NORWOOD, Mass.--(BUSINESS WIRE)--Aspect Medical Systems, Inc. (NASDAQ: ASPM - News) today announced that it has signed an exclusive U.S. distribution and technology licensing agreement with LiDCO Group Plc (AIM: LID). Under the terms of the agreement, Aspect will have exclusive rights to sell the LiDCOrapid monitoring system in the U.S. 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. The agreement also allows for non-exclusive distribution of the LiDCOplus system and an exclusive license to integrate LiDCO and BIS® technologies into a combined product for sale in the U.S. In addition, LiDCO Group has granted Aspect warrants in an amount equal to 8% of the outstanding share count of LiDCO Group as of July 28, 2009 at a 20% premium.
“This agreement presents an exciting opportunity for Aspect to further leverage the skills and resources within our organization while providing our customers with what we believe is another high-value perioperative care product that can be used to improve patient outcomes,” said Nassib Chamoun, president and CEO of Aspect Medical Systems. “Anesthesia professionals already rely on BIS technology and vital signs to assess patient status. By adding advanced hemodynamic monitoring, anesthesia professionals gain a more complete view of the patient’s condition and their response to various interventions. Ultimately, we believe that measuring both brain and cardiovascular responses is necessary to optimize patient management and achieve the best patient outcomes.”
The LiDCO hemodynamic monitors can be used for optimizing fluid management of higher-risk patients. Recent British Consensus Guidelines on Intravenous Fluid Therapy for Adult Surgical Patients have recommended that preoperative or operative hypovolemia should be diagnosed and treated on the basis of flow-based hemodynamic measurements, such as those provided by the LiDCO products. In addition, patients undergoing certain procedures should have intraoperative treatment with intravenous fluid to achieve an optimal value of stroke volume, as this may reduce complications and length of stay following surgery.
Commenting on the agreement, Terry O’Brien, PhD, CEO of LiDCO stated, “There is growing demand for an easy-to-use, minimally invasive hemodynamic monitoring product for use intraoperatively. Aspect is an organization with strong U.S. distribution and clinical selling expertise, and is ideally suited to address this demand in partnership with LiDCO. We are pleased to share a common commitment to providing customers with the best possible products to help improve outcomes.”
For the first six months of the distribution agreement, Aspect’s exclusive rights under the agreement in certain US territories are subject to the exclusive rights granted by LiDCO to a third party. The warrants will become exercisable in installments over the next three years based upon Aspect’s achievement of specified purchase minimums.
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.
About LiDCOrapid: LiDCOrapid is a minimally invasive hemodynamic monitoring system designed specifically for use in the operating room. The system acquires continuous blood pressure data from an existing arterial line, which is placed today in approximately 15% of surgical patients, and uses a proprietary “PulseCO” algorithm to calculate parameters related to functioning of the patients’ circulatory system. Anesthesia professionals use these parameters to help guide intraoperative management of the patient and ensure the patient is receiving optimal fluid volume in the bloodstream. More information about the LiDCOrapid can be found at http://www.aspectmedical.com.
About Aspect Medical Systems, Inc.
Aspect Medical Systems, Inc. (NASDAQ: ASPM - News) is a global market leader in brain monitoring technology. To date, the Company's Bispectral Index (BIS) technology has been used to assess approximately 34 million patients and has been the subject of more than 3,300 published articles and abstracts. BIS technology is installed in approximately 78 percent of hospitals listed in the July 2009 U.S. News and World Report ranking of America's Best Hospitals and in approximately 74 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. For more information, visit Aspect's Web site at http://www.aspectmedical.com.
About LiDCO Group Plc
LiDCO is a leading supplier of minimally invasive hemodynamic monitoring equipment and disposables 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, visit http://www.lidcorapid.co.uk/.
Safe Harbor Statement
Certain statements in this release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and may involve risks and uncertainties, including without limitation statements with respect to the expected benefits for patients and providers of hemodynamic monitoring using LiDCO’s LIDCORapid monitoring system. There are a number of factors that could cause actual results to differ materially from those indicated by these forward-looking statements. For example, Aspect may not be able to successfully sell LiDCO’s monitoring system or integrate it into its current or planned product offerings and may not realize any economic or other benefits from the distribution arrangement. Aspect may also not be able to achieve widespread market acceptance of product offerings that incorporate or integrate LiDCO’s hemodynamic monitoring products, or to compete with new products or alternative techniques that may be developed by others, including third-party anesthesia monitoring products approved by the FDA and currently available for sale. There are other factors that could cause Aspect’s actual results to vary from its forward-looking statements, including without limitation those set forth under the heading “Risk Factors” in Aspect’s Annual Report on Form 10-K for the year ended December 31, 2008 and Aspect’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 4, 2009, each as filed with the Securities and Exchange Commission.
In addition, the statements in this press release represent Aspect’s expectations and beliefs as of the date of this press release. Aspect anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while Aspect may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Aspect’s expectations or beliefs as of any date subsequent to the date of this press release.
Aspect, Bispectral Index and BIS are registered trademarks of Aspect Medical Systems, Inc. All other trademarks, service marks and company names are the property of their respective owners.
Aspect Medical SystemsEmily Anderson, firstname.lastname@example.org