Chairman’s Statement to the Annual General Meeting

Deltex Medical Group PLC

08 May 2024

 

8 May 2023

Deltex Medical Group plc

("Deltex Medical" or the "Group")

Chairman's Statement to the Annual General Meeting

At today's Annual General Meeting of Deltex Medical Group plc (AIM:DEMG), the global leader in Oesophageal Doppler Monitoring ("ODM"), the Group's Chairman, Nigel Keen, will make the following statement:

AGM Statement

"As we outlined in our results statement the Group is making good progress with the launch of the new TrueVue monitor in the UK, EU and countries outside of the EU where European CE marking is recognised and orders from these regions are increasing.

The Group also continues to maximise revenues from the legacy ODM+ monitor, and whilst from a regulatory perspective we will continue to support this device for the next ten years, we have just informed our non-EU distribution network that this device is now on a last-time buy. We currently hold the components to build one hundred ODM+ monitors and therefore expect to convert this stock on our balance sheet into cash over the next twelve months as a result of orders from our existing international distributors.

Sales negotiations are now underway with multiple distributors, and we expect to make the first sales on this last-time buy soon.

Work is on-going to register the new TrueVue System into the USA through FDA 510K approval and sales are expected to start in 2025. As well as the USA we are registering the new TrueVue System into many countries across Asia and Latin America.

Good progress is being made on the new easy to use non-invasive device, which will sit within the new TrueVue system, alongside the core ODM technology.

Having met the operational and internal requirements agreed by the Board for the first quarter, we are confident that we will also achieve that in the second quarter and our outlook for the rest of the year remains positive."

For further information, please contact:

Deltex Medical Group plc	01243 774 837
Nigel Keen, Chairman	[e-mail]
Andy Mears, Chief Executive
Natalie Wettler, Group Finance Director
Allenby Capital Limited - Nominated Adviser & Broker	020 3328 5656
Jeremy Porter / Vivek Bhardwaj (Corporate Finance)	[e-mail]
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, new TrueVue monitor which was released onto the market in November 2023. Monitors are sold or, due to hospitals' often protracted procurement times for capital items, may be 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 new TrueVue monitor, 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

 

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