ResMed to acquire digital therapeutics maker Propeller Health for $225 million, establishing itself as a leader in COPD management.
ResMed, a provider of cloud-connected medical devices and out-of-hospital software-as-a-service (SaaS) business solutions, today announced it has entered a definitive agreement to acquire digital therapeutics startup Propeller Health for $225M. For ResMed, the acquisition will help establish the company as a leader in COPD management across all stages of the disease.
Digital medicines can help to personalize treatments, monitor patients in real-time, detect day-to-day changes in disease condition and increase patient adherence. Founded in 2010, Propeller helps people and their doctors better manage their COPD and asthma. Propeller’s digital medicine platform consists of small sensors that easily attach to consumers’ inhalers and pair with a mobile app to automatically track medication use and provide personal feedback and insights.
Propeller’s clinically validated solutions have demonstrated a 58 percent improvement in medication adherence, a 48 percent increase in symptom-free days and a 53 percent reduction in emergency room visits. Propeller’s ability to support people in stage II and III severity levels of their COPD are complementary to ResMed’s own suite of cloud-connected ventilators for those with stage III and IV COPD, including Astral, Stellar and AirCurve 10 ST-A with iVAPS – plus ResMed’s new portable oxygen concentrator Mobi.
ResMed, known for their connected CPAP and remote patient monitoring solutions helps treat and manage sleep apnea, chronic obstructive pulmonary disease, and other respiratory conditions. Its 6,000-member team strives to improve patients’ quality of life, reduce the impact of chronic disease and save healthcare costs in more than 120 countries.
Propeller Health will Operate as a Standalone Business
As part of the acquisition, Propeller will continue to operate as a standalone business within ResMed’s Respiratory Care portfolio, as well as maintaining its partnerships with pharmaceutical and healthcare organizations. There will be no immediate changes to management, locations or business processes. Propeller CEO Van Sickle will continue in his current role, now reporting to ResMed President Richie McHale.
Financial Details
Under the agreement terms, ResMed will acquire Propeller for $225 million funded primarily with its credit facility. Upon closing, the transaction is expected to have a dilutive impact on ResMed’s quarterly non-GAAP earnings per share in the range of $0.01 to $0.02 during Fiscal Year 2019.
“Acquiring Propeller is a significant step for ResMed toward becoming the global leader in digital health for COPD,” said ResMed CEO Mick Farrell. “By working with Propeller’s existing partners to offer digital solutions for respiratory care pharmaceuticals and building on our proven ability to support digital solutions at scale, we can positively impact the lives of even more of the 380 million people worldwide who are living with this debilitating chronic disease.”
