29 Jul 2009 07:00
| Press Release | 29 July 2009 |
LiDCO Group Plc
("LiDCO" or the "Company")
Exclusive, US-wide distribution agreement
and collaboration agreement with Aspect Medical Systems
LiDCO Group Plc (AIM: LID), the cardiovascular monitoring company, is pleased to announce it has signed an exclusive distribution agreement for the LiDCOrapid Monitor with Aspect Medical Systems ("Aspect"), a pioneer and global market leader in monitoring technology for surgery. The agreement will cover the whole of the United States and fits with LiDCO's ongoing strategy of increasing sales by predominantly using a distribution route to market.
This agreement will give LiDCO access to the US anaesthesia and surgery markets in which, importantly, Aspect is already well established. LiDCO will also benefit from Aspect's sales, sales management and clinical educator force of over 90 staff. Aspect has one of the biggest anaesthesia medical product sales teams in the US and currently sells into over 80% of operating rooms in major hospitals. As part of the agreement Aspect will take on a number of LiDCO's U.S. based sales team, saving the Company approximately $0.85m per year. In addition, Aspect will pay an upfront license fee of US$1.15 million.
The LiDCOrapid system, comprised of a monitor and single use disposable, is designed for use in the operating room to provide clinicians with accurate and immediate feedback on the patient's fluid and hemodynamic status. There are considerable synergies between Aspect's Bispectral Index (BIS) product, which ensures the correct depth of anaesthesia is achieved, and the use of the LiDCOrapid Monitor, which is used while the patient remains under anaesthetic to restore blood pressure and cardiac output to pre-surgery levels. Accordingly, the agreement also grants an exclusive license to Aspect to engage in the development of a new combined and unique monitoring product for sale in the US that will integrate LiDCO and Aspect's monitoring and signal processing technologies.
Upon meeting its first year sales targets, Aspect will be awarded share warrants over 4% of the equity, which will increase by a further 4% if second year sales targets are achieved. These warrants will be exercisable at a 20% premium to the average share price between 14 July and 11 August 2009.
Dr Terry O'Brien, CEO of LiDCO, commented: "Aspect is the leader in the depth of anaesthesia market and has developed a strong US distribution sales force. Importantly, Aspect has a proven ability to build market share with new technology and has the capital resources to participate in this growing market. This agreement will give Aspect a second product and significantly improve LiDCO's level of US sales coverage while reducing our cost base. With Aspect we have terrific reach into the US market. Together we can provide customers with two of the best monitoring products available, helping to make anaesthesia safer and improve surgical outcomes."
Nassib Chamoun, President and CEO of Aspect Medical Systems, commented "This agreement presents an exciting opportunity for Aspect to further leverage the skills and resources within our organisation while providing our customers with another high-value perioperative care product that we believe can be used to improve patient outcomes. Anaesthesia professionals already rely on BIS technology and vital signs to assess patient status. By adding the ability to look at advanced hemodynamic monitoring and the heart's response to anaesthesia and fluid management, we can provide anaesthesia professionals with a more advanced and complete view of the impact of various anaesthetic management interventions. Ultimately, we believe that measuring both brain and cardiovascular responses is necessary to achieve the best patient outcomes."
Aspect will show case the LiDCOrapid Monitor at the American Society of Anaesthesiologists in October, in New Orleans. The current distribution agreement with LiDCO's existing U.S. distributor will be terminated with an appropriate handover period.
Aspect will also have the non-exclusive right to distribute the intensive care product, the LiDCOplus, throughout the US. The LiDCOplus will continue to be sold directly by the remaining LiDCO sales team.
- ENDS -
For more information please contact:
| LiDCO Group Plc | |
| Terry O'Brien - Chief Executive John Rowland - Company Secretary | Tel: +44 (0)20 7749 1500 www.lidco.com |
| FinnCap | |
| Geoff Nash / Marc Young / Stephen Norcross | +44 (0)20 7600 1658 www.finncap.com |
Media enquiries
| Abchurch Communications | |
| Heather Salmond / Stephanie Cuthbert / Simone Alves | +44 (0)20 7398 7728 www.abchurch-group.com |
| simone.alves@abchurch-group.com |
About LiDCO Group Plc
LiDCO is a leading supplier of minimally invasive hemodynamic monitoring equipment and disposables. These are used primarily for the management of hospital patients requiring critical care or at major cardiovascular risk. LiDCO's computer-based technology significantly reduces the complications (particularly infections) and costs associated with major surgery. The technology was invented in the Department of Applied Physiology based at St Thomas' Hospital, London. LiDCO is based in the UK and its shares are traded on AIM. For more information please see www.lidco.com.
The Company's manufacturing facility is in Hoxton, London and its current products are:
* LiDCOplus and PulseCO monitors: these computer-based platforms are used in the Intensive Care Unit for real-time continuous display of hemodynamic parameters including cardiac output, oxygen delivery and fluid volume (PPV% and SVV%)
* LiDCO disposables: used in conjunction with the LiDCOplus Monitor for accurate measurement of cardiac output in a minimally invasive manner
* LiDCOrapid monitor: our new cardiac output monitor designed specifically for use in the Operating Theatre for fluid and drug management at the point of care
* LiDCOview: an easy-to-use graphical display of historical LiDCOplus hemodynamic data. Both clinical researchers and routine users can view beat-to-beat hemodynamic data collected with the LiDCOplus.
* LiDCOlive: a software product in development for the remote display of hemodynamic monitoring parameters derived through use of the LiDCOplus or LiDCOrapid monitors
Distribution Network: The Company. sells direct in the UK and elsewhere predominantly through a worldwide network of speciality critical care and anesthesia distributors.
About Aspect Medical Systems, Inc.
Aspect Medical Systems, Inc. (NASDAQ: ASPM) is a global market leader in brain monitoring technology. To date, the Company's Bispectral Index (BIS) technology has been used to assess approximately 32 million patients and has been the subject of more than 3,100 published articles and abstracts. BIS technology is installed in approximately 80 percent of hospitals listed in the July 2008 U.S. News and World Report ranking of America's Best Hospitals and in approximately 73 percent of all U.S. operating rooms. In the last twelve months BIS technology was used in approximately 19 percent of all U.S. surgical procedures requiring general anesthesia or deep sedation. Aspect Medical Systems has OEM agreements with eight leading manufacturers of patient monitoring systems.
About BIS Monitoring: Using a sensor placed on the patient's forehead, BIS monitoring translates information from the electroencephalogram (EEG) into a single number that represents each patient's level of consciousness. This number - the BIS value - ranges from 100 (indicating an awake patient) to zero (indicating the absence of brain activity). Using the BIS value to guide administration of anesthetic medication, in conjunction with other vital signs, allows clinicians to make better informed decisions to achieve optimal anesthesia.