Preliminary Results for the year ended 31 December 2014

Cambridge, UK, 13 April 2015: Sphere Medical Holding plc (AIM: SPHR.L), (“Sphere” or “Sphere Medical” or the “Company”) a leading provider of innovative monitoring and diagnostic devices for the critical care setting, announces its audited preliminary results for the year ended 31 December 2014.

Key business highlights for 2014 and post-year end highlights

  • Proxima 3 system granted CE marking under the EU Medical Devices Directive
  • Successful Proxima 3 Post Market Clinical Follow-up Study at the Queen Elizabeth Hospital Birmingham
  • Proxima 3 was launched into the UK market in September 2014 and commercialisation activities are proceeding according to plan with the first intention to purchase from Queen Elizabeth Hospital Birmingham
  • Proxima 3 was launched into Europe at the International Symposium on Intensive Care and Emergency Medicine (ISICEM) in Brussels in March 2015
  • The Ortho-Clinical Diagnostics Collaboration Agreement continues to progress satisfactorily, focussing on the agreed product enhancements planned for Proxima 4
  • Appointed Meinhard Schmidt and Dr David Martyr to the Company's Board as Non-Executive Directors
  • Appointed Professor Jean-Louis Vincent and Professor Michael Quintel to the Medical Advisory Board

Financial highlights

  • Total operating expenses £5.9 million (2013: £5.7 million) and loss after taxation £5.3 million (2013: £4.8 million)
  • Reduced loss per share 9.0p (2013: 10.1p)
  • Cash and short-term investments at year end of £3.7 million (2013: £9.3 million)
  • Announced today a proposed equity fundraising of up to £13.2 million (before expenses) comprising a Placing of up to £12.0 million and an Open Offer of up to £1.2 million:
    • Arthurian Life Sciences has conditionally agreed to invest £4.0 million – Arthurian Life Sciences manages the Wales Life Sciences Investment Fund, a fund raising up to £100 million and key part of the Welsh Government’s Life Sciences initiative;
    • Woodford Investment Management, on behalf of its clients, has given a non-binding intent to invest up to £4.0 million;
    • New and existing institutional investors have conditionally agreed to invest £4.0 million;
    • The Fundraising is conditional upon fulfilment of certain conditions including, inter alia:
      • minimum gross proceeds of £9.0 million, in aggregate, being raised by the Company pursuant to the Fundraising; and
      • Woodford Investment Management, on behalf of its clients, subscribing in the Placing.
    • The Fundraising is subject to a general meeting to be held on 30 April 2015 with Admission expected on 1 May 2015

 

Commenting on today’s announcement, Dr. Wolfgang Rencken, Chief Executive Officer of Sphere Medical, said:

“We made significant progress in 2014, transforming Sphere Medical from a research and development orientated company into a commercially-focussed medical devices business.

The Company has very clear near-term commercial value drivers: achieve sales revenues for Proxima 3 in the UK and from our initial target European markets – Germany, Netherlands and Belgium; negotiate a commercial deal on Proxima; and launch Proxima 4 in Europe in the first half of 2016.  The recent appointments to our Board of Directors and Medical Advisory Board have further endorsed Proxima as well as bringing considerable experience to assist with the delivery of our well defined commercialisation strategy.

We thank our shareholders for their continued support and look forward to reporting on Sphere Medical’s progress during 2015.”

 

Read Preliminary Results

 

For further information, please contact:

Sphere Medical Holding plc   Tel: +44 (0)1223 875 222

Dr Wolfgang Rencken, Chief Executive Officer        

Matthew Hall, Chief Financial Officer         

Peel Hunt LLP         Tel: +44 (0) 20 7418 8900

James Steel                                                  

Oliver Jackson                                              

Jock Maxwell Macdonald                            

finnCap              Tel: +44 (0) 20 7220 0500

Geoff Nash / Simon Hicks                            

Stephen Norcross                                         

Consilium Strategic Communications  Tel: +44 (0) 20 7920 2333

Mary-Jane Elliott           spheremedical@consilium-comms.com

Amber Bielecka                                            

Matthew Neal                                              

Ivar Milligan  

                                               

Notes for Editors

About Sphere Medical (AIM: SPHR.L)

Sphere Medical is a medical device company developing and commercialising a range of innovative monitoring and diagnostic devices designed to significantly improve patient care.

Sphere Medical's vision is to become a leading solution provider to the critical care market offering innovative, near real time, point of care diagnostic and monitoring products to enable closer control of therapeutic response and improve patient outcomes and reduce the overall cost of care.

The Company’s strategy is focused on developing the Proxima (CE marked device) platform for measuring blood gases, electrolytes and metabolites.  The Company is already marketing its Proxima product directly to the critical care market, which includes the ICU and OR, with a dedicated field sales force in the UK.  Sphere has plans to follow in Germany and Benelux via a direct sales force in Europe and proposes to work with partners for worldwide distribution.

Proxima delivers near real time analysis of blood gases and electrolytes metabolites, at the patient’s bedside.  Proxima can be used on patients across a wide therapeutic range, enabling faster clinical decision making and improved patient outcomes, whilst potentially reducing costs for healthcare payers.

Sphere Medical entered into a collaboration agreement with Ortho-Clinical Diagnostics, Inc. in 2013 for the development of Proxima and enhancement of Sphere's operational and production capabilities.

Sphere Medical has a number of partnerships with industry leading medical device companies and has received a strategic investment from Ortho-Clinical Diagnostics (now part of Carlyle Group).

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