Business Update

Cambridge, UK, 26 January 2015: Sphere Medical Holding plc (AIM: SPHR.L), (“Sphere Medical” or the “Company”), a leading provider of innovative monitoring and diagnostic devices for the critical care setting, today provides a business update.

Commercial update

Proxima 3 was launched into the UK market in September 2014 and commercialisation activities are proceeding according to plan.  The Company has received its first intention to purchase from Queen Elizabeth Hospital Birmingham and there are in excess of 20 prospects in the sales pipeline of which 10 product evaluations on patients are planned in Q1 2015.  The objective is to build an active customer base leading to recurring revenues.

In addition, Sphere Medical is progressing its plan to commercialise Proxima 3 in Europe in H1 2015.  Proxima 3 will be launched at ISICEM in Brussels in March 2015 and sales will be initially targeted within the Netherlands, Belgium and German markets through a small, direct sales team.  The considerable experience of the new Medical Advisory Board members is proving instrumental in facilitating entry into these important markets.

Board Appointments

In January 2015 the Company announced the appointment of Meinhard Schmidt and Dr David Martyr to the Company’s Board as Non-Executive Directors.  These appointments have significantly bolstered the Board with two highly experienced professionals with significant experience in commercialising medical devices as well as a strong business development and M&A track records.

Collaboration with Ortho-Clinical Diagnostics

The Ortho-Clinical Diagnostics Collaboration Agreement continues to progress satisfactorily, focussing on the product enhancements planned for Proxima 4.

Financial update

The Company’s financial performance for the period was ahead of budget.  The unaudited cash balance at 31 December 2014 was £3.7 million.

Sphere Medical’s Chief Executive Officer, Wolfgang Rencken, said: “The Company has clear near-term commercial value drivers: achieve sales revenues for Proxima 3 in the UK and from our initial target European markets; negotiate a commercial deal on Proxima; and launch Proxima 4 in Europe.  The recent appointments to our Board of Directors and Medical Advisory Board have endorsed Proxima as well as bringing considerable experience to assist with the delivery of our commercialisation strategy.”