Aircraft enters $50m Exclusive Distribution Agreement with LMA North America inc. (Press Release)
Posted on Fri 18th August 2006
Aircraft Medical, the UK medical devices company, which specialises in airway and diagnostic hand held medical devices, has reached an agreement with LMA North America for exclusive distribution rights in the United States for the McGRATH® Series 5 Laryngoscope (the “McGRATH®”), the world’s first self-contained fully portable video laryngoscope. The Directors estimate that the agreement could generate revenues in excess of $50m (£25m) for Aircraft Medical over the next five years. This award winning device was originally designed by Matt McGrath, Aircraft Medical’s CEO.
LMA North America, is the US subsidiary of LMA International NV (“LMA”) which is listed on the Mainboard of the Singapore Stock Exchange and is a global leader in the development and marketing of the of the LMA laryngeal mask airway range of airway management devices.
The 5 year agreement paves the way for Aircraft Medical and LMA North America to implement an agreed sales and marketing plan which includes joint marketing activities and training of sales representatives. The McGRATH® Series 5 will be promoted as an Aircraft Medical product.
The McGRATH® laryngoscope is a hand held medical device, which is used for a common global medical procedure called tracheal intubation. This allows medics to artificially take control of a patients breathing during general anaesthetic.
Of the 100 million general anaesthetics carried out globally per year, approximately 60 million patients are intubated with use of a laryngoscope. The rest will have a Laryngeal Mask fitted, which is a device invented and brought to the market by LMA. The distribution agreement with Aircraft Medical represents a good strategic fit allowing LMA North America to now cover all airway procedures. Airway problems remain the most frequent cause of death and brain damage associated with anaesthesia.
Current working practices in this field use laryngoscopes whose design dates back some 60 years. The McGRATH® represents the most significant advancement in laryngoscope design since the 1940’s and could revolutionise the global practice of intubation.
The key advancement of the McGRATH® is that it provides unrivalled vision of the larynx. This is achieved with an onboard miniature camera and display technology, which none of its competitors has. An image of the larynx is captured by a patented disposable blade and is transferred through the device to a small flat panel screen mounted at the top of the handle. The company believes that this will reduce the risks associated with difficult intubations, which lead to patient trauma, broken teeth, cross infection and in severe circumstances brain damage and death.
Initial marketing of the McGRATH® will be aimed at operating theatre induction rooms (anaesthetists) and emergency medical services as support for difficult intubation cases.
The Company has already obtained CE and FDA approval for its device and will manufacture the device via a subcontract network of UK manufacture partners and foreign suppliers, with final assembly in Scotland.