Lifeline Scientific, the medical technology company, announces unaudited interim results for
the six months ended 30 June 2008. Lifeline is focused on commercialising its LifePort®
Kidney Transporter, an advanced organ preservation and transport system, designed to
address the global challenge of human donor organ shortages. These are the Company’s first
interim results since its Admission to trading on AIM in January 2008.
• Revenues increase by 27% to $3.5 million (2007: $2.7 million)
• 63% of revenue stemmed from replacement of single use consumable items
• Gross Profit increased by 128% to $1.6 million (2007: $0.7 million)
• Operating loss reduced by 32% to $2.9 million (2007: loss of $4.3 million)
• Cash of $3.1 million at period end
• Admission to AIM completed in January to raise $11 million primarily to fund the latter
phase of pilot introductions and preparations for the the global commercial launch of the
LifePort Kidney Transporter
• Key contracts signed with a number of Canadian transplant centres where LifePort has
already been established as the standard method of kidney preservation
• Further contracts signed with key centres in North America, Europe and Japan
• Approximately 280 LifePorts are now in use globally; 30 were sold in the first half of
• LifePorts are now used in 81 transplant centres, across 16 countries
• Positive further results from the landmark Machine Preservation Trial presented at the
British Transplant Society in London, England; the American Transplant Congress in
Toronto, Canada; and the XXII International Congress of the Transplantation Society in
David Kravitz, Chief Executive of Lifeline, said:
“Lifeline has made significant advances in the first half. We have announced five major
contracts since the completion of the IPO while initial data from the landmark Machine
Preservation Trial has begun to be presented at major transplant symposiums throughout the
“Evidence from clinical trials continues to demonstrate that LifePort can help increase the
quality and quantity of kidneys available for transplantation, improve outcomes for kidney
transplant patients and reduce the overall cost of kidney transplants.
“Trading continues to be in-line with management’s expectations and the Board is confident
of delivering another strong performance in the second half.”
Lifeline Scientific, Inc. 847-294-0300Number?
David Kravitz, CEO
Seymour Pierce (Nomad) +44 (0)20 7107 8000
Mark Percy / Huaizheng Peng / Sarah Jacobs
Financial Dynamics +44 (0)20 7831 3113
Ben Brewerton / John Dineen
About the LifePort Kidney Transporter
Created with the challenges of organ recovery and transport in mind, LifePort Kidney
Transporter is designed to provide improved kidney preservation, evaluation and transport
prior to transplantation. LifePort provides a sealed, sterile, protected environment where a
solution is gently pumped through the kidney at cold temperatures to minimize damage while
the organ is outside the body. LifePort is lightweight and portable, allowing organs to be
perfused from the time of recovery until transplant. It is designed to travel unaccompanied by
land or air, safely transporting the kidneys across town or between countries. While the
kidney is being perfused, the LifePort records data on temperature, flow rate vascular
resistance and pressure every 10 seconds providing surgeons with additional data prior to
transplant. During its pilot introduction, approximately 280 LifePorts have been installed in
81 transplant programmes worldwide treating more than 12,000 kidneys.
About Lifeline Scientific Inc.
Lifeline Scientific, Inc. is a Chicago-based global medical technology company with
European headquarters located in Brussels. Its primary focus is to commercialise its FDA
approved, CE marked, clinically validated and revenue generating LifePort Kidney
Transporter. Devices for preservation of the heart, lung pancreas and liver are in late stage
Chief Executive’s Review
At the end of the period, approximately 280 LifePort Kidney Transporters were in service
within 81 centres and were employed in over 12,000 transplant procedures across 16
countries. Thirty of these LifePorts were sold or leased during the six months ended 30 June
2008. We believe that LifePort is fast-becoming the accepted standard method of preserving
and transporting kidneys from deceased human donors.
Revenues in the period increased by 27% to $3.48 million (2007: $2.74 million) despite a
timing related $72,582 reduction in grant revenue recognition. Although this reflects the sale
of 30 new machines it was also pleasing to see a significant increase in the revenue derived
from the sale of consumable items indicating an increased utilisation of the machines. In
addition to new installations, we are starting to see many early adopters of LifePort expanding
usage across a broad range of deceased donor kidney recoveries. It is anticipated that
additional positive clinical outcomes from the landmark Machine Preservation Trial will be
presented at transplant medicine symposiums throughout the year while publication of trial
outcomes may appear before year end in at least one major peer reviewed medical journal.
