Deltex Medical Group plc (LON:DEMG), the global leader in Oesophageal Doppler Monitoring, today announced its audited results for the year ended 31 December 2017.
Statutory results
· Operating loss reduced by £0.4m to £2.0m (2016: £2.4m)
· Group revenues £0.4m lower at £5.9m (2016: £6.3m)
· Gross margins improved to 75% (2016: 68%)
· Cash at 31 December 2017 of £0.2m with a further £2.0m after expenses raised in 2018
Key performance measures
· US pay per use probe revenues up 8% at £1.4m (2016: £1.3m)
· Top two US territories achieved 50% or over pay per use revenue growth
· Revenues from US managed care contracts down 20% at £0.4m (2016: £0.5m) due to one lost account
· International probe revenues flat at £1.6m (2016: £1.6m) with 5% growth from major markets
· UK probe sales down by 26% at £1.4m (2016: £1.9m)
· Monitor revenues flat at £0.4m (2016: £0.4m)
· Consumable gross margin increased to 82% (2016: 74%) generating £0.4m additional margin
· Loss before non-cash costs reduced by 31% to £1.1m (2016: £1.6m)
· Net cash used in operating activities halved to £0.9m (2016: £1.8m); c. £1.0m annualised cost reductions implemented/planned in 2018
Operating Highlights
2017
· 30th US platform account milestone achieved
· TrueVueTM System launched on CardioQ-ODM+ platform
· TrueVueTM Impedance, high-definition impedance cardiography, added to CardioQ-ODM+ platform in UK and select International markets
2018 to date
· Major new US top rated hospital account after rigorous evaluation of TrueVueTM Doppler
· 8-year tender worth at least €4m awarded across Paris hospitals
· FEDORA trial published: TrueVueTM Doppler delivered 75% fewer post-operative complications, including significant reductions in acute kidney injury and healthcare acquired infections
· Three-year contract extension for UK distribution of CASMED cerebral oximetry products
· Global release announced today of unique TrueVue Loops display
· Q1 revenues held back by expected timing differences on monitor sales: year on year growth in all three sales operations in April including UK probe revenues
Nigel Keen, Deltex Medical Group plc Chairman of Deltex Medical, commented: “The progress made towards operating cash breakeven and profitability through improved consumable margins and reduced overheads made during 2017 was partially offset by a disappointing second half sales performance.
“Since the end of the year we have put the Group on a significantly more secure financial footing through raising £2.0m additional capital and reducing our cash costs by £1.0m on an annualised basis.
“We have seen a number of new accounts coming on stream in the US market, including a very major one which started using TrueVueTM Doppler as the result of a rigorous and successful evaluation. Our French distributor has been awarded the largest tender which we have seen to date for the use of TrueVueTM Doppler and we have continued to migrate our business towards our multi-modal TrueVueTM System. The TrueVueTM System allows us to refresh our market positioning and through the TrueVueTM System we have the possibility of guiding treatment for greater numbers of patients.
“In the meantime, the largest ever randomised trial of our core TrueVueTM Doppler technology has been published with excellent results and very broad applicability for patients undergoing surgery who need to be protected from expensive, life-shortening complications. This is further compelling evidence that many of these complications are avoided through the use of TrueVueTM Doppler.”
The company went on to announce the launch of the TrueVueTM Loops display software on its CardioQ-ODM+ haemodynamic monitoring platform.
The TrueVueTM Loops software is being released globally and is initially available in English, US English, French, Spanish, German and Swedish versions. It is available for customers to purchase as a software licence upgrade to their CardioQ-ODM+ monitor platforms.
The TrueVueTM Loops display gives users a simultaneous display of a patient’s aortic blood flow velocity and aortic blood pressure. The aortic blood flow velocity is taken directly from the TrueVueTM Doppler probe and the blood pressure from a continuous blood pressure device.
The display has been developed by doctors from Lariboisiere Hospital in Paris. Their research has focused on using TrueVueTM Loops to identify the effects of administering vaso-active drugs and to guide their safe administration. The Company is recruiting other clinical experts to join a collaborarative research effort to look at this and other potential clinical applications.
Ewan Phillips, Deltex Medical’s Chief Executive, commented: “Release of the TrueVueTM Loops is an exciting development for the Company. By giving doctors, for the first time ever, a complete and continuous picture of a patient’s cenrtral haemodynamic status the Loops should take the science of haemodynamics forward in both intensive and peri-operative care. The initial focus on vaso-active drugs offers the possibility of Deltex building a strong competitive advantage in this area to match its existing strength in fluid management.”
