Inogen Completes Acquisition of Physio-Assist
September 18 2023 - 8:30AM
Business Wire
Acquisition Expands Inogen’s Global Respiratory
Care Presence by Addressing the Sizeable, Growing and Underserved
Airway Clearance Market Opportunity
Inogen, Inc. (Nasdaq: INGN), a medical technology company
offering innovative respiratory products for use in the homecare
setting, today announced it has completed the acquisition of
Physio-Assist SAS, expanding the company’s innovative respiratory
portfolio.
Simeox, from Physio-Assist, is a technology-enabled airway
clearance and mucus management device predominantly aimed at
treating bronchiectasis which is a condition that presents as the
lung’s bronchi are damaged and widened, in patients with cystic
fibrosis or chronic obstructive pulmonary disease. Simeox is used
in pulmonary rehabilitation centers, as well as at home.
As a result of the close of the transaction, originally
announced on July 13, 2023, Inogen owns Physio-Assist and will now
market the Simeox device outside of the United States and continue
with ongoing preparations for FDA submission.
“Physio-Assist's Simeox product provides a differentiated and
clinically proven innovative airway clearance technology which will
add a sizable, growing, and underserved airway clearance market
opportunity in support of our strategy to become a multi-portfolio
global respiratory care company. Welcoming Physio-Assist to Inogen
will add the Simeox airway clearance and mucus management solution
to our portfolio and allow us to positively impact patients earlier
in their disease journey,” said Nabil Shabshab, President and Chief
Executive Officer of Inogen. “I am pleased that Inogen can now
deliver a broader set of effective solutions, empowering patients
to better manage their respiratory conditions in the comfort of
their homes while allowing the benefits of ambulation. We are also
excited about Simeox’s revenue model whereby recurring revenue will
be generated by the sale of disposables in addition to the capital
sales per device.”
Simeox has been cleared under CE mark in the EU and is currently
being sold in Europe, Asia, and the Middle East. Inogen will
leverage its commercial infrastructure and capabilities to continue
marketing the device in these geographies while pursuing US
regulatory approvals. The acquisition may provide access to a large
and growing market opportunity with 400,000 to 490,000 patients
suffering from bronchiectasis in the US eventually.
As previously communicated, the acquisition is expected to be
immaterial to Inogen’s 2023 revenue and immediately accretive to
gross margin. Given the clinical and commercial investment required
to obtain FDA clearance and launch Simeox in the US, the
transaction is expected to be accretive to adjusted earnings
beginning in 2027.
About Inogen
Inogen, Inc. (Nasdaq: INGN) is a leading global medical
technology company offering innovative respiratory products for use
in the homecare setting. Inogen supports patient respiratory care
by developing, manufacturing, and marketing innovative
best-in-class portable oxygen concentrators used to deliver
supplemental long-term oxygen therapy to patients suffering from
chronic respiratory conditions. Inogen partners with patients,
prescribers, home medical equipment providers, and distributors to
make its oxygen therapy products widely available allowing patients
the chance to remain ambulatory while managing the impact of their
disease.
For more information, please visit www.inogen.com.
Inogen has used, and intends to continue to use, its Investor
Relations website, http://investor.inogen.com/, as a means of
disclosing material non-public information and for complying with
its disclosure obligations under Regulation FD. For more
information, visit http://investor.inogen.com/.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including, among others, Inogen’s expectations for patient
care with the Simeox device, and forecasted impact to revenue and
earnings. Any statements contained in this communication that are
not statements of historical fact may be deemed to be
forward-looking statements. Words such as “believes,”
“anticipates,” “plans,” “expects,” “will,” “intends,” “potential,”
“possible,” and similar expressions are intended to identify
forward-looking statements. Forward-looking statements are subject
to numerous risks and uncertainties that could cause actual results
to differ materially from currently anticipated results, including
but not limited to, risks arising from the possibility that Inogen
will not realize anticipated revenue or expenses will not decrease;
risks related to cost inflation; the risks our innovation pipeline
will not produce meaningful results; risks related to our pending
acquisition of Physio Assist including on expenses; the impact of
changes in reimbursement rates and reimbursement and regulatory
policies; and the possible loss of key employees, customers, or
suppliers; the risk that expenses and costs will exceed Inogen’s
expectations. Information on these and additional risks,
uncertainties, and other information affecting Inogen’s business
operating results are contained in its Annual Report on Form 10-K
for the year ended December 31, 2022, its Quarterly Report on Form
10-Q for the calendar quarter ended June 30, 2023, and in its other
filings with the Securities and Exchange Commission. These
forward-looking statements speak only as of the date hereof. Inogen
disclaims any obligation to update these forward-looking statements
except as may be required by law.
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