San Diego-based ResMed (NYSE: RMD) (ASX: RMD), a provider of cloud-connected medical devices and out-of-hospital software-as-a-service solutions, has agreed to pay $225 million for Propeller Health, which provides connected health solutions for people living with chronic obstructive pulmonary disease (COPD) and asthma.
Named one of Healthcare Informatics “Up and Comer” companies for 2015 and a “2017 Most Innovative Company” by Fast Company, Propeller helps people and their doctors better manage their COPD and asthma. Its digital medicine platform consists of small sensors that attach to consumers’ inhalers and pair with a mobile app to automatically track medication use and provide personal feedback and insights. Propeller says it clinically validated solutions have demonstrated a 58 percent improvement in medication adherence, 48 percent increase in symptom-free days and 53 percent reduction in emergency room visits.
ResMed said that Propeller’s ability to support people in stage II and III severity levels of their COPD complements its own suite of cloud-connected ventilators for those with stage III and IV COPD.
“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,” said ResMed CEO Mick Farrell, in a prepared statement.
“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.”
Propeller is privately funded, and based in Madison, Wis., 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.