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Establishes ResMed as a leader in COPD patient management, across
all stages of the disease
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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
SAN DIEGO--(BUSINESS WIRE)--
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.
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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.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20181203005218/en/
ResMed contacts
For media:
Jayme
Rubenstein
+1 858.836.6798
news@resmed.com
For investors:
Amy Wakeham
+1 858.836.5000
investorrelations@resmed.com
Propeller Health contact
Mike
Pilarz
+1 608.709.8729
press@propellerhealth.com
Source: ResMed