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Monday, December 3, 2018

ResMed to acquire Propeller Health for $225M


ResMed 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 and asthma. 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. 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. Under the agreement terms, ResMed will acquire Propeller for $225M, 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 1c to 2c during FY19. ResMed and Propeller expect to finalize the deal before the end of Q3 of ResMed’s FY19, subject to customary closing conditions, including regulatory approvals.
https://thefly.com/landingPageNews.php?id=2831235

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