• 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
SAN DIEGO-Wednesday 5 December 2018 [ AETOS Wire ]
(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.
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.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181203005218/en/
Contacts
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
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