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UPDATE - Sphere Medical to launch Proxima 3 in Europe in March

Last updated: 10:46 26 Jan 2015 GMT, First published: 11:46 26 Jan 2015 GMT

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Sphere Medical (LON:SPHR) is getting closer to commercialising its Proxima 3 blood monitoring device in Europe, it told investors in an update Monday.

The product will be launched at the ISICEM (International symposium on intensive care and emergency medicine) in Brussels in March 2015 and sales will initially be targeted in Holland. Belgium and Germany.

It comes after the device made its debut on the UK market in September last year, The company said the aim of building an active customer base leading to recurring revenues is on track.

The Queen Elizabeth Hospital in Birmingham intends to purchase the devices and there are more than 20 prospects in the sales pipeline of which 10 product evaluations on patients are planned in the first quarter of 2015, the group said.

Sphere Medical's chief executive 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."

The firm had cash as at December 31, 2014 of £3.7mln.

House broker Peel Hunt, which rates the shares a 'buy', said the Queen Elizabeth in Birmingham had one of the largest critical care departments in Europe and has been a long-term development partner for the Proxima system.

"The development of Proxima 4 is progressing satisfactorily and Sphere had £3.7m in cash at the end of 2014.

"The shares continue to trade at a material discount to invested capital and to our long-term DCF analysis," it said, giving a price target of 109p.

Shares are unchanged at 23p each.

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