Tactile Medical buys AffloVest

MINNEAPOLIS – Tactile Medical has acquired the assets of the AffloVest respiratory therapy business from International Biophysics Corp., a privately held company that developed and manufactures the portable, wearable vest. 

AffloVest is used to treat patients with chronic respiratory conditions such as COPD-associated breathing conditions like bronchiectasis, or conditions resulting from neuromuscular disorders and cystic fibrosis, by managing airway clearance. 

“The addition of AffloVest represents an ideal strategic fit for Tactile Medical as it aligns well with our focus of treating patients with underserved chronic conditions in the home,” said Dan Reuvers, president and CEO of Tactile Medical. “We expect to promote AffloVest’s patented, portable design, demonstrated clinical outcomes, and established reimbursement within the DME channel to drive AffloVest to contribute to our overall company goal of 20%-plus revenue growth going forward. Like lymphedema, the chronic pulmonary disease market represents a large, and still underpenetrated opportunity. Importantly, multiple members of our management team have significant experience in this category, which gives us confidence in our ability to execute our commercial strategy for AffloVest.” 

Tactile Medical has financed the transaction through a combination of cash on hand and $55 million of borrowings under its existing credit facility, which is being amended in connection with the transaction.  

The company says its strategic rationale for acquiring AffloVest includes adding a $5 billion annual addressable market opportunity in the United States, with expected gross margins above 70% and adjusted EBITDA margins of more than 30%. 

Tactile Medical’s offerings include pneumatic compression devices, as well as continuity of care services provided by a national network of product specialists and trainers, reimbursement experts, patient advocates and clinicians.