The ResMed Inc. (ASX: RMD) share price has lifted 1.36% to $15.60 on Tuesday afternoon.
The dual-listed sleep device company announced yesterday afternoon that its acquisition of Propeller Health had completed. The addition of Propeller Health will allow ResMed to offer a more diverse suite of products for the treatment of chronic obstructive pulmonary disease (COPD).
Propeller Health is a digital therapeutics company aimed at helping people manage their COPD and asthma. Its platform involves the use of sensors which attach to a patient's inhaler and provide information to a mobile app, giving personal insights to patients and their doctors.
The technology is claimed to improve medication adherence by as much as 58%, increase symptom-free days by 48% and reduce emergency room visits by 53%.
Listed in both the US and on the ASX, ResMed is a California-based company that primarily provides equipment for the treatment of sleep-related sleeping disorders. The definitive agreement was signed in December, making it the third acquisition announced by ResMed in 2018.
ResMed CEO Mick Farrell views the acquisition as "a significant step for ResMed toward becoming the global leader in digital health for COPD". He envisages the addition of Propeller Health will complement ResMed's own cloud-connected technology for the treatment of COPD.
Propeller Health will continue to operate separately to ResMed. "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," said David Van Sickle, CEO of Propeller.
The $US225 million ($A306 million) acquisition was funded mostly with ResMed's credit facility. The deal is expected to dilute ResMed's quarterly non-GAAP earnings per share by between $0.01 to $0.02 in FY19.
