Aircraft Medical targets $4bn market through major US distribution deal

Fife-based Aircraft Medical has signed up New York-listed Covidien, one of the world’s biggest medical technology firms, to sell its latest product in the US, the UK and four other territories.

The deal doubles the size of the worldwide sales force to 500 for the firm’s device, a video “laryngoscope” that helps doctors to see down a patient’s throat when inserting a breathing tube. Aircraft founder and chief executive Matt McGrath told The Scotsman: “This is a multi-million dollar contract. We’re excited because it will give a substantial uplift to sales in the short term.

“This is a major milestone in our strategy to be a leader in the development of the video laryngoscope market. Our product together with our distribution partners is a strong combination that should help to grow the market.”

The latest “McGrath Mac” video laryngoscope will be launched this weekend in Chicago at the annual meeting of the American Society of Anesthesiologists, the largest gathering of its type. The previous, higher-cost version of the instrument, the Series 5, is already on sale in the US.

McGrath added: “We were approached by a number of companies to distribute our new product but, with Covidien, we believe we’ve found the right partner, with both of us putting in a great deal of resources.”

Covidien has 41,000 staff worldwide and turned over $10.4bn last year. McGrath has never revealed sales or profit figures for Aircraft, but he said he would increase the firm’s headcount at its base in Dalgety Bay from the present 40 as the business grows in time.

Abbreviated accounts filed at Companies House showed that the firm’s total assets rose from £2.6 million in 2008 to £3.5m in 2009, the last year for which the figures were available.

McGrath founded the company in 2001 and moved it from Edinburgh to Fife last year.

He remains the majority shareholder with a 60 per cent stake, with Scottish Enterprise holding a 4 per cent share, while Wellcome Trust has also backed the company. Other shareholders include Aircraft’s staff and a large number of “individual private investors from the technology and life sciences industries”, McGrath said.

Aircraft had been tipped to float on the Alternative Investment Market (Aim) in 2006 before the credit crunch by its then chairman John Pool.

But McGrath yesterday said: “Any flotation is way down on our ‘to do’ list. It’s not on the cards just now, but I wouldn’t rule it out for the future – if we needed more money for a specific project, then I would consider floating the company, along with other ways of raising cash.

“But we have enough funding right now and so we’re focused on growing our market share.”.