The four-year grant is part of a national $144 million initiative called Pediatric Research using Integrated Sensor Monitoring Systems or PRISMS.
The company's connected devices and mobile apps engage and empower respiratory patients by measuring lung function and tracking adherence.
The two companies have created the platform that combines adherence and lung function measurement with medication management services.
In the game, kids care for their pet's asthma, while learning about inhaler technique and timing, trigger identification and avoidance.
The sensor-laden device with a novel electronic dose counter is currently available for licensing and is expected to enter clinical studies later this year.
Researchers plan to recruit 675 adults to investigate the safety and efficacy of three different treatment regimens for mild asthma.
Patients will have the opportunity to enroll in a new program to determine how Propeller's hi-tech tool can impact adherence rates and patient engagement.
The device's built-in sensors track the date and time when medication is actuated, which is then stored in onboard memory, and shared via Bluetooth.
Together with Allergy & Asthma Network, the company will develop a series of services for people with asthma and allergies.
The funds will be used to expedite an FDA approval for the adult diagnostic test, expand into in-clinic use, and enter European and Asian markets.