ResMed to Acquire Propeller Health, a Leader in COPD and Asthma Connected Health Solutions, for $225 Million
December 03 2018 - 9:05AM
Business Wire
- Establishes ResMed as a leader in COPD
patient management, across all stages of the disease
- Propeller Health will operate as a
standalone business, maintaining its COPD and asthma product
solutions, as well as its partnerships with pharmaceutical and
healthcare organizations
ResMed (NYSE: RMD) (ASX: RMD), a leader in 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 Propeller Health, a digital therapeutics
company providing connected health solutions for people living with
chronic obstructive pulmonary disease (COPD) and asthma.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20181203005218/en/
Named a “2017 Most Innovative Company” by Fast Company,
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, 48 percent increase in symptom-free days and 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.
“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.”
“Helping inhaler users improve adherence and avoid
hospitalizations perfectly serves ResMed’s mission: to improve
people’s quality of life, reduce the impact of chronic disease and
save healthcare costs across the out-of-hospital care spectrum,”
said ResMed Respiratory Care President Richie McHale.
“ResMed shares our belief that connected health solutions create
vastly better experiences and outcomes for people with chronic
respiratory disease,” said David Van Sickle, co-founder and CEO of
Propeller. “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.”
Propeller is privately funded, and based in Madison, Wisconsin,
with an office in San Francisco. It will continue to operate as a
standalone business within ResMed’s Respiratory Care portfolio.
There will be no immediate changes to management, locations or
business processes. Van Sickle will continue in his current
role, now reporting to McHale.
Terms of the transaction
Under the agreement terms, ResMed will acquire Propeller for
$225 million, which ResMed will fund 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.
ResMed and Propeller expect to finalize the deal before the end
of the third quarter of ResMed’s fiscal year 2019 (March 30, 2019),
subject to customary closing conditions, including regulatory
approvals.
DLA Piper is serving as ResMed’s legal counsel. Allen &
Company LLC is serving as exclusive financial advisor to Propeller,
and Fenwick & West LLP is serving as its legal counsel.
About ResMed
ResMed (NYSE: RMD) (ASX: RMD), a world-leading connected health
company with more than 6 million cloud-connected devices for daily
remote patient monitoring, changes lives with every breath. Its
award-winning devices and software solutions help 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. ResMed.com
About Propeller Health
Propeller Health is a leading digital therapeutics company
dedicated to the development and commercialization of measurably
better medicines. Propeller creates products to more effectively
treat chronic respiratory disease and improve clinical outcomes for
patients through connectivity, analytics, and companion digital
experiences. The Propeller platform is used by patients, physicians
and healthcare organizations in the United States, Europe and Asia.
For more information, visit www.propellerhealth.com.
Forward-looking statements
Statements contained in this news release that are not
historical facts are "forward-looking" statements as contemplated
by the Private Securities Litigation Reform Act of 1995. These
forward-looking statements – including statements regarding
ResMed’s projections of future revenue or earnings, expenses, new
product development, new product launches and new markets for its
products and the integration of acquisitions – are subject to risks
and uncertainties that could cause actual results to materially
differ from those projected or implied in the forward-looking
statements. Additional risks and uncertainties are discussed in
ResMed’s periodic reports on file with the U.S. Securities &
Exchange Commission. ResMed does not undertake to update its
forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20181203005218/en/
ResMed contactsFor
media:Jayme Rubenstein+1 858.836.6798news@resmed.com
For investors:Amy Wakeham+1
858.836.5000investorrelations@resmed.com
Propeller Health contactMike
Pilarz+1 608.709.8729press@propellerhealth.com
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