BrainZ expands US operations

Auckland-based BrainZ (ASX:BZI) has established its US clinical support team and headquarters.

BrainZ listed on the ASX in mid December 2005 and successfully raised $13 million through its IPO to finance the international expansion of the BrainZ business and to optimise its relationship with its distributor GE Healthcare.

"We are trekking along the path of building the US team and capitalising on the market", said BrainZ CEO Justin Vaughan. "The support team is comprised of ten experienced neonatal nurse clinicians employed on a part-time basis - they are all based at home and give us good inroads into the West Coast, Texas - central Mid West, and Florida. We are happy with the coverage and we will evaluate the success in three to six months."

The support team will provide expert training and educational services to hospitals adopting the BrainZ BRM bedside brain monitoring technology, actively supporting the sales efforts of GE Healthcare.

In October 2004, BrainZ signed a two-year US distribution agreement with GE Healthcare to distribute the BRM2 Brain Monitor throughout the US with rights for other major markets.

The BrainZ clinical support team underwent product training prior to the inaugural international 'Neonatal Brain Monitoring Conference', held in Florida from January 30 - February 1 which included attendees from over 15 countries. According to Vaughan this conference is a strong indication of the rapidly increasing acceptance of bedside brain monitoring technology throughout the world and Brainz is currently progressing multiple strong sales leads produced as a result of attending the conference.

"It is great that we could do [the training] around the conference that happened in Florida a couple of weeks ago. Usually the topic of monitoring is covered at neonatal and pediatric conferences, but so much discussion has taken place about this type of monitoring that its own conference has been created," he said.

BrainZ has also established its US headquarters based in Columbia, Maryland and recruited two office staff to support team leader Richard Smith, executive vice president, who previously held senior management positions at several leading medical device companies, including GE Healthcare.

According to Vaughan the expansion of BrainZ in US has also been assisted through the company's acceptance into New Zealand Trade and Enterprise's 'Beachheads Programme', in December last year.

"The programme is for companies looking to expand into major markets -- the US, UK and now the Middle East. They give two types of support, they will cover 50 per cent of office costs for two years and also assist with people on the ground who have networks and contacts. They have a one to one funding basis and we will get to a maximum of NZ$30,000 (AUD$27,400)."

Vaughan also indicated that the company will review its UK and European staff later in the year.

"We have relocated two full time staff to London -- the sales manager is co-habiting with GE in North London and we will review getting our own team and space -- the US is the target for the next quarter and we will then evaluate Europe after that," he said.