Connected health company ResMed has agreed to acquire US-based digital therapeutics firm, Propeller Health, in a deal worth $225m.
Image: ResMed has agreed to acquire digital therapeutics firm Propeller Health. Photo: courtesy of rawpixel / Unsplash.
Based in Madison of Wisconsin, Propeller Health offers connected health solutions for people with chronic obstructive pulmonary disease (COPD) and asthma.
ResMed CEO Mick Farrell said: “Acquiring Propeller is a significant step for ResMed toward becoming the global leader in digital health for COPD.”
Propeller Health’s digital medicine platform includes small sensors, which can be attached to consumers’ inhalers and combined with a mobile app to automatically track medication use and offer personal feedback and insights.
According to ResMed, Propeller’s clinically validated solutions have showed a 58% improvement in medication adherence, 48% increase in symptom-free days and 53% reduction in emergency room visits.
Propeller’s solutions supporting people in stage II and III severity levels of their COPD are complementary to ResMed’s own suite of cloud-connected ventilators for people with stage III and IV COPD, Astral, Stellar and AirCurve 10 ST-A with iVAPS and portable oxygen concentrator Mobi.
ResMed CEO Mick Farrell said: “Acquiring Propeller is a significant step for ResMed toward becoming the global leader in digital health for COPD.”
Subject to customary closing conditions, the deal is expected to complete by the end of the third quarter of ResMed’s fiscal year 2019.
As per terms of the deal, Propeller will continue to run as a standalone business within ResMed’s respiratory care portfolio.
Propeller Health co-founder and CEO David Van Sickle said: “ResMed shares our belief that connected health solutions create vastly better experiences and outcomes for people with chronic respiratory disease.
“Joining forces enables us to accelerate the adoption of Propeller’s solutions at a global scale, and serve as a powerful platform for a broad set of pharmaceutical and healthcare partners.”
Last month, ResMed has completed the acquisition of post-acute care software provider MatrixCare for $750m.
Based in Minnesota, MatrixCare offers services such as point of care, lead and referral management, claims processing, payroll and nutrition management and others.
ResMed provides cloud-connected medical devices and out-of-hospital software-as-a-service (SaaS) business solutions, which will help treat and manage sleep apnea, chronic obstructive pulmonary disease and other respiratory conditions.