TIDMDEMG
RNS Number : 1796F
Deltex Medical Group PLC
06 July 2023
The information contained within this announcement was deemed by
the Group to constitute inside information as stipulated under the
UK Market Abuse Regulation
6 July 2023
Deltex Medical Group plc
("Deltex Medical", the "Company" or the "Group")
Half-Year Trading Update
and
Potential Equity Fundraise
Deltex Medical Group plc (AIM: DEMG), the global leader in
oesophageal Doppler monitoring, provides a trading update following
the end of the first half of its current financial year on 30 June
2023 ("H1 2023").
Key highlights:
-- unaudited revenues for H1 2023 were GBP1.1 million (H1 2022: GBP1.2 million).
-- cash at hand on 30 June 2023 was GBP0.1 million (H1 2022: GBP0.6 million).
-- next generation TrueVue monitor has completed all required
internal and external testing, with the finalisation of the
technical file expected imminently to enable launch of the
product.
Update on launch of next generation TrueVue monitor
As previously announced by the Group, work in relation to the
next generation TrueVue monitor is substantially complete, with the
Group having completed all the required internal and external
testing. As a result of this, the independent test company used by
the Group has issued its report on its third-party review of the
safety tests and is now conducting the review on the
electromagnetic compatibility (EMC) report of the monitor.
Following completion of that review, the Group expects to be able
to quickly finalise the technical file (the "Technical File")
required for the launch of the new monitor and following which the
product will be eligible for use by clinicians. It is a regulatory
requirement for the Group to complete the Technical File before the
new monitor can be released for sale in the UK and EU.
Trading update
Unaudited revenues for the six months ended 30 June 2023 were
GBP1.1 million (H1 2022: GBP1.2 million). As announced on 26 June
2023, the Group has experienced weaker than expected trading in the
second quarter of 2023, which the Board believes is a result of,
inter alia, customers waiting for the new TrueVue monitor to be
available. Cash at hand on 30 June 2023 was GBP0.1 million (H1
2022: GBP0.6 million).
The combination of delays in the launch of the Group's next
generation TrueVue monitor and the national tender for haemodynamic
monitoring with one of the Group's Latin American distributors
failing to progress to the stage of a revenue contributing contract
for the Group, has impacted the Group's financial position as
announced on 26 June 2023. Accordingly, on 26 June 2023, the
Group's ordinary shares were suspended from trading on AIM pending
clarification of the Group's financial position, for which
fundraising is being explored as detailed below.
Potential equity fundraise
The Board is considering various options to obtain additional
finance for the Group and is currently exploring an equity
fundraise to provide the necessary working capital. The Group is
working with its broker, Allenby Capital, to discuss a potential
equity fundraise with investors. In order that existing
shareholders can also take part in a fundraising, a retail
fundraising offer is also being considered. Brokers or wealth
mangers acting for existing shareholders may contact Allenby
Capital, the Company's broker.
There can be no certainty that an equity fundraising will be
concluded, however, any such equity fundraising is likely to be
conducted at a material discount to the Group's current share
price.
The Board is also seeking to obtain a resumption of trading in
the Group's shares on AIM as soon as possible. In any case, this is
expected to be after the completion of a sufficient fundraise.
In the absence of availability of any alternative funding
solutions, the Directors consider that it is highly likely that the
Company would be required to appoint an administrator in order to
protect the interests of creditors.
The Group will make further announcements, including details of
any fundraising, as and when appropriate.
For further information, please contact:
Deltex Medical Group plc 01243 774 837
Nigel Keen, Chairman investorinfo@Deltexmedical.com
Andy Mears, Chief Executive
Natalie Wettler, Group Finance Director
Allenby Capital Limited - Nominated
Adviser
& Broker 020 3328 5656
Jeremy Porter / Vivek Bhardwaj (Corporate info@allenbycapital.com
Finance)
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. The Group will
shortly launch a new, next generation monitor which will make the
use of the ODM technology more intuitive and provide 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, next generation monitor which is
due for launch in 2023. Monitors are sold or, due to hospitals'
often protracted procurement times for capital items, 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 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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