Deltex Medical seeking to raise 2.5m pounds through share issue

AIM-listed Deltex Medical, the maker of a technological device which can monitor blood flow during and after operations, has announced a placing of more than 13m shares so as to raise 2.5m pounds.

The 13,157,895 new ordinary shares of one pence each are being placed by Arden Partners on behalf of Deltex at a price of 19p.

The proceeds of the placing are to be used to fund Deltex's second phase collaboration project with Premier Inc, a performance improvement alliance of more than 2,700 US hospitals and 90,000 other sites.

The programme aims to result in the implementation of CardioQ-ODM - its highly sensitive blood flow measuring device - in up to five US hospitals and will involve the payment of fees to Premier.

The programme will additionally give Deltex access to Premier's patient outcome and hospital cost data as well as Premier's clinical change management and quality improvement expertise.

The company estimated that the total additional costs of implementing CardioQ-ODM into three Premier alliance hospitals would be approximately £1.3m which would be spread over two years.

Nigel Keen, Chairman of Deltex Medical Group, commented: "This research collaboration is an exciting development for the company following on from the Duke University Medical Centre study where the CardioQ-ODM formed a core part of the enhanced recovery programme. We believe that Premier's alliance of 2,700 U.S hospitals could be the launch pad for a substantial increase in penetration of the US market by CardioQ-ODM".

NICE: £1,100 cost-saving per patient when device usedIn March 2011, the National Institute for Health and Clinical Excellence issued medical guidance on the device stating that the cost-saving per patient when Deltex' CardioQ-ODM was used instead of a central venous catheter in the peri-operative period was about £1,100 based on a 7.5-day hospital stay.

The guidance further stated: "There is a reduction in post-operative complications, use of central venous catheters and in-hospital stay compared with or without invasive cardiovascular monitoring."

MF