ResMed Acquires Propeller Health for $225 Million to Advance Digital Therapies for COPD and Asthma

On January 8, 2019, VCBeat (WeChat official account: vcbeat) learned that ResMed, a connected health company, announced the acquisition of digital therapeutics company Propeller Health for $225 million. The transaction is expected to be completed by March 30, 2019.

ResMed is a global leader in digital health, with more than 6 million cloud-connected devices used for daily remote patient monitoring. Its devices and software solutions help treat and manage sleep apnea, chronic obstructive pulmonary disease (COPD), and other respiratory conditions. The company is committed to improving patients’ quality of life, reducing the impact of chronic diseases, and lowering healthcare costs for patients.

Propeller Health is a digital therapeutics company that provides healthcare solutions for patients with chronic obstructive pulmonary disease (COPD) and asthma. By leveraging connected devices, analytics, and digital monitoring trials, it designs products that more effectively treat chronic respiratory diseases and improve clinical outcomes for patients. As a result, the Propeller platform is widely used by patients, physicians, and healthcare organizations across multiple regions.

Following the acquisition, Propeller Health will continue to operate as an independent company from its offices in Madison, Wisconsin, and San Francisco, collaborating with key pharmaceutical partners and other healthcare organizations to provide digital therapeutics and valuable, actionable insights to Propeller users. This aims to increase medication adherence, reduce symptom occurrence, and decrease emergency room visits.

“For me, Propeller is a high-performance partner with strong innovation capabilities in the digital health space,” said Mick Farrell, CEO of ResMed. “Propeller’s digital solutions and partnerships enhance the promotion of ResMed’s existing product portfolio, providing support at every stage for millions of patients with COPD and other chronic conditions. The company remains committed to improving quality of life and reducing the burden of these diseases, while also lowering hospitalization rates and healthcare costs.”

Propeller will continue to operate as an independent business within ResMed’s respiratory care portfolio. There will be no immediate changes to its office locations, business processes, or management team. David Van Sickle, Co-founder and CEO of Propeller Health, will remain in his role and report to Richie McHale, President of ResMed Respiratory Care.

As initially announced by ResMed on December 3, 2018, the growth of the Propeller business is expected to have a minimal impact on ResMed’s non-GAAP earnings per share, adding approximately $0.01 to $0.02 per quarter.