Hill-Rom Acquires Breathe Technologies for $130 Million to Expand Wearable Ventilation Portfolio

On August 2, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Hill-Rom had announced the signing of a definitive agreement to acquire medical device company Breathe Technologies for $130 million, thereby enhancing its wearable non-invasive ventilation technology and expanding its respiratory care product portfolio. Hill-Rom expects the transaction to close in the fourth quarter of fiscal year 2019, subject to customary closing conditions.

Breathe Technologies, founded in 2005 and headquartered in Irvine, California, USA, is a company that provides innovative medical technologies for patients with respiratory insufficiency and neuromuscular diseases. Breathe Technologies boasts a robust product portfolio dedicated to enabling people to lead healthier lives and addressing unmet clinical and economic needs in the field of respiratory care. The company generates annual revenue of approximately $10 million.

Leveraging Breathe Technologies’ proprietary Life2000® ventilation system, the company developed the market’s first truly wearable ventilator. This device provides patients with continuous ventilation and enhances their mobility.

The Life2000® Ventilation System is a compact, wearable, non-invasive mechanical ventilation system designed for the management of various conditions in both home and intensive care unit settings, including chronic obstructive pulmonary disease (COPD), interstitial lung disease, restrictive thoracic disorders, and post-lung transplant rehabilitation. The wearable Life2000® ventilator is separated from the stationary Life2000® compressor, allowing patients to move freely indoors or use an alternative pressure source for outdoor mobility.

The Life2000® Ventilation System has received 510(k) clearance from the U.S. Food and Drug Administration (FDA). Breathe Technologies holds more than 100 patents domestically and internationally, including a patent for a nasal pillow interface that enhances patient mobility and quality of life.

Hill-Rom, founded in 1929 and headquartered in Batesville, Indiana, USA, is a world-leading medical technology company. The company employs more than 7,000 people across over 100 countries worldwide. Hill-Rom’s product portfolio includes patient support systems, safe patient handling and mobility solutions, non-invasive therapeutic products for various acute and chronic conditions, medical equipment rental, surgical products, and information technology solutions.

Hill-Rom offers a wide range of products and services for acute care, long-term care, and home care settings, under multiple brands including Hill-Rom, Liko, Trumpf Medical, Aspen, and Allen. Products and services provided by Hill-Rom include: facility assessments, patient care beds, stretchers, therapeutic mattresses, sequential compression devices, nurse call systems, workflow systems, bed-head medical service units, and hospital room furniture.

“Acquiring highly differentiated, wearable non-invasive ventilation technology provides us with a growth platform that can leverage our direct respiratory care commercial channels and business model,” said John Groetelaars, President and Chief Executive Officer of Hill-Rom. “This transaction is another example of our strategic capital deployment, as we rigorously expand into high-growth, high-margin business areas by entering the disruptive new field of non-invasive ventilation.”

(Compiled by Cheng Tao)