Cloud-connected medical devices and out-of-hospital software-as-a-service (SaaS) business solutions company ResMed has announced that it is acquiring Madison, Wisconsin-based digital therapeutics company Propeller Health for $225 million. Propeller Health provides connected health solutions for people who live with chronic obstructive pulmonary disease (COPD) and asthma.
Propeller built a digital medicine platform that includes small sensors that easily attach to inhalers. And it pairs with a mobile app for automatically tracking medication use while providing personal feedback and insights. Plus Propeller’s validated solutions have shown a 58% improvement in medication adherence, a 48% increase in symptom-free days, and a 53% reduction in emergency room visits.
“Acquiring Propeller is a significant step for ResMed toward becoming the global leader in digital health for COPD,” said ResMed chief executive 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.”
As Propeller is able to support people in stage II and III severity levels of their COPD, it complements ResMed’s cloud-connected ventilators for people with stage III and IV COPD such as Astral, Stellar, AirCurve 10 ST-A with iVAPS, and ResMed’s portable oxygen concentrator Mobi.
“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.”
ResMed is going to fund this acquisition primarily with its credit facility. Propeller will continue operating as a standalone business within ResMed’s Respiratory Care portfolio. And there will not be any immediate changes to manage, locations, and business processes. Van Sickle will retain his role and report to McHale.