A Medical Device Daily

Aspect Medical Systems (Norwood, Massachusetts) has signed an exclusive U.S. distribution and technology licensing agreement with LiDCO Group (Cambridge, UK).

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/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.

Terry O'Brien, PhD, CEO of LiDCO said, "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 U.S. 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.