Keyhole surgery unit wins £1.4m US deal

The group’s shares closed up nearly seven per cent at 6.52p last night following the news.

The agreement will see the introduction of Leeds-based Surgical Innovations’ Yelloport, a part- reusable, part-disposable, keyhole surgery system, into surgical trays in the US.

Analysts at Seymour Pierce said in a note: “The securing of this long-term deal with Mediflex, a major US player, demonstrates that Surgical Innovations can deliver.

“We remind investors of the company’s recent positive trading update, noting that the second half of the year has continued to proceed well with group performance in line with market expectations.”

Graham Bowland, chief executive of Surgical Innovations, said: “The partnership with Mediflex broadens the distribution of YelloPort into the large and strategically important US market.

“We are looking forward to working with Mediflex to help surgeons in the US perform less invasive surgery in a cost-effective way.”

Jonathan Adler, president of Mediflex, said: “We are extremely excited to be working alongside Surgical Innovations in developing our Laparo-Logix tray system.

“The agreement creates an exciting partnership between two leaders in design and manufacturing of surgical instruments and technologies.”

Surgical Innovations added that it is making progress across a number of product lines with several potential US customers.

The group said that although it is difficult to determine the eventual structure, timing and value of revenue streams that will be generated, the board will keep shareholders updated on progress.

The keyhole surgery specialist said it traded well in the second half of 2010 and early indications for the full year suggest the group performed in line with market expectations.

The company reported good progress in its “resposable” products, which include both re-usable and throwaway parts.

Surgical has also continued to expand its own branded products.

The group said it is benefiting from a strong underlying business and it is cautiously optimistic going forward, with a number of additional larger prospects in the pipeline for this year.

But it has warned that these contracts can take longer to materialise and are not guaranteed.

Results for the year to December 31 are due to be announced on April 19.

Surgical specialises in the design and manufacture of devices for use in minimally invasive surgery and industrial markets.

It manufactures single-use and re-usable instruments for the laparoscopic market.

It said that its flagship “resposable” instruments would ensure the company’s ongoing revenue streams.

Over 100 people are employed at the group’s 32,000 square feet facility in Leeds, working on in-house design, plastic injection moulding and manufacturing equipment.

Its branded products are sold in North America, Europe, South Africa, the Middle East, South-east Asia and Australia.

Surgical has welcomed the call for more gastric bypass surgery from one of the UK’s leading experts on weight loss.

The group is throwing its weight behind claims by Nick Finer, professor of obesity medicine at University College London, that surgery is a far more efficient method of weight loss than dieting.

Surgical’s chairman Doug Liversidge is calling for the NHS to fund more operations, which would save the service money in the long term.

“There is an economic benefit as well as a physical one,” he said. “Obesity is not just delinquency in eating, it can be a medical condition, both physical and mental, which needs help.”

Nearly all of Surgical’s medical devices can be used in obesity surgery, but the main one is LogiFlex, which uses pioneering technology to help surgeons fit gastric bands or undertake bypass surgery on obese patients.

It is estimated that 250,000 anti-obesity procedures are performed annually in the US, where obesity affects more than 60 million people.

This represents the second largest cause of preventable death.