LiDCO Group Plc End of third party UK Distribution agreement (2073I)

TIDMLID

RNS Number : 2073I

LiDCO Group Plc

20 March 2018

LiDCO Group Plc

("LiDCO" or the "Company")

End of third party UK Distribution agreement

LiDCO (AIM: LID), the hemodynamic monitoring company, announces that after seven years of LiDCO distributing Argon Medical Devices, the new owners of the business have given notice to terminate the distribution contract, which will end on 30 September 2018.

In the last financial year, Argon products contributed GBP1.4 million to the overall sales of LiDCO at 20% gross margin (compared to 79% margins from LiDCO products in financial year 2016/17). Given the timing of the termination and the low margin achieved, this is not expected to have a material impact on LiDCO's results for the year ending 31 January 2019. Furthermore, LiDCO is in discussions with a number of companies about other distribution opportunities to take advantage of its sales reach in the UK, which the company hopes will attract higher margins.

In February 2017, Merit Medical Systems, Inc. ("Merit") acquired Argon Medical Devices Inc.'s ("Argon") critical care business. Merit has a significant sales presence in the UK and, in accordance with the terms of the contract, Merit has provided LiDCO with the required notice period to terminate the contract on 30 September 2018. Separately, Merit has indicated that it would like to have discussions to ascertain whether there is a role for LiDCO to have in the UK distribution of Argon products after the termination of the current distribution contract.

This change does not affect the recently announced appointment of Merit Medical Japan as LiDCO's distributor in that market.

More information about LiDCO can be found on the Company's website www.lidco.com

Commenting on the distribution agreement, Matt Sassone, Chief Executive Officer of LiDCO, said: "This change is understandable given the change of ownership and Merit's sales resources in the UK. We have already had discussions with a number of companies about other opportunities and expect to announce further distribution arrangements that complement our approach in the UK before the end of the current financial year."

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR").

For further information, please contact:

 
 LiDCO Group Plc                          www.lidco.com 
 Matt Sassone (CEO)            Tel: [phone] 
  Jill McGregor (CFO) 
 
 finnCap                       Tel: [phone] 
 Geoff Nash / Emily Watts 
  (Corporate Finance) 
 Stephen Norcross (Corporate 
  Broking) 
 
 Walbrook PR Ltd                  Tel: [phone] or 
                                   [e-mail] 
 Paul McManus                        Mob: [phone] 
 Lianne Cawthorne                    Mob: [phone] 
 

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 ('BIS(TM') )* 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.

*BIS(TM) and Bispectral Index are trademarks of Medtronic registered in the US and foreign countries.

**CNAP(TM) 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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March 20, 2018 03:00 ET (07:00 GMT)