The continued dissemination of scientific evidence of LifePort’s ability to improve renal
transplant outcomes and help lower the overall costs of transplant should encourage further
LifePort adoption and usage.
Gross profit increased by 128% reflecting both the increased revenue and an ongoing tight
control of product related labor and material costs which were reduced by $184,668 compared
with the same period last year. Operating loss was reduced by 32% to $2.92 million from
Cash at the end of the period stood at $3.1 million.
In January, Lifeline successfully completed its Admission to AIM raising a total of $11
million. The proceeds have enabled Lifeline to complete important clinical evidence
development and outcomes analysis which upon peer reviewed publication will form the
cornerstone of LifePort’s full commercial product launch.
In March, contracts were secured with two of the world’s largest kidney transplant centres
which are located in the US. These contracts involved the sale of 14 units as well as a
significant volume of consumables each year, as the centres are reported to undertake, on
average, 500 kidney transplantations annually. The contracts also cover ongoing warranty
and maintenance services.
In June, Canada’s largest organ procurement organisation (“OPO”) decided to expand its use
of machine preservation after a successful pilot programme and signed a contract to purchase
a further 6 LifePorts, taking its total to 16 machines. The contract is expected also to involve
the sale of a significant volume of consumable items.
A further 8 LifePorts were sold to transplant centres in North America and Europe for clinical
application and 2 LifePorts were sold to university based research programmes in Japan.
Also, during the second quarter of 2008, initial presentations of one year outcomes data from
the landmark Machine Preservation Trial were given at the American Transplant Congress in
Toronto, Canada and the British Transplant Society in London, England. Positive results were
Since period-end, the Company has announced a further major contract win involving the sale
of an additional 6 LifePorts to the largest organ procurement organization servicing transplant
centres in North Carolina, United States. In addition, further positive data regarding LifePort
from the landmark Machine Preservation Trial were presented in August at the XXII Annual
Congress of the International Transplant Society in Sydney, Australia. The data compared
standard static cold storage with LifePort preserved kidneys and indicated significant benefits
when LifePort was used to preserve and transport kidneys from older and non heart beating
The Company’s Cell and Tissue Systems division continues to further its’ research and
product development efforts principally through grants from the US National Institutes of
Health with emphasis on the development of the LifePort Pancreas Transporter and
proprietary solutions for organ, tissue, and cell preservation.
Bowman Research, the Company’s wholly owned subsidiary remains dedicated to the
development of Ex Vivo Metrics™, proprietary tools employing LifePort based technology
for evaluating the fate and effect of drugs within isolated, perfused human organs which have
been donated for research. Bowman’s efforts will focus on its lung and liver platforms while
seeking third party collaborations and research grants.
Senior Management Changes
Also subsequent to period-end, Lifeline appointed Kerrie Trebonsky CPA, a 20-year veteran
of financial and accounting management, as Corporate Controller. In addition, Lisa Kieres,
MBA, a very experienced CFO who was also a former Lifeline advisor and CFO of Lifeline
for some seven years to August, 2005, and partner in the financial consultancy, Tatum
Partners, has also been retained to oversee the financial and accounting activities of the
Company. Lisa will be taking over from Chuck Beto, VP, Finance and Administration, who
will be leaving the Company during November of this year to pursue other interests.
We are saddened to announce the untimely passing of C. Gerald Curtis, PhD, Chief Science
Officer of our wholly owned subsidiary, Bowman Research. Dr Curtis will be dearly missed
while his scientific contributions will continue on through the Company’s work. The senior
scientific and laboratory management of Bowman’s Chicago office will now be led by Liomar
Neves ,PhD and Yansheng Wei, PhD.
The global shortage in human donors continues to increase with the forecast US and EU
waiting list for a donor kidney to reach close to 100,000 patients by 2014 and demand also
increasing from the major emerging markets. Each year tens of thousands of people die
waiting for a transplant and many more on the waiting list endure inconvenient and expensive
Revenue increased during the period on the back of several major contract wins and the initial
presentation of positive outcomes from the landmark Machine Preservation Trial at major
transplant medical symposiums worldwide. The full product roll out is still at a very early
stage and we believe that strong sales growth can be maintained as transplant centres
throughout the world start to adopt LifePort as their standard practice of kidney preservation.
Lifeline continues to perform in line with our expectations and we are confident of delivering
another strong performance in the second half of 2008.