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LiDCO secures two new contracts in the US as its new offering gains traction

AIM-quoted LiDCO has signed up two more hospitals in the US to its new higher-margin, longer-term High Usage Programme
LiDCO blood flow monitoring screen
The HUP model was launched last summer and allows customers unlimited use of LiDCO’s monitoring products for an annual fee

LiDCO Group PLC (LON:LID) was on the up on Wednesday, after the blood flow monitoring products maker told analysts at a capital markets day that it has won a couple of new contracts in the US.

The AIM-quoted firm has signed up two additional customers to its new High Usage Programme (HUP) – a higher margin business model which requires customers to pay in advance for the products and covers a longer period of time.

Pipeline of opportunities continues to increase

Shares were up 12% in early afternoon trading to 7p.

One of the new customers is a trauma centre in New York, while the other is 1,000+ bed hospital in the Mid-West.

The initial orders are for eight monitors in total, but LiDCO expects this number to grow “significantly” once the hospitals realise the benefits of the technology and the unlimited use of LiDCO’s products.

“HUP is having a transformational impact on our US sales and even with the initial success that we have had so far, year to date recurring revenues are up 95% in local currency versus prior year,” said chief executive Matt Sassone.

“We continue to be encouraged by the positive response to our HUP offering. The pipeline of opportunities continues to increase and as we accelerate the speed of conversion of other prospects in this large and growing market, we are confident that we can take further market share.”

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