ResMed strengthens COPD play

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Tuesday, December 4, 2018

SAN DIEGO – ResMed has entered into a definitive agreement to buy Propeller Health, a company that provides connected health solutions for people living with COPD and asthma, for $225 million.

The Madison, Wis.-based Propeller makes small sensors that easily attach to inhalers and pair with a mobile app to automatically track medication use, and provide feedback and insights. The company’s ability to support people in stage II and III severity levels of COPD are complementary to ResMed’s own suite of cloud-connected vents for those with stage III and IV COPD and its new portable oxygen concentrator.

“Acquiring Propeller is a significant step for ResMed toward becoming the global leader in digital health for COPD,” said 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.”

Under the terms of the agreement, ResMed plans to buy Propeller for $225 million, primarily using its credit facility. The companies expect to close the deal before the end of the third quarter of ResMed’s fiscal year 2019 (March 30).

Propeller, which also has an office in San Francisco, will continue to operate as a standalone business within ResMed’s Respiratory Care portfolio. David Van Sickle, co-founder and CEO, will continue in his role, reporting to Richie McHale, president of the portfolio.

“ResMed shares our belief that connected health solutions create vastly better experiences and outcomes for people with chronic respiratory disease,” Van Sickle said. “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.”