Deltex Medical (LON:DEMG) shares jumped nearly 19 percent in late afternoon deals to 15.75 pence in the wake of a positive report from the National Institute for Health and Clinical Excellence (NICE), the advisory body for the NHS.
"NICE's draft guidance is a huge endorsement for CardioQ-ODM”, Deltex Medical chief executive Ewan Phillips said.
NICE today published its draft guidance on the CardioQ oesophageal Doppler monitoring (ODM) device.
"The case for adopting CardioQ-ODM in the NHS is supported when it is used in patients undergoing surgical procedures who would otherwise require invasive cardiac monitoring,” NICE said.
According to NICE the product will provide the NHS with average cost savings of £1,062 per patient, when the CardioQ-ODM is used to measure blood-flow instead of an invasive catheter.
The NHS watchdog plans to develop implementation tools to help NHS hospitals to put the guidance into practice, and start using the CardioQ-ODM.
“The estimated average savings of over £1,000 per patient were calculated assuming 800,000 eligible patients each year in England alone,” Phillips said.
“This should add further to the growing momentum for system wide adoption of CardioQ-ODM in the English NHS.”
Last week Deltex reported ‘substantial progress’ in its interim results and said it cash break-even point was likely to come before the end of the current year.
In the first six months of the financial year, Sales jumped 13% to £2.9 million, while operations expenses decreased 7% to £2.8 million and operating losses were slashed nearly in half to £0.6 million. Gross margins were up 1%.
Gross profit climbed from £1.9 million to £2.2 million, while pre-tax losses declined from £1.2 million to £0.6 million.
The increase in revenues was driven by a significant improvement in probe sales in key target markets. US sales jumped 35%, while sales to European distributors soared 39%. UK surgical probe sales rose 16%, leading to an overall increase of 4%.
Deltex’s largest US account agreed to buy at least 200 probes every month worth the minimum of US$34,000.