LID.L Regulatory News (LID)

LiDCO Group Plc

("LiDCO" or the "Company")

HUP progress update

Significant new US HUP contract win

LiDCO (AIM: LID), the hemodynamic monitoring company, announces that it has had further success in the USA contracting a large public university medical centre in Southern California to its differentiated High Usage Programme (HUP) business model. The customer has signed a five-year agreement for 15 monitors, fully converting from their current hemodynamic monitoring provider.

The centre is a recognised thought leader in the US in the treatment of Sepsis, the leading cause of death in hospitals and re-admissions. Sepsis is the number one cost of hospitalisation in the U.S. estimated at more than $27 billion each year1. LiDCO's technology has been strongly associated with successful treatment protocols for this patient population and there are a number of clinical papers demonstrating the benefits of using LiDCO technology within this patient group. In one such study2, Hata et al investigated the mortality of 237 patients who developed Sepsis, the research group concluded using the LiDCO technology in this high-risk patient group reduced mortality by 24% through better management and early detection.

HUP continues to build momentum in the US. Since the start of the calendar year the Company has now won three new HUP customers, signing contracts for 38 monitors with an annualised revenue of $0.5m. Since launching the HUP programme in July 2017, the Company now has 129 HUP monitors in the US generating contracted annualised recurring revenues in excess of $1.5m. This greatly enhances revenue visibility and reduces the challenges of closing orders around the year-end.

Commenting on the US progress, Matt Sassone, Chief Executive Officer of LiDCO, said: "HUP is having a transformational impact on our US sales. The feedback to this differentiated offering is excellent. We have learnt to better manage the lengthy purchasing cycles and it's excellent to see a strong start to the year as we make further progress in converting the large pipeline of opportunities. This win is another endorsement of our ability to take further market share and build a recurring revenue base in the world's largest medical device market."

1 Trends in Hospital Inpatient Stays in the United States, 2005-2014 McDermott et al June 2017

2 Hata J, Stotts C, Shelsky C, Bayman E, Frazier A, Wang J, Nickel E. Reduced mortality with noninvasive hemodynamic monitoring of shock. J Crit Care. 2011;26(2):224.E1

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About LiDCO Group Plc (www.lidco.com)

LiDCO is a supplier of non-invasive and minimally invasive hemodynamic equipment to hospitals used to monitor the amount of blood flowing around the body and ensure that vital organs are adequately oxygenated. LiDCO's products facilitate the application of hemodynamic optimisation protocols for high risk patients in both critical care units and in the operating theatre. 

Increasingly clinical studies are showing that the optimisation of patients' hemodynamic status in high risk patients produces better outcomes and reduced hospital stay. LiDCO's computer-based technology, originally developed at St Thomas' Hospital in London, has been shown to significantly reduce morbidity and complications, length of stay and overall costs associated with major surgery.

Key Products:

LiDCOunity: a hemodynamic monitor that combines the full suite of LiDCO technology (non-invasive, minimally invasive and calibrated technologies) into one platform. Designed to have the flexibility to adapt to a patient's changing acuity, the product enables clinicians to seamlessly transition between non-invasive, minimally invasive and calibrated hemodynamic monitoring. Version 2 of this software is only available on a new slim widescreen monitor and includes the optional high usage program software in selected markets.

LiDCOplus: a computer-based platform monitor used in the Intensive Care Unit for real-time continuous display of hemodynamic parameters including cardiac output, oxygen delivery and fluid-volume responsiveness.

LiDCOrapid: a cardiac output monitor designed specifically for use in the operating theatre for fluid and drug management. The monitor enables anaesthetists to receive accurate and immediate feedback on the patient's fluid and hemodynamic status - a key measure of overall well-being before, during and after surgery. The LiDCOrapid provides:

· early and rapid warning of hemodynamic change to aid choice of therapeutic route: fluid or drug

· quantification of hemodynamic response guidance on effective delivery of fluids to ensure the right amount at the right time

The software incorporated into LiDCOrapid allows the LiDCOrapid monitor to co-display Medtronic's level of consciousness parameter ('BISTM')* and add the convenience of CNSystem's continuous non-invasive blood pressure monitoring ('CNAP')**. This addresses a growing requirement for non-invasive monitoring solutions that are more comprehensive and can effectively replace multiple single parameter monitors. 

LiDCOview: an easy-to-use graphical display of historical LiDCOplus and LiDCOrapid hemodynamic data.

*BISTM and Bispectral Index are trademarks of Medtronic registered in the US and foreign countries.

**CNAPTM is a trademark of CNSystems Medizintechnik AG.

LiDCO monitors use single-patient disposables (sensors or smartcards) which provide an ongoing revenue stream.

LiDCO Distribution Network:

LiDCO sells directly to hospitals in the UK and USA and through a network of specialty critical care and anaesthesia distributors in the rest of the world.

LiDCO's headquarters are in London and its shares are traded on AIM.