of the anaesthetic agents and trauma from the surgery itself. Using fluids and drugs, guided by the CardioQ, to optimise the amount of circulating blood significantly reduces post-operative complications allowing patients to make a faster, more complete recovery and return home earlier. The CardioQ incorporates the Company's proprietary software and a small diameter, easy-to-use, minimally invasive, disposable oesophageal probe that is used for transmitting and receiving an ultra-sound signal. By using this technology, the CardioQ provides clinicians with the ability to haemodynamically optimise critically ill patients and those undergoing routine moderate to major surgery through the controlled administration of fluid and drugs. Haemodynamic optimisation has been scientifically proven to improve the speed and quality of patient recovery and reduce hospital stay. There are already around 1,500 CardioQs currently in use in hospitals worldwide and distribution arrangements are in place in over 30 countries. In addition, there are currently more than 90 clinical publications on the use of the CardioQ which 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 probe held 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 for taking snapshots or monitoring over short periods. This information is provided by RNS The company news service from the London Stock Exchange
UK 100

Latest directors dealings