Contract win in the Americas

RNS Number : 6790Z

Deltex Medical Group PLC

26 January 2022

 

26 January 2022

Deltex Medical Group plc

Contract win in the Americas

Deltex Medical Group plc (the "Group" or "Deltex Medical") (AIM: DEMG), the global leader in oesophageal Doppler monitoring, has received an order from a key distributor in the Americas of US$200,000 for the current generation TrueVue monitors. This order will also result in attractive on-going contracted monthly revenues for the single-use probes, which are used with these devices.

Over the past eighteen months Deltex and its distributor have been working in-market to gain regulatory approval for the current TrueVue monitor and to validate its use within the hospital systems. Initially the distributor purchased five monitors to carry out in-hospital evaluations and these trials proved successful leading to the TrueVue technology being chosen to fulfil the initial government tender in that market.

As a result, Deltex has now received an initial order for monitors to fulfil government-awarded contracts, with installation expected over the next nine months. Further monitor orders are expected later this year once more tenders are awarded.

This contract win reflects the broader growth achieved during 2021 by the Group's international division.  Whilst direct sales in the UK and US markets have been significantly adversely affected by COVID-19, the Group has re-focused its commercial activities on territories where, in collaboration with its network of distributors, it has been able to obtain regular access to operating rooms. This has enabled Deltex it to demonstrate the value and utility of its technology for elective surgery and in intensive care.

In 2021, the international division's revenues grew by more than 30% (2021 revenues: £0.83 million 2020: £0.6 million). This growth in revenues helps to demonstrate the success that Deltex Medical can achieve when it is able to access hospitals, and in particular operating rooms, to carry out on-site training and evaluations.

Commenting on the overseas contract win, Andy Mears, CEO of Deltex Medical said:

'I am delighted by this contract award as it helps underscore the potential for growth and ongoing recurring probe revenues that exists for Deltex Medical's core TrueVue Doppler technology around the world.'

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
Nominated Adviser and Broker Arden Partners plc	0207 614 5900
Paul Shackleton (Corporate Finance)	[e-mail]
Simon Johnson (Corporate Broking)
Joint Broker
Turner Pope Investments (TPI) Ltd	0203 657 0050
Andy Thacker James Pope	[e-mail]

Notes for Editors

Deltex Medical manufactures and markets haemodynamic monitoring technologies which are primarily used in critical care and general surgical procedures. Deltex Medical's proprietary oesophageal Doppler monitoring (TrueVue Doppler) measures blood flow velocity in the central circulation in real time. The technology generates a low-frequency ultrasound signal which is highly sensitive to changes in blood flow and measures such changes in 'real time'. Deltex Medical is the only company in the enhanced haemodynamic monitoring space to have built a robust and credible evidence base demonstrating both the clinical and economic benefits of its core technology: TrueVue Doppler. This technology has been proven in a wide range of clinical trials to reduce complications suffered by patients after surgery and consequently can save hospitals money.

Clinicians would like to be able to monitor the haemodynamic status of awake patients not only in the operating room and intensive care departments.  Our R&D programmes will provide the capability for Deltex Medical devices to be used in A&E, including, for example, for the rapid detection of sepsis, as well as on lower acuity wards or outside the hospital setting.

Deltex Medical is designing the next generation of non-invasive Doppler ultrasound devices that will be released onto the TrueVue platform and will accurately measure a non-sedated patient's haemodynamic status anywhere within the hospital and not just for elective surgical patients.

Group goal

Haemodynamic management is now becoming widely accepted as a vital part of the anaesthesia protocols for surgical patients, as well as treating ventilated intensive care patients, including ventilated COVID-19 patients. There is also a desire to start measuring haemodynamics on awake patients outside of the operating room or intensive care departments, such as in lower acuity units or in A&E. Our R&D programmes are targeting these broader applications. Consequently, the Group's focus is on maximising value from the opportunities associated with: the COVID-19 pandemic; the elective surgery backlog; the risks associated with sepsis; awake patients and the higher profile of haemodynamic monitoring which has arisen from recent consolidation in the sector.

The Group aims to provide clinicians with a modern, next generation, single 'haemodynamic workstation' platform which offers them a range of technologies from simple to sophisticated to be deployed according to the patient's clinical condition as well as the skill and expertise of the user. Doing this will enable the Group to partner with healthcare providers to support modern haemodynamic management across the whole hospital.

The Group is currently in the implementation phase of achieving this goal in a number of territories worldwide, operating directly in the UK and the USA, and via agreements with approximately 40 distributors overseas.

 

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