ResMed 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. The company has clinically validated its solutions and 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," ResMed CEO Mick Farrell said in a statement. "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."
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.
Under the agreement terms, ResMed will acquire Propeller for $225 million, which ResMed will fund primarily with its credit facility. The two companies 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.