Surgical aims to be in every hospital in Yorkshire

Keyhole surgery toolmaker Surgical Innovations reported a sharp rise in profits thanks to strong sales in the UK and the US.

The Leeds-based firm said its “resposable” instruments are proving very popular in both markets. These part reusable and part disposable instruments consist of a long-lasting reusable element and cheap throwaway parts that are only used once.

Surgical’s chief executive Graham Bowland said the instruments can save £300 per operation – which could offer the NHS savings of tens of millions of pounds.

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The group’s YelloPort keyhole surgery device is a resposable system that is used in gall bladder removal, hernia operations, rectal cases, gynaecology, abdominal surgery and obesity surgery.

“Every procedure we can save them money.

“The NHS is finally realising that,” said Mr Bowland.

“Everyone in the NHS realises the pressure to save money on each procedure.”

Surgical has signed up another 25 hospitals this year and the group has set its distributor a target – to get every hospital in Yorkshire using its products.

“That is the goal of the company as a Leeds-based, Yorkshire-based company – to get all the hospitals in Yorkshire using Surgical’s products and that will save them money,” said Mr Bowland.

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The group is currently in 16 hospitals in Yorkshire. In total there are around 450 hospitals in the UK giving the group a large market to aim for.

The group’s Logi range is also resposable with a reusable handles and disposable scissors on the end.

“The range is going really well in the US,” said Mr Bowland. “We’ve just taken our biggest order.”

The group said the US distribution network’s pace of expansion is exceeding management expectations.

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Following the appointment of Rick Barnett as president of US sales and operations earlier this year, Surgical’s exposure has increased from five to 21 states and the group now covers 2,300 hospitals in the US, up from 600 hospitals.

“We’re really driving the opportunities in the US,” said Mr Bowland.

Surgical said half-year pre-tax profits in the six months to June 30 rose 19 per cent to £570,000.

Revenue rose 28 per cent to £3.9m.

Surgical believes that the US is its largest export opportunity, with 28 per cent of overall revenues generated there in 2012.

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One of Surgical’s key products the Pretzel-Flex, a pretzel-shaped device that can reposition large organs such as the liver during keyhole surgery, has gained FDA approval.

In January, the latest 3mm version of the Pretzel-Flex, which is smaller than previous versions, also received FDA approval to be sold in the US.

Surgical is also using its innovative keyhole surgery techniques to examine jet engines without having to take them apart.

The group is looking at other industrial areas following a new funding deal with its long-standing industrial partner, thought to be Rolls Royce.

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The group said the funding will be used to develop a bespoke solution to allow jet engines to be inspected while they are still on the wing.

The project is due for completion at the end of this year with the opportunity to roll out the devices in 2014.

At the moment the engine has to be completely taken apart and stripped off in order to carry out routine maintenance or fix a problem.

Mr Bowland said: “Our keyhole surgery flexible technology enables us to go into restricted areas, whether they are restricted by space, heat or radiation.

“It helps to reach places where you can’t go.”

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