LiDCO Group is a healthcare company specialising in advanced minimally invasive cardiovascular monitoring. Admitted to AIM in July 2001, it has high hopes of growing its sales in both the UK and the US markets, as well as Europe and the Far East.
A Discreet warehouse in Hoxton, East London, houses some of the most sophisticated medical equipment around. It is the headquarters of LiDCO which researches, develops, manufactures and sells medical devices mainly for critical care and cardiovascular monitoring.
LiDCO was founded in 1991 by a group of four scientists and doctors, together with King’s College, London. The core sensor technology is based on the detection of an injected dose of lithium chloride in arterial blood – the degree of dilution allows the calculation of the blood flow from the heart and, most importantly, oxygen delivery to the body. The company’s products are promoted as very safe, since cardiac patients already have arterial blood pressure catheters in place, and the amount of blood taken from the body is very small.
Prior to joining AIM, LiDCO had completed a number of private placements raising £9.6 million, predominately in the US and UK. This money enabled LiDCO to lease its current headquarters, build the necessary manufacturing facilities and register its products with the UK authorities and the US Food and Drug Administration. The company accomplished all of this at a cost of £6.8 million over a period of 10 years. Terry O’Brien, chief executive and founder, explains that the company chose AIM because it wanted to raise sufficient funds to build strong sales teams in both the UK and the US, expand its facilities and offer staff share options.
LiDCO considered several exchanges but decided none met its needs as well as AIM. It wanted to raise £20 million and considered AIM to be the most suitable market.
O’Brien found the process of coming to market efficient, but it required a dedicated team effort. The company took only 10 weeks from making the initial decision and appointing sponsor and broker Teather & Greenwood, to quotation. The process was made smooth by having excellent support from the sponsor bank and the first class advisers, particularly vital when it came to writing the prospectus, where strong advice from its solicitors, Herbert Smith, and auditors, Deloitte & Touche, proved essential.
LiDCO successfully raised its funds, despite joining AIM at a time when the UK IPO window was rapidly closing. Its sales team is now actively selling on both sides of the Atlantic, managing to sell 128 monitors from flotation up until 31 December 2001. As a result of its quotation, the company has now raised its profile among its customers and peers in the medical industry.
O’Brien is an advocate of intensive investor relations activity and he finds it an advantage being London-based, because he can reach 90% of the company’s institutional investors with ease. Meanwhile, private investors can access its corporate website ( www.lidco.com) which maintains an active news flow.
O’Brien concluded: “Ten years ago raising money in the UK was exceedingly difficult. The development of AIM has been exciting to watch and has provided an ideal and well-regulated early stage public market for LiDCO. The various tax reliefs now available for both individuals and institutions will further underpin the attractiveness of AIM.”
Facts & Figures
Company: LiDCO plc
Location: London
FTSE Sector: Medical Equipment & Supplies
Date of admission: 5 July 2001
Market value 31 Mar 2003: £4.81m
Web address: www.lidco.com
Source: Publicity, May 2002