15th Jan 2015 08:43
LONDON (Alliance News) - Deltex Medical Group PLC saw its shares rise early Thursday, recovering some of the recent declines in the stock, after it signed up another dedicated trainer hospital in the US, bringing the total number in the country to seven.
The company makes oesophageal Doppler monitoring technology. The monitoring systems are used to measure blood flow during surgery by generating a low-frequency ultrasound signal and utilising the Doppler effect. The Doppler effect is the change in frequency of a wave for an observer moving relative to its source, such as the way in which the noise of a siren changes when it passes by.
The company sends dedicated trainers into hospitals to help train physicians in using its technology.
It said Thursday that the new hospital it has signed up for a dedicated trainer account is owned by the same hospital system in North West US as one of the company's existing dedicated trainer accounts, and is covered by a newly agreed two year purchasing agreement which allows other hospitals in the 26 hospital system to implement CardioQ-ODM on the same terms.
"The contract commits the hospital, a large urban hospital specialising in cancer and cardiac care, to purchase a minimum of 30 single patient probes a month and allows it to purchase additional probes as the implementation progresses," it said.
Deltex Medical's US strategy is to penetrate a small number of hospitals deeply, building up clinical understanding of its products for fluid management during and after surgery. It then plans to roll out nationally.
It had signed its sixth US dedicated trainer account last June, and its fifth in January of last year.
Deltex Medical's shares were up 8.3% at 3.92 pence early Thursday, making it one of the best-performing stocks in the AIM All-Share index on the day.
However, the stock had been trading at about 7.00 pence before it warned on Christmas Eve that its full year sales would fall below the range of market expectations if some transactions were not completed before the end of the year. It had confirmed Wednesday that it expects its loss to be wider than market expectations, as its sales were hit by National Health Service de-stocking in the UK and by contract delays in its international business.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Deltex Medical