Deltex Medical Group PLC Chairman's Statement to Annual General Meeting (8454L)

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RNS Number : 8454L

Deltex Medical Group PLC

18 May 2022

18 May 2022

Deltex Medical Group plc

("Deltex Medical" or the "Company")

Chairman's Statement to 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

"There are encouraging signs that the Group's revenues in the UK and USA are beginning to recover, as disruption in hospitals caused by COVID-19 continues to subside. Whilst stringent infection control disciplines remain in place, the rate of growth of revenues remains highly dependent on our sales teams and clinical educators having the opportunity of good and engaged access in appropriate units within hospitals; this remains a challenge in certain accounts. However, as the number of global elective procedures increases and access into hospitals improves for our teams of clinical educators and sales experts, the use of Deltex Medical's haemodynamic monitoring technologies is expected to recover towards pre-Covid levels.

Our international division, which generates revenues via some 40 overseas distributors, continues to record increased activity levels. Similar to 2021, we are expecting robust growth from this division during the year.

At this AGM we are demonstrating our new, next generation TrueVue monitor, that includes a novel non-invasive modality which will be launched onto the UK and European markets later this year subject to regulatory approval. The release of this monitor will drive the new non-invasive device and will expand the addressable market. We expect it to help us build a significant order book, enable better access into hospitals and give rise to incremental revenues as distributors and hospitals upgrade their current monitors to this latest version, with purchases from both our international distributors and hospitals in the UK and USA. We anticipate that these incremental revenues will continue for a number of years given the size of the installed base of the existing Deltex Medical monitors in the market."

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 Joint Broker 
  Allenby Capital Limited                020 3328 5656 
 Jeremy Porter                         [e-mail] 
  Vivek Bhardwaj 
 
 Joint Broker 
 Turner Pope Investments (TPI) Ltd     020 3657 0050 
 Andy Thacker                          [e-mail] 
  James Pope 
 

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 controlled trials conducted on anaesthetised patients. As a result, the primary application for ODM is focussed on guiding therapy for patients undergoing elective surgery.

During 2021, 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 available 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.

Our 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 in 2022 is positioning this new, non-invasive technology for use throughout the hospital. Our 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.

Our 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 our new non-invasive technology.

Both the existing single-use ODM probe and the new, non-invasive device connect to the same, next generation monitor which is due for launch in 2022. Monitors are sold or, due to hospitals' often protracted procurement times for capital items, loaned in order to encourage faster adoption of our technology.

Deltex Medical's customers

The principal users of our products are currently anaesthetists working in a hospital's operating theatre and intensivists working in ICUs. This customer profile will change as our new non-invasive technology is adopted by the market. In the UK we sell directly to the NHS. In the USA we sell directly to more than 30 major hospitals that appreciate the value of our evidence-based approach to haemodynamic management. We also sell through distributors in more than 40 countries in the European Union, Asia and the Americas.

Deltex Medical's objective

To see the adoption of our 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

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