BrainZ-GE deal set to spur world sales

Justin Vaughan says the company is all set to expand into Europe. Picture / Richard Robinson

Medical technology company BrainZ Instruments nearly doubled the sales of its brain monitor last year and a new distribution agreement should help drive the global uptake of its technology, the Auckland firm says.

BrainZ sold 74 of the monitors in the year ending August 31 - an increase of 95 per cent on the previous year - with another 19 units sold in the first two weeks of September.

The bedside units are used to monitor new-born babies' brains while in hospital.

All but one of the 19 units sold in September came through a distribution agreement with medical equipment supplier GE Healthcare, which has expanded its exclusive US and UK rights to sell BrainZ's neonatal brain monitor to 35 more territories, including Canada, parts of Europe, Middle East and North African countries.

BrainZ chief executive officer Justin Vaughan said translations in German of its products were prioritised as the first monitors were sold in that country.

"The immediate uptake by four leading hospitals is a fantastic kick-off for us," Vaughan said.

"The scale of GE allows us to roll out our technology through GE's selling channels very efficiently.

"Translated versions in French, Italian, Dutch and Spanish are also nearing completion and should follow with rapid expansion into these markets."

BrainZ would continue to sell its products direct to hospitals in New Zealand, Australia and South Africa, and would also look at expanding into Asia in 2007, he added.

The potential monitor market for newborn intensive care was about A$170 million ($193 million), paediatrics was about $40 million and adult care about $200 million with annual consumable and service sales of A$44 million, A$10 million and A$52 million respectively.

An advisory board was being assembled to help develop a plan for breaking into the adult intensive care treatment.

BrainZ monitors were already being used by Auckland's Starship Hospital in paediatrics, he added.

Meanwhile, the company was working on US Food and Drug Administration clearance for a new mathematical algorithm used to trigger an alarm in the event of a seizure. The software, which uses the algorithm, was launched in New Zealand and Australia in the last few weeks and sold for $5000 per monitor.

BrainZ, which was set up in 2001 to commercialise research from Auckland University's Liggins Institute, was bought by Tru-Test in 2002 and listed on the ASX last December. Tru-Test has retained a 57 per cent stake in the business.