Launch of New System/Placing
AORTECH INTERNATIONAL PLC
30 July 1999
AORTECH INTERNATIONAL plc
Launch of Continuous Cardiac Output Monitoring System
Placing to Raise £3m before expenses
AorTech International plc, ('AorTech' or 'the Company')
the Scottish-based manufacturer of cardiovascular devices
announces the launch of its True Continuous Cardiac
Output Monitoring System. This system represents a major
breakthrough in the management of critically ill patients
& patients undergoing major surgery cardiac output.
* Agreements concluded to secure rights to the
intellectual property, including the USA patents,
for the innovative new Continuous Cardiac Output
Monitoring System.
* Development work and Phase 1 clinical trials
successfully completed.
* Product addresses shortcomings in current clinical
procedures. Significant potential cost savings.
* Market is currently estimated at approximately
US$200 million but will show significant growth with
introduction of AorTech's new system.
* All other projects on schedule and on budget.
* Elast-Eon - Evaluation Agreements signed with five
major corporations.
* Core business continuing to improve.
Gordon Wright, Chairman, commented:
'.. this system represents a major breakthrough in the
monitoring of patients' cardiac output in intensive care,
coronary care units and operating theatres. TruCCOMS
could save significant costs through improved patient
management and shorter hospital stays.
'The expansion of AorTech's range of products and
services is already having a positive effect on the
Company's turnover and results .. .'
Samer Nashef, Consultant Cardiac Surgeon, Papworth
Hospital, commented:
'The medical community has long sought a device that can
continuously monitor cardiac output in patients on
intensive care units, coronary care units and operating
theatres. Such a device would help in caring for
critical patients by providing prompt diagnosis and
allowing timely intervention. The early clinical results
from AorTech's new continuous cardiac output monitoring
system appear to indicate that the system would meet this
important clinical need'
30 July 1999
THERE WILL BE AN ANALYST MEETING TODAY (FRIDAY 30 JULY)
AT 11:00 AT COLLEGE HILL, 29 GRESHAM STREET, LONDON EC2
Enquiries:
AorTech International plc 01698 746699
Gordon Wright, Chairman
Eddie McDaid, Managing Director
College Hill 0171 457 2020
Michael Padley
Margot Cowhig
For further information, visit AorTech's website at
www.aortech.com
Placing
AorTech International plc announces that it proposes to
raise approximately £2.88 million (net of expenses) by
way of a Placing principally with institutional investors
of 3,595,106 New Ordinary Shares at 85p per share.
The funds raised will be used to acquire intellectual
property rights, to finalise clinical trials and
undertake the initial commercialisation of a new
Continuous Cardiac Output Monitoring System ('TruCCOMS'),
to continue with the next stage of development of the
Company's new synthetic tri-leaflet heart valve and to
make any business acquisitions the Company considers
appropriate.
The Placing is conditional, inter alia, on certain
resolutions being passed at an EGM of the Company.
CCOMS - Alba Critical Care Limited
We are pleased to have concluded agreements to secure
rights to the intellectual property, including the USA
patents, for the innovative TruCCOMS. In the Directors'
view, this system represents a major breakthrough in the
monitoring of patients' cardiac output both during and
after surgery.
The system, which consists of a disposable catheter
linked to an analytical and display monitor that provides
immediate response and continuous monitoring of cardiac
output, will introduce to the medical device market a
product which addresses shortcomings in the current
clinical assessment technology during surgical procedures
and intensive care.
Development work has completed during the last eighteen
months and the first phase of clinical trials confirms
the accuracy, fast response and real time capability.
Market enquiries indicates that the TruCCOMS will provide
improved patient management information which is not
currently available to surgeons, anaesthetists,
cardiologists and critical care specialists.
In parallel with the conclusion of second phase clinical
trials of TruCCOMS, which is scheduled for mid-September
this year, we shall be progressing towards both European
and USA regulatory approval. The Directors are seeking
to obtain these approvals by December 1999. If these are
obtained, the Directors anticipate that the technology
will be ready to enter intensive care units and operating
theatres by the end of December 1999. The achievement of
the Federal Drug Administration approval will allow the
Group to market TruCCOMS in the USA.
AorTech intends to commercially manufacture TruCCOMS at
its facility in Scotland.
The present world-wide market of approximately US$200
million will, the Directors believe, increase with the
introduction of our new system.
The acquisition of this intellectual property together
with the development of TruCCOMS to date through to
clinical trials represents a major breakthrough by the
Company and will, the Directors believe, result in real
growth in shareholder value.
The consideration for the acquisition of the rights to
the TruCCOMS product will be settled by the issue of a
maximum of one million Ordinary Shares in April 2000 and
a cash payment of US$600,000 to the vendor Ami-med
Corporation Inc. ('Ami-med'). Ami-med will also receive
a 6.5% shareholding in Alba, a subsidiary of AorTech,
with options to increase this shareholding to up to 24%
depending on the achievement of various milestones.
Current Trading
The financial year to 31 March 1999 was one of
significant progress. On the one hand, AorTech's
existing business of manufacturing and distributing heart
valves and associated products increased substantially
during the year with a 54% increase in turnover and
significantly reduced losses, and, on the other, major
milestones were achieved in the development of new
innovative products in the medical device sector.
Elastomedic has concluded Evaluation Agreements with five
major corporations for use of its biomaterials in
medical device applications other than the new synthetic
tri-leaflet heart valve.
Future Prospects
The expansion of AorTech's range of products and
services, which has been previously announced, is already
having a positive effect on the Company's turnover and
results and the Directors expect that this will continue
to be reflected during the course of the current
financial year.
The acquisition and development, through our subsidiary
Alba, of the new TruCCOMS demonstrates our determination
not only to expand further our product base but also to
introduce further innovative products with, we believe,
significant profit potential, to the medical device
market. Obtaining regulatory approval for TruCCOMS,
during the course of the current financial year together
with the likelihood of income commencing will, we
anticipate, have a substantial benefit for the long-term
future growth of AorTech.
Details of the Placing
The Company has entered into a Placing Agreement with
Bell Lawrie Wise Speke which is conditional, inter alia,
on the passing of Resolutions to be proposed at an EGM of
the Company to be held on 26 August 1999 and on the New
Ordinary Shares being admitted to trading on AIM.
Application has been made for the New Ordinary Shares to
be admitted to trading on AIM and it is anticipated that
they will be admitted to trading on AIM on 27 August
1999. The New Ordinary Shares will rank pari passu in
all respects with the Existing Ordinary Shares. Ian
Cameron, Director will be allocated 12,000 New Ordinary
Shares in the Placing at 85p per share.
A Circular containing details of the Placing, the
acquisition of the rights to TruCCOMS and Notice of the
EGM is expected to be dispatched together with the Report
& Accounts for the year ended 31 March 1999 to
shareholders later today